Aruba Adopts Strict Measures to Combat Money Laundering and Terrorist Financing
The government of Aruba has introduced new regulations aimed at preventing money laundering and terrorist financing. The measures focus on enhancing customer due diligence, monitoring transactions, and combating the misuse of new technologies.
Politically Exposed Persons
Article 12 requires financial institutions to establish policies and procedures for identifying and verifying the identity of politically exposed persons (PEPs) and their family members. Service providers must also determine the source of wealth of PEPs and conduct ongoing monitoring of business relationships with them.
- Establish policies and procedures for identifying and verifying PEPs
- Determine the source of wealth of PEPs
- Conduct ongoing monitoring of business relationships with PEPs
Correspondent Bank Relationships
Article 17 sets out the requirements for banks entering into correspondent bank relationships, including:
- Collecting information about the correspondent bank’s business activities, reputation, and supervision
- Assessing the effectiveness of the correspondent bank’s anti-money laundering measures
- Recording responsibilities in writing
Identification and Verification
Article 19 outlines the documents required for identification and verification of clients, including natural persons, legal persons, and trusts. The article also requires service providers to verify the identity of ultimate beneficiaries using reliable and internationally accepted documents or information.
- Documents required for identification and verification:
- Natural persons: passport, national ID card, or other government-issued ID
- Legal persons: articles of incorporation, business registration certificate, or other official documents
- Trusts: trust deed, trust agreement, or other relevant documentation
- Verify the identity of ultimate beneficiaries using reliable and internationally accepted documents or information
Shell Banks
Article 18 prohibits banks from entering into correspondent bank relationships with shell banks and requires them to ensure that financial institutions domiciled outside Aruba do not use their accounts for money laundering purposes.
Ministerial List
Article 16 requires banks to maintain correspondent bank relationships only with institutions listed on a ministerial list of countries that have adequate anti-money laundering and counter-terrorist financing measures in place. The list will be updated regularly by the Minister of Finance.
By implementing these stringent measures, Aruba demonstrates its commitment to combating money laundering and terrorist financing, ensuring the integrity of its financial system, and protecting its citizens from financial crimes.
Note: The new regulations come into effect immediately, and financial institutions are required to comply with the requirements within a specified timeframe. Non-compliance may result in penalties and fines.