Financial Crime World

Aruba Takes Action to Combat Money Laundering and Terrorism Financing with Blockchain Technology

Oranjestad, Aruba - The Financial Intelligence Unit of Aruba (FIU Aruba), the country’s primary regulatory body for anti-money laundering and combating the financing of terrorism (AML/CTF), is taking significant steps to combat these threats using blockchain technology.

Regulatory Requirements

In an effort to prevent money laundering and terrorism financing, FIU Aruba requires financial and designated non-financial service providers to comply with strict regulations. These regulations are based on the Financial Action Task Force’s (FATF) 40 Recommendations to Combat Money Laundering, Terrorist Financing, and Proliferation.

Customer Due Diligence

Financial institutions in Aruba must conduct customer due diligence (CDD) or enhanced customer due diligence when a business relationship or transaction has a higher risk of money laundering or terrorism financing. They are also required to report any unusual transactions to FIU Aruba as soon as possible.

Reportable Transactions

Aruba is currently on the FATF List of Countries that have been identified as having strategic AML deficiencies, highlighting the importance of effective AML/CTF measures in the country.

FIU Aruba requires financial institutions to report any transaction that has been reported to the police or ministry of justice, transactions made by or on behalf of individuals or entities listed on verified lists, wire transfers greater than or equal to 500,000 Afl, cash transactions greater than or equal to 25,000 Afl, and cash transactions greater than or equal to 5,000 Afl for casinos.

Unusual Transaction Reporting

The agency also requires financial institutions to report any transaction that could potentially be related to money laundering or terrorism financing. An unusual transaction report must include:

  • The type and number of the client’s identity document
  • The type, timing, and location of the transaction
  • The sum, place of origin, and source of funds used in the transaction
  • Circumstances that suggest the transaction is unusual

Blockchain Technology

FIU Aruba’s use of blockchain technology aims to enhance transparency and prevent financial crimes. By leveraging this innovative technology, the agency can better track and trace transactions, identify suspicious activity, and take swift action against money laundering and terrorism financing.

Implementation

The implementation of blockchain technology in Aruba’s AML/CTF regime is a significant step forward in the country’s efforts to combat financial crime and maintain its reputation as a responsible and transparent financial center.