Aruba’s AML/CTF Regulations: A Comprehensive Guide
In an effort to combat money laundering and terrorist financing, Aruba has established robust regulations for financial institutions and designated non-financial service providers to comply with international standards.
Compliance Requirements
To meet the Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) regulations in Aruba, financial or designated non-financial service providers must adhere to the State Ordinance for the Prevention and Combating of Money Laundering and Terrorist Financing (AML/CFT State Ordinance). This ordinance is based on the Financial Action Task Force’s 40 Recommendations to Combat Money Laundering, Terrorist Financing, and Proliferation.
Identifying High-Risk Transactions
Service providers must conduct customer due diligence or enhanced customer due diligence when a business relationship or transaction has a higher risk of money laundering or terrorism financing due to its nature. Additionally, they must inform the authorities about unusual transactions and observe the AML/CFT State Ordinance.
- Identify high-risk customers
- Conduct enhanced customer due diligence
- Report unusual transactions
Reporting Obligations
Aruba’s financial intelligence unit requires service providers to report any unusual transaction that has been executed or planned as soon as it is learned of its irregularity. This includes:
- Objective measures:
- Transactions reported to the police or ministry of justice
- Transactions made by or on behalf of individuals or entities listed on verified sanctions lists
- Cash transactions exceeding certain thresholds
- Subjective measures:
- Reports based on potential money laundering or terrorism financing
Subjective Measures
Service providers must report transactions that could potentially be related to money laundering or terrorism financing based on subjective measures. These reports must include:
- Specific information about the transaction, including:
- Type and number of client’s identity document
- Type, timing, and location of the transaction
- Sum, place of origin, and source of funds used
FIU Aruba: The Primary Regulatory Body
The Financial Intelligence Unit of Aruba is an independent government agency responsible for collecting, processing, and analyzing data to identify and prevent money laundering and terrorism financing. As a FATF-listed country with strategic AML deficiencies, Aruba’s financial institutions and service providers must remain vigilant in their compliance efforts to avoid penalties and reputational damage.
Conclusion
By understanding the AML/CFT regulations in Aruba, financial institutions and designated non-financial service providers can ensure they are meeting their reporting obligations and maintaining a secure and transparent business environment.