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Due Diligence Requirements for Service Providers
New regulations have been introduced to ensure that service providers in Aruba conduct thorough due diligence on their customers to prevent money laundering, terrorist financing, and proliferation financing.
Customer Due Diligence Requirements
According to Article 8 of the new regulations, a service provider must perform customer due diligence before establishing a business relationship or carrying out a one-off transaction. However, there are some exceptions to this rule:
- A service provider may verify the identity of the customer and the ultimate beneficial owner during the establishment of the business relationship if it is necessary to prevent disruption of the service provision and there is little risk of money laundering, terrorist financing, or proliferation financing.
- Simplified customer due diligence procedures can be applied in certain situations:
- When dealing with customers that are financial institutions established in Aruba and supervised by the Supervisory Authority
- When carrying out transactions worth less than Afl. 1,500 per year
Regular Investigations and Data Collection
Service providers must collect sufficient data and carry out regular investigations to establish whether a customer is eligible for simplified due diligence. The results of these investigations must be set out in writing.
Prohibited Transactions
Service providers are also prohibited from establishing a business relationship or carrying out a transaction if they have not performed or are unable to perform customer due diligence, or if the due diligence has not led to the expected result.
Consequences of Non-Compliance
Failure to comply with the new regulations can result in serious consequences, including the immediate termination of the business relationship. Service providers must therefore ensure that they conduct thorough due diligence on their customers to prevent money laundering, terrorist financing, and proliferation financing.
Additional Resources
The full text of the new regulations can be found in the Central Register of Laws (CENTRAL REGISTER OF LAWS) at: [insert link]
For more information on the new regulations, please contact the Supervisory Authority or a qualified legal professional.