Financial Crime World

Aruba’s Anti-Money Laundering and Combating the Financing of Terrorism Efforts Face Challenges

Introduction

A recent report by the Caribbean Financial Action Task Force (CFATF) has highlighted the need for improvement in Aruba’s efforts to combat money laundering (ML) and the financing of terrorism (TF). While the island nation has made progress in strengthening its anti-money laundering and combating the financing of terrorism (AML/CFT) regime, there are still several areas that require attention.

Challenges Identified

Lack of Consistent Training for Law Enforcement Agencies

  • The report identified a lack of consistent training for law enforcement agencies (LEAs) and prosecutors on TF investigations and prosecutions.
  • This has resulted in a limited understanding of TF risks and a lack of effective prosecution of TF cases.

Implementation of Targeted Financial Sanctions

  • The implementation of targeted financial sanctions (TFS) against TF and proliferation financing (PF) was identified as an area of concern.
  • While the National Sanctions Committee and the Kingdom of the Netherlands have implemented TFS-TF, there are weaknesses in the legislation governing TFS-PF.
  • Reporting entities have expressed a need for further guidance on implementing these measures.

Non-Profit Organization Supervision

  • The report emphasized the importance of supervising non-profit organizations (NPOs) and their role in preventing ML/TF/PF.
  • However, Aruba’s NPO supervision is still considered to be inadequate, with many NPOs not being subject to adequate oversight.

ML Investigations and Prosecution

  • The report highlighted the need for improvement in ML investigations and prosecution.
  • The lack of effective investigation and prosecution of ML cases has hindered the country’s ability to combat this criminal activity.

Recommendations

The CFATF report provided several recommendations for Aruba to improve its AML/CFT regime, including:

Improving Training for LEAs and Prosecutors

  • Improve training for LEAs and prosecutors on TF investigations and prosecutions.

Strengthening TFS-PF Implementation

  • Strengthen the implementation of TFS-PF.
  • Provide further guidance to reporting entities on implementing these measures.

Enhancing NPO Supervision

  • Enhance NPO supervision to ensure adequate oversight of NPOs.

Improving ML Investigations and Prosecution

  • Improve ML investigations and prosecution.
  • Increase transparency of legal persons and arrangements.
  • Increase transparency of legal persons and arrangements.

By implementing these recommendations, Aruba can further strengthen its AML/CFT regime and better combat ML/TF/PF.