Financial Crime World

Aruba Tightens Anti-Money Laundering Guidelines to Combat Financial Crimes

Aruba has strengthened its anti-money laundering (AML) and combating the financing of terrorism (CFT) framework to prevent financial crimes, in line with international recommendations. The revised guidelines aim to enhance transparency, accountability, and cooperation among financial institutions and designated non-financial service providers.

Key Provisions of the AML/CFT State Ordinance

  • Customer Due Diligence: Financial institutions must conduct thorough customer due diligence to identify and verify their customers’ identities.
  • Reporting of Unusual Transactions: Institutions must report any unusual or suspicious transactions to the relevant authorities.
  • Record Keeping: Accurate record keeping is essential for monitoring and detecting money laundering and terrorist financing activities.
  • Supervision: Regulatory bodies will oversee the implementation of AML/CFT measures to ensure compliance.
  • Enforcement: The ordinance provides for effective enforcement mechanisms, including penalties and sanctions for non-compliance.

Complementary Handbook

The CBA-revised Handbook for the prevention and detection of money laundering and financing of terrorism provides additional guidance on implementing AML/CFT measures. This handbook is essential reading for all financial institutions and designated non-financial service providers.

To further clarify the AML/CFT framework, several related state decrees and regulations have been enacted, including:

  • Legislation on Wire Transfers: Regulates wire transfers to prevent money laundering and terrorist financing.
  • Administrative Enforcement Principles: Outlines the procedures for enforcing AML/CFT measures.
  • Designated Stock Exchanges: Requires stock exchanges to implement AML/CFT measures.
  • Introduction Countries: Provides guidance on introducing new countries to the AML/CFT framework.
  • Verification Documents: Specifies the documents required for verifying customers’ identities.
  • Relevant Indicator Regulations: Regulates indicators of money laundering and terrorist financing.

New Regulation: Ultimate Beneficial Owners

To ensure that financial institutions can identify the true beneficiaries of transactions, a new regulation on ultimate beneficial owners has been introduced. This regulation requires institutions to maintain accurate records of beneficial ownership information.

Implementation and Effectiveness

The revised guidelines come into effect as of January 1, 2020, and apply to all financial service providers and designated non-financial service providers defined in section 1 of the AML/CFT State Ordinance. The move is expected to enhance Aruba’s ability to combat money laundering, terrorist financing, and proliferation financing, while also strengthening its reputation as a secure and reliable financial hub.