Aruba’s Anti-Money Laundering Efforts Face Criticism in Latest Mutual Evaluation Report
The Caribbean Financial Action Task Force (CFATF) has released its latest mutual evaluation report on Aruba’s anti-money laundering (AML) and combating the financing of terrorism (CFT) efforts, highlighting both strengths and weaknesses.
Progress Made
Aruba has made significant progress in strengthening its AML/CFT regime since the last round of evaluations in 2008. The country has implemented an effective institutional framework, with a good understanding of money laundering/terrorist financing risks among competent authorities. Financial intelligence units (FIUs) are also utilizing financial intelligence and relevant information to identify targets and conduct investigations.
Strengths
- Effective institutional framework
- Good understanding of money laundering/terrorist financing risks
- Utilization of financial intelligence and relevant information by FIUs
Areas for Improvement
The report identified several areas that require improvement. Aruba’s implementation of targeted financial sanctions (TFS-TF and TFS-PF) is still lacking, and there is a need for better supervision of non-profit organizations (NPOs). The country also needs to improve its ML investigation and prosecution processes, as well as increase transparency in legal persons and arrangements.
Weaknesses
- Lack of implementation of targeted financial sanctions
- Need for better supervision of NPOs
- Inadequate ML investigation and prosecution processes
- Limited transparency in legal persons and arrangements
Economic Profile
Aruba’s economy is heavily reliant on tourism, with the majority of its revenue coming from this sector. The country has conducted three national risk assessments (NRAs), two of which focused on money laundering risks and one on terrorist financing and proliferation financing.
Major Proceeds-Generating Crimes
- Drug trafficking
- Bulk cash smuggling
- Bribery and corruption
- Fraud
- Underground banking
- Organized crime
- Human trafficking
- Migrant smuggling
Sectors Vulnerable to Money Laundering
- Casinos
- Banks
- Real estate
- Money transfer companies
- Notaries
Response to the Report
In response to the report, Aruba’s authorities have committed to addressing the identified weaknesses and improving its AML/CFT regime. The country is expected to implement a number of reforms aimed at strengthening its supervisory framework, improving transparency in legal persons and arrangements, and increasing cooperation with international partners.
Commitments
- Strengthening supervisory framework
- Improving transparency in legal persons and arrangements
- Increasing cooperation with international partners
Conclusion
The CFATF’s report concludes that while Aruba has made progress in strengthening its AML/CFT regime, there are still significant improvements needed to ensure effective implementation and enforcement of anti-money laundering measures. The country is expected to take concrete steps to address these weaknesses and improve its overall level of compliance with international AML/CFT standards.