Financial Crime World

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Aruba’s Efforts to Combat Money Laundering and Terrorist Financing

A recent report by the Caribbean Financial Action Task Force (CFATF) has highlighted both strengths and weaknesses in Aruba’s efforts to combat money laundering (ML) and terrorist financing (TF). The report, which assesses the country’s anti-money laundering/counter-terrorist financing (AML/CFT) regime, notes that while there have been improvements, there are still areas where significant work is needed.

Training for Law Enforcement Agencies

One of the key findings of the report is that law enforcement agencies and prosecutors in Aruba have not received consistent training on TF investigations and prosecutions. This lack of training can hinder efforts to effectively combat TF and ML.

Financial Investigations

The report highlights the importance of financial investigations, which are critical to identifying, tracing, and confiscating proceeds of crime. The Asset Recovery Team (ART) has been established to support these efforts, and there have been significant seizures of assets related to drug trafficking and other predicate offenses.

Targeted Financial Sanctions

Aruba’s implementation of targeted financial sanctions (TFS) is another area where improvement is needed. While the country has made progress in this regard, the report notes that there are still weaknesses in the implementation of TFS for both TF and ML purposes.

Non-Profit Organizations

The report also highlights the need for improved supervision of non-profit organizations (NPOs), which can be vulnerable to ML and TF risks. NPOs must be subject to effective oversight and reporting requirements to ensure that they are not being used for illicit activities.

Overall Level of Compliance

While Aruba’s AML/CFT regime has been strengthened through legislative amendments and institutional policies, there is still much work to be done. The report notes that significant improvements are needed in areas such as ML investigations and prosecution, transparency of legal persons and arrangements, and the implementation of TFS.

Recommendations

The CFATF report makes several recommendations for improvement, including:

  • Providing consistent training for law enforcement agencies and prosecutors on TF investigations and prosecutions
  • Strengthening financial investigations and asset recovery efforts
  • Improving the implementation of targeted financial sanctions for both TF and ML purposes
  • Enhancing supervision and reporting requirements for non-profit organizations
  • Increasing transparency of legal persons and arrangements

By addressing these areas, Aruba can improve its effectiveness in combating ML and TF, and ensure that its AML/CFT regime is robust and effective.