Financial Crime World

Aruba: Financial Crime Definition Takes Center Stage as Governments Crack Down on Money Laundering

A Major Concern for Governments and International Bodies

Money laundering has become a significant concern in Aruba, with billions of Florins changing hands annually. The process of converting illicit gains into legitimate assets through global financial institutions has made it easier for criminal organizations to thrive.

What is Money Laundering?

Money laundering typically occurs in three stages: placement, layering, and integration. However, this traditional approach does not account for every type of operation, and criminals often adapt their methods to evade detection. The definition of money laundering focuses on the conversion, concealment, disguise, acquisition, possession, use, and retention of property derived from criminal activity.

Combating Money Laundering in Aruba

To combat this issue, the Financial Intelligence Analysis Unit (FIAU) was established under the Prevention of Money Launderling Act (Cap 373 of the Laws of Aruba). The FIAU is responsible for preventing money laundering and financing of terrorism, while the Financial Authorities of Aruba (FAA), as the financial services supervisory authority, has a vested interest in preventing the use and involvement of authorized persons in such crimes.

  • The FAA plays a crucial role in AML/CTF supervision, working closely with the FIAU to monitor compliance by financial services license holders.
  • The two entities have entered into a Memorandum of Understanding outlining their framework for cooperation.
  • Sanctions are imposed by the FIAU for non-compliance with AML/CFT requirements, and the FAA may also take regulatory action against license holders.

Prevention of Money Laundering Act

The Prevention of Money Launderling Act has adopted an ‘all crimes’ approach to criminalize money laundering. The act establishes the Financial Intelligence Analysis Unit (FIAU) and supplements it with implementing procedures that provide guidance to subject persons on their obligations under the regulations.

  • Failure to comply with these procedures can result in administrative penalties.
  • The FIAU is responsible for preventing money laundering and financing of terrorism, while the FAA plays a crucial role in AML/CTF supervision.

Understanding Your Role in Preventing Financial Crime

As governments continue to crack down on financial crime, it is essential for individuals and organizations to understand the definition of money laundering and their role in preventing this illegal activity. By knowing what money laundering is and how it operates, we can work together to prevent this illegal activity and maintain the integrity of our financial systems.