Financial Crime World

Combating Money Laundering and Terrorist Financing in Aruba: The Need for International Cooperation Mechanisms

Aruba, one of the four autonomous countries within the Kingdom of the Netherlands, faces significant challenges in combating money laundering (ML) and terrorist financing (TF). Despite efforts to strengthen its anti-money laundering and combating the financing of terrorism (AML/CFT) framework, the country still needs to address several shortcomings to effectively combat these threats.

Challenges in Combating Money Laundering and Terrorist Financing

  • The financial intelligence unit (FIU) has identified major proceeds-generating crimes such as drug trafficking and bulk cash smuggling.
  • Lack of consistent training for law enforcement agencies (LEAs) and prosecutors hinders the effective investigation and prosecution of ML/TF cases.
  • Resource constraints and inadequate statistics hinder the confiscation process of seized assets, including gold, cash, real estate, and motor vehicles.

Shortcomings in Aruba’s AML/CFT Framework

  • Weaknesses in legislation and lack of guidance for reporting entities limit the implementation of targeted financial sanctions (TFS).
  • Technical deficiency in Aruba’s law governing non-profit organizations (NPOs) affects the effectiveness of the system.
  • Limited transparency in legal persons and arrangements.

Recommendations to Strengthen AML/CFT Efforts

Improving Training and Capacity Building

  • Conduct comprehensive training for LEAs and prosecutors on ML/TF investigation and prosecution.

Enhancing Asset Confiscation Processes

  • Address resource constraints and inadequate statistics to improve the confiscation process of seized assets.

Strengthening Targeted Financial Sanctions

  • Implement TFS effectively by addressing weaknesses in legislation and providing guidance for reporting entities.

Improving NPO Supervision and Transparency

  • Address technical deficiencies in Aruba’s law governing non-profit organizations (NPOs).
  • Enhance transparency in legal persons and arrangements.

Conclusion

By implementing these recommendations, Aruba can strengthen its efforts to combat ML/TF and improve international cooperation with other countries. It is essential for the country to address the identified shortcomings and enhance its AML/CFT framework to effectively prevent and detect money laundering and terrorist financing activities.