Financial Crime World

Aruba Intensifies Anti-Terrorism Financing Efforts with Enhanced Regulations

In a bid to combat money laundering and the financing of terrorism and proliferation, Aruba has strengthened its anti-terrorism financing regulations in line with the recommendations of the Financial Action Task Force (FATF). The revised framework aims to ensure that financial institutions and designated non-financial service providers adhere to rigorous standards.

Key Components of the Revised Framework

The cornerstone of the revamped framework is the State Ordinance for the Prevention and Combating Money Laundering and Terrorist Financing (AML/CFT State Ordinance), which outlines essential provisions including:

  • Customer due diligence
  • Reporting of unusual transactions to the Financial Intelligence Unit
  • Record keeping
  • Supervision
  • Enforcement

The ordinance applies to all financial service providers and designated non-financial service providers as defined in section 1.

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

To facilitate compliance, the Central Bank of Aruba (CBA) has revised the Handbook for the prevention and detection of money laundering and financing of terrorism (AML/CFT Handbook). Effective January 1, 2020, the handbook applies to all financial service providers and designated non-financial service providers, providing a comprehensive guide on AML/CFT best practices.

The government has also issued several related state decrees and regulations to further buttress the framework. These include:

  • State Decree Wire Transfers: regulating wire transfers
  • Principles for administrative enforcement
  • Regulation of designated stock exchanges
  • Designated introduction countries
  • Verification documents
  • Relevant indicator regulations
  • Regulation Ultimate Beneficial Owner: requiring disclosure of beneficial ownership

Enhanced Anti-Terrorism Financing Regulations

The enhanced anti-terrorism financing regulations are expected to significantly bolster Aruba’s efforts in combating financial crimes and ensuring a safer financial environment for its citizens.