Financial Crime World

Aruba Financial Sanctions: Impact on Island’s Financial Institutions and Businesses

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Aruba has incorporated United Nations sanctions into its national legislation through the Sanctions State Ordinance 2006. This ordinance aims to address breaches of international laws and human rights, as well as combat terrorism.

Background

The Sanctions State Ordinance 2006 enables the government to freeze assets and impose financial restrictions on individuals and organizations deemed to be involved in terrorist activities or other harmful behaviors. The ordinance requires supervised institutions to stay up-to-date with the contents of the freezing lists and all changes thereto, as well as comply with the requirements and prohibitions set forth in sanctions regulations.

Requirements for Financial Institutions

Financial institutions are required to:

  • Freeze all funds and assets belonging to individuals and organizations listed by the United Nations regarding Al Qaeda and the Taliban, according to the Sanctions Decree Combat Terrorism and Financing Terrorism.
  • Freeze all funds or assets present in Aruba that belong directly or indirectly to individuals or entities mentioned in Annex II of UN Security Council Resolutions 1970 and 1973, according to the Sanctions Decree Libya 2011.
  • Freeze all funds and assets of persons and organizations mentioned in its annex, according to the Interim-State Decree on Priority Sanction Regimes, dated September 3, 2019.

Reporting Requirements

Financial institutions are obligated to:

  • Inform the Reporting Center Unusual Transactions (MOT) and the Central Bank of Aruba (CBA) immediately if they find that a designated entity is part of their customer base or is involved in a transaction.
  • Notify the CBA using a prescribed reporting form.

EU Sanctions Map

The EU Sanctions Map, a digital tool provided by the European Union, provides up-to-date information on current sanctions directives per country worldwide. This map is relevant to Aruba as it lists the EU sanctions that are applicable to the island through its national sanction state decrees.

Consequences of Non-Compliance

Experts warn that non-compliance with financial sanctions can have severe consequences for both financial institutions and businesses operating in Aruba. It is essential for all parties involved to remain vigilant and adhere to the strict requirements set forth in the Sanctions State Ordinance 2006.

Conclusion

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In conclusion, it is crucial for financial institutions and businesses operating in Aruba to understand and comply with the financial sanctions imposed by the government. Failure to do so can result in severe penalties and consequences.