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Aruba’s Efforts to Combat Money Laundering and Terrorist Financing Fall Short

A recent report by the Caribbean Financial Action Task Force (CFATF) has highlighted several weaknesses in Aruba’s efforts to combat money laundering (ML) and terrorist financing (TF). Despite having a strong framework in place, the island nation still faces challenges in implementing its anti-money laundering and combating the financing of terrorism (AML/CFT) regime.

Training Lacking for Law Enforcement Agencies

One of the main issues identified by the report is the lack of consistent training for law enforcement agencies (LEAs) and prosecutors on TF investigations and prosecutions. This has led to a situation where LEAs are not adequately equipped to tackle ML and TF cases, resulting in incomplete investigations and prosecutions.

Financial Investigations: A Key Component

The CFATF report highlights the importance of financial investigations as an integral part of Aruba’s AML/CFT regime. The Asset Recovery Team (ART) has seized a wide range of assets, including gold, cash, real estate, and motor vehicles, which are believed to be proceeds of domestic and foreign predicate offenses or related to TF. However, the report notes that there is still room for improvement in this area.

Technical Compliance Needs Improvement

The report also identifies several areas where technical compliance needs improvement. These include:

• Implementation of targeted financial sanctions (TFS) against individuals and entities associated with TF
• Supervision of non-profit organizations (NPOs)
• Comprehensive ML/TF risk assessment process that considers all relevant factors

Recommendations for Improvement

To address these weaknesses, the CFATF has made several recommendations to improve Aruba’s AML/CFT regime. These include:

• Providing training for LEAs and prosecutors on TF investigations and prosecutions
• Improving financial intelligence gathering and analysis
• Enhancing international cooperation

Conclusion

While Aruba has made significant progress in implementing its AML/CFT regime, there are still several areas where improvement is needed to ensure the effective combating of ML and TF. It is essential that the island nation addresses these weaknesses to maintain the integrity of its financial system and prevent the misuse of its jurisdiction for illicit activities.

Source

Caribbean Financial Action Task Force (CFATF) - Fourth Round Mutual Evaluation Report of Aruba