Aruba Touts Strengthened Anti-Money Laundering Regulations to Combat Financial Crime

To enhance its reputation as a safe and secure financial hub, Aruba has strengthened its anti-money laundering (AML) regulations to combat the financing of terrorism and proliferation. The revised framework is based on recommendations from the Financial Action Task Force (FATF) and aims to prevent and detect money laundering activities while ensuring compliance with international standards.

Key Components of the New Regulations

The State Ordinance for the Prevention and Combating Money Laundering and Terrorist Financing sets out provisions for:

• Customer Due Diligence: Financial service providers must conduct thorough due diligence on customers to verify their identity, business purpose, and source of funds.
• Reporting of Unusual Transactions: Providers are required to report suspicious transactions to the relevant authorities to prevent and detect money laundering activities.
• Record Keeping: Institutions must maintain accurate records of customer transactions to ensure transparency and accountability.
• Supervision and Enforcement: The Central Bank of Aruba (CBA) will oversee compliance with AML regulations and enforce penalties for non-compliance.

Handbook for Prevention and Detection of Money Laundering and Financing of Terrorism

The CBA has revised its Handbook, which applies to all financial service providers and designated non-financial service providers in Aruba. The handbook provides guidance on:

• Wire Transfers: Providers must maintain records of wire transfers and report suspicious transactions.
• Administrative Enforcement: Institutions must have a system for detecting and reporting suspicious transactions.
• Stock Exchanges: Stock exchanges must implement AML measures to prevent fraudulent activities.
• Introduction Countries: Providers must verify the identity of customers in introduction countries before conducting transactions.

Ultimate Beneficial Owners

The revised regulations require financial institutions to identify and verify the ultimate beneficial owners (UBOs) of their customers. UBOs are individuals or entities that ultimately own or control a company.

Impact on Aruba’s Financial Sector

The strengthening of Aruba’s AML/CFT framework is a significant step forward in combating financial crime and maintaining the country’s reputation as a responsible and compliant financial center. The revised regulations will help ensure that Aruba’s financial institutions are better equipped to detect and prevent money laundering activities, while also enhancing the country’s overall economic stability and security.

Conclusion

Aruba’s strengthened AML regulations demonstrate its commitment to combating financial crime and maintaining a secure financial environment. The revised framework is expected to enhance the country’s reputation as a responsible financial center, attract more international businesses, and contribute to a stable and prosperous economy.