Aruba Introduces Stricter Regulations on Customer Due Diligence

Combating Money Laundering, Terrorist Financing, and Proliferation Financing

The government of Aruba has introduced new regulations requiring service providers to conduct thorough customer due diligence in order to combat money laundering, terrorist financing, and proliferation financing.

Key Requirements

• Service providers must perform customer due diligence for transactions involving cash transactions above Afl. 10,000 or equivalent in other currencies.
• Identification of the ultimate beneficial owner of the transaction through official documents such as passports and ID cards is required.
• Service providers are prohibited from establishing a business relationship or carrying out a transaction if they have not performed or are unable to perform customer due diligence.
• Existing business relationships that cannot be complied with these regulations must be ended.

Simplified Customer Due Diligence

• Certain customers and transactions, such as:
  • Financial institutions supervised by the Supervisory Authority
  • Public limited companies listed on recognized stock exchanges
  • Government entities
  • May be subject to simplified customer due diligence.
• Service providers must collect sufficient data and carry out regular investigations to establish whether the simplified customer due diligence applies to a customer.
• The results of these investigations must be set out in writing.

Exceptions

• The regulations do not apply if the customer or transaction carries a higher risk of money laundering, terrorist financing, or proliferation financing.
• If there are indications that the customer is involved in such activities, the regulations also do not apply.

Effective Date and Compliance

• The new regulations come into effect on [insert date].
• Service providers must ensure compliance to avoid any penalties or fines.