Financial Crime World

SHAREHOLDER ALERT: New Regulations on Customer Due Diligence Come into Effect

As of today, a new set of regulations aimed at preventing money laundering, terrorist financing, and proliferation financing has come into effect in Aruba. The regulations require service providers to perform customer due diligence (CDD) on customers who engage in transactions above certain thresholds.

New Regulations: What You Need to Know

The new regulations apply to financial institutions, insurance companies, and other businesses that provide financial services. Service providers must conduct CDD on customers who engage in transactions exceeding Afl. 5,000 or equivalent in foreign currency.

  • Transaction Thresholds: Service providers must perform customer due diligence on customers who engage in transactions above Afl. 5,000 or equivalent in foreign currency.
  • Simplified Procedures: Simplified CDD procedures are allowed for certain customers, such as:
    • Public limited companies listed on recognized stock exchanges
    • Government entities
    • Financial institutions subject to international standards for anti-money laundering measures

Consequences of Non-Compliance

Service providers who fail to comply with the new regulations risk being prohibited from establishing a business relationship or carrying out a transaction. Furthermore, they may be held liable for any damages caused by non-compliance.

Strengthening Aruba’s Efforts

The new regulations are aimed at strengthening Aruba’s efforts to combat financial crimes and maintain its reputation as a reputable financial hub in the region.

Key Takeaways

  • Service providers must conduct customer due diligence on customers who engage in transactions above Afl. 5,000 or equivalent in foreign currency.
  • Simplified CDD procedures are allowed for certain customers.
  • Failure to comply with the regulations may result in prohibition from establishing a business relationship or carrying out a transaction.
  • Service providers who fail to comply with the regulations may be held liable for any damages caused by non-compliance.