Financial Crime World

Aruba’s Justice Measures: Room for Improvement

A recent report by the Caribbean Financial Action Task Force (CFATF) has highlighted several areas where Aruba can improve its justice measures to combat money laundering and terrorist financing.

Lack of Consistent Training

According to the report, one of the key issues is the lack of consistent training for law enforcement agencies (LEAs) and prosecutors related to terrorist financing investigations and prosecutions. This has resulted in a lack of expertise in this area, which can hinder efforts to disrupt potential activities.

Weaknesses in Confiscation and Provisional Measures Regime

The report also notes that financial investigations are an integral part of Aruba’s policy objective, but there are some weaknesses in the confiscation and provisional measures regime. While competent authorities have seized a wide range of assets, including gold, cash, real estate, and motor vehicles, there are some minor weaknesses related to resource constraints and inconsistent training.

Targeted Financial Sanctions (TFS) - TF Framework

Another area for improvement is the implementation of TFS-TF framework. While TFS-TF is implemented to a large extent, there are some weaknesses in the legislation and reporting entities have expressed a need for further guidance.

Technical Deficiencies

The report also highlights technical deficiencies in Aruba’s Anti-Money Laundering (AML) / Combating the Financing of Terrorism (CFT) regime, including issues with Non-Profit Organization (NPO) supervision, Money Laundering (ML) investigations and prosecution, and transparency of legal persons and arrangements. Additionally, Aruba has not conducted a risk assessment of Virtual Asset Service Providers (VASPs) and Virtual Assets (VAs), despite the growing importance of these areas.

Conclusion

The CFATF report concludes that while Aruba’s AML/CFT regime has shown some effectiveness in certain areas, there is still much room for improvement. The authorities must work to address these weaknesses and strengthen their justice measures to effectively combat money laundering and terrorist financing.

Key Recommendations

  • Provide consistent training for LEAs and prosecutors related to terrorist financing investigations and prosecutions
  • Strengthen the confiscation and provisional measures regime to ensure effective asset seizure and forfeiture
  • Improve guidance and supervision of reporting entities to enhance TFS-TF implementation
  • Conduct a risk assessment of VASPs and VAs to better understand the risks associated with these areas
  • Address technical deficiencies in Aruba’s AML/CFT regime, including NPO supervision, ML investigations and prosecution, and transparency of legal persons and arrangements.