Financial Crime World

Aruba Takes a Stand Against Financial Inclusion and Money Laundering

In its efforts to combat financial inclusion and anti-money laundering, Aruba has established a robust framework that is based on the 40 Recommendations of the Financial Action Task Force (FATF) to prevent money laundering and terrorist financing.

The AML/CTF State Ordinance: Key Provisions

At the heart of this framework is the State Ordinance on the Prevention and Combating Money Laundering and Terrorist Financing (AML/CFT State Ordinance). This ordinance sets out key provisions that financial institutions, as well as designated non-financial service providers, must adhere to. These include:

  • Customer Due Diligence Requirements: Financial institutions and designated non-financial service providers are required to conduct thorough customer due diligence.
  • Reporting of Unusual Transactions: Institutions must report any unusual or suspicious transactions to the authorities.
  • Record-Keeping Obligations: Accurate record-keeping is essential for tracking financial transactions.
  • Supervision and Enforcement Measures: The Central Bank of Aruba (CBA) ensures that institutions comply with these requirements through regular supervision and enforcement measures.

Designated Non-Financial Service Providers

Designated non-financial service providers, such as:

  • Lawyers
  • Civil notaries
  • Tax advisors
  • Accountants
  • Jewelers
  • High-value dealers
  • Casinos

are required to register with the CBA and comply with the AML/CFT State Ordinance. Similarly, other service providers like investment brokers, factoring and leasing companies must also adhere to these requirements.

Handbook for Prevention and Detection of Money Laundering and Combating the Financing of Terrorism

To ensure that financial institutions and designated non-financial service providers understand their obligations under the AML/CFT State Ordinance, the CBA has published the Handbook for the Prevention and Detection of Money Laundering and Combating the Financing of Terrorism. This comprehensive guide provides clear instructions on how to apply the statutory requirements set out in the ordinance, as well as regulatory requirements and guidelines.

A Proactive Stance Against Financial Inclusion and Money Laundering

With this framework in place, Aruba is taking a proactive stance against financial inclusion and money laundering, ensuring that its financial system remains secure and transparent for both domestic and international transactions.