Financial Crime World

Aruba Imposes Financial Sanctions Amid Global Embargoes

In an effort to comply with international law, Aruba has implemented financial sanctions against several countries, regimes, and organizations deemed threats to regional or global peace. These measures are aimed at forcing these entities to adhere to international norms and standards.

According to the National Interest (Enabling Powers) Act, United Nations Security Council Resolutions imposing sanctions are directly applicable and enforceable in Aruba. Additionally, EU Council and Commission Regulations related to restrictive measures are inherent to Aruba’s membership of the European Union.

Consequences of Non-Compliance

Those found guilty of violating financial sanctions can face imprisonment and/or fines. The Sanctions Monitoring Board is responsible for overseeing and supervising sanctions legislation in Aruba, including monitoring the application and effectiveness of sanctions.

Financial Sanctions: Key Components

Financial sanctions, a key component of international embargoes, impose duties on individuals, companies, and entities to:

  • Freeze funds, assets, and economic resources belonging to designated individuals and entities
  • Prohibit making available funds, financial assets, or economic resources to or for the benefit of these entities

US Sanctions Implications

The United States has also imposed its own sanctions on several countries, including Iran, which carry significant implications for financial institutions and businesses in Aruba. The Office of Foreign Assets Control (OFAC) has the authority to impose sanctions on non-US banks that engage in prohibited transactions, including providing financial services to designated individuals or entities.

Compliance Guidelines

To ensure compliance with international sanctions:

  • Refer to the relevant Sanctions Monitoring Board, United Nations, and EU websites for the latest information
  • Seek professional advice if necessary to prevent inadvertent involvement in activities, individuals, or entities subject to sanctions

Importance of Understanding Financial Sanctions

The Aruba Financial Authority (FAA) emphasizes that it is crucial for all stakeholders to understand and adhere to financial sanctions to avoid potential violations and maintain a safe and stable financial environment.