Financial Crime World

Aruba’s Fight Against Money Laundering and Terrorist Financing: A Mixed Bag

A Review of Aruba’s Efforts by the Caribbean Financial Action Task Force (CFATF)

ORANJESTAD, ARUBA - The latest report from the CFATF has deemed Aruba’s efforts to combat money laundering and terrorist financing as “mixed”. While the country has made significant strides in strengthening its anti-money laundering and combating the financing of terrorism (AML/CFT) regime since 2008, there are still areas that require improvement.

Progress Made

According to the CFATF report, Aruba has:

  • Strengthened its AML/CFT regime
  • Implemented a risk-based approach to supervision
  • Demonstrated effective domestic cooperation and coordination
  • Identified high-risk sectors, including casinos, banks, real estate, and money transfer companies

Areas for Improvement

However, the CFATF report also identified several areas where Aruba needs to improve:

  • Implementation of terrorist financing and proliferation financing measures
  • Supervision of non-profit organizations
  • Transparency of legal persons and arrangements
  • Regulation of virtual asset service providers (VASPs)

Vulnerability of the Economy

Aruba’s economy, primarily based on tourism, is vulnerable to money laundering and terrorist financing. The country’s financial intelligence unit (FIU) has identified several sectors that are at high risk of money laundering.

Next Steps

To address these areas for improvement, Aruba should:

  • Implement measures to regulate VASPs
  • Improve transparency of legal persons and arrangements
  • Enhance supervision of non-profit organizations
  • Continue to implement a risk-based approach to supervision

Conclusion

While Aruba has made significant progress in combating money laundering and terrorist financing, there is still much work to be done. The CFATF report serves as a reminder of the importance of continued efforts to strengthen AML/CFT measures and ensure that the financial system remains safe from illicit activities.

Key Points:

  • Aruba’s AML/CFT regime has been deemed “mixed” by the CFATF
  • Areas for improvement include implementation of terrorist financing measures, supervision of non-profit organizations, and transparency of legal persons and arrangements
  • Regulation of VASPs is also a priority area for improvement
  • Aruba’s economy is vulnerable to money laundering and terrorist financing due to its reliance on tourism.