Financial Crime World

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Regulatory and International Cooperation Mechanisms in Aruba Fall Short

A recent evaluation report by the Caribbean Financial Action Task Force (CFATF) has highlighted several weaknesses in Aruba’s regulatory framework and international cooperation mechanisms, which may be disrupting efforts to combat money laundering (ML) and terrorist financing (TF).

Lack of Training and Resources

According to the report, law enforcement agencies (LEAs) and prosecutors in Aruba have not received consistent training related to TF investigations and prosecutions. This lack of training may hinder their ability to effectively investigate and prosecute ML/TF cases.

  • LEAs and prosecutors need consistent training on TF investigations and prosecutions.
  • Resource constraints and lack of consistent training hinder effective financial investigations.

Financial Investigations and Targeted Financial Sanctions

The report found that financial investigations, which are crucial for identifying, tracing, and confiscating proceeds of crime, are not being conducted consistently in Aruba. While LEAs have seized a range of assets, including gold, cash, real estate, and motor vehicles, resource constraints and a lack of consistent training may be limiting their ability to effectively conduct these investigations.

  • Financial investigations are not being conducted consistently, limiting the ability to confiscate proceeds of crime.
  • TFS-TF framework has gaps in legislation that need to be addressed.

International Cooperation and Non-Profit Organization Oversight

The report also highlighted weaknesses in the implementation of targeted financial sanctions (TFS) - TF framework. Although TFS-TF has been implemented to some extent, there are gaps in the legislation that need to be addressed. Additionally, there is a need for more effective international cooperation and coordination to combat ML/TF.

  • International cooperation and coordination are essential for combating ML/TF.
  • NPO supervision needs strengthening to prevent ML/TF.

Recommendations

To address these weaknesses, the CFATF report provides the following recommendations:

  • Provide consistent training for LEAs and prosecutors on TF investigations and prosecutions.
  • Conduct regular financial investigations to identify, trace, and confiscate proceeds of crime.
  • Address resource constraints and lack of consistent training for effective financial investigations.
  • Strengthen TFS-TF framework by addressing gaps in legislation.
  • Improve international cooperation and coordination to combat ML/TF.
  • Enhance NPO supervision to prevent ML/TF.

Overall, while Aruba has made progress in implementing an anti-money laundering and combating the financing of terrorism (AML/CFT) framework, there is still much work to be done to strengthen its regulatory regime and international cooperation mechanisms. The CFATF report provides a roadmap for Aruba to address these weaknesses and improve its effectiveness in combating ML/TF.