Financial Crime World

Aruba’s Anti-Money Laundering and Combating the Financing of Terrorism Efforts Show Promise, But Room for Improvement

Overview

The Caribbean Financial Action Task Force (CFATF) has released its fourth round mutual evaluation report on Aruba, highlighting both the island nation’s strengths and areas that require improvement in its anti-money laundering (AML) and combating the financing of terrorism (CFT) efforts.

Economic Background

Aruba’s economy is primarily based on tourism, with a growing financial sector. The country has implemented an AML/CFT framework, which has shown to be effective in some instances.

Effective Institutional Policies and Procedures

The Financial Intelligence Unit (FIU) and other competent authorities have a good understanding of money laundering and terrorist financing risks, utilizing financial intelligence and relevant information to identify targets, conduct investigations, and seize assets.

Strengthened AML/CFT Regime

Aruba’s AML/CFT regime has been strengthened through legislative amendments and the development of effective institutional policies and procedures. The Central Bank of Aruba (CBA) has adopted a risk-based approach to supervision, ensuring that financial institutions and designated non-financial businesses and professions (DNFBPs) are implementing preventive measures to prevent and detect money laundering, terrorist financing, and proliferation financing.

Areas for Improvement

However, the report identifies several areas that require improvement. These include:

  • The implementation of targeted financial sanctions against terrorist organizations
  • The supervision of non-profit organizations
  • The prosecution of money laundering cases
  • Transparency of legal persons and arrangements

Recommendations

The CFATF recommends that Aruba strengthen its AML/CFT regime by implementing measures to improve the investigation and prosecution of money laundering and terrorist financing offenses, as well as increasing public awareness and education on these issues.

Conclusion

While Aruba’s AML/CFT efforts show promise, the country still has work to do to fully comply with international standards. The CFATF will continue to monitor Aruba’s progress in this area and provide guidance and support as needed.