Aruba Under Fire: Financial Sanctions Hammering Local Economy

The Aruban government has been imposing financial sanctions on individuals and entities deemed to be in violation of international laws and human rights, or those suspected of being involved in terrorist activities. While the intention is to combat terrorism and promote human rights, experts warn that these measures could have devastating consequences for the local economy.

Background

According to Sanctions State Ordinance 2006, UN sanctions can be incorporated into Aruban legislation, allowing the government to freeze assets and funds of individuals and organizations listed by the United Nations. The Domestic list, established by Ministerial Decision in November 2013, consists of entities subject to Council Regulation (EU) No. 2580/2001.

Sanctions Decrees

The Sanctions Decree Combat Terrorism and Financing Terrorism requires financial institutions to freeze all funds and assets of individuals and organizations linked to Al Qaeda and the Taliban. The Sanctions State Decree Libya 2011 also requires the freezing of assets belonging to individuals and entities listed in Annex II of UN Security Council Resolutions 1970 and 1973.

Obligations

Financial institutions are obligated to:

• Monitor the contents of the freezing lists
• Notify authorities immediately if they discover any designated entities in their customer base
• Report suspicious transactions

The CBA (Central Bank of Aruba) has developed a prescribed reporting form for notifications.

EU Sanctions Map

In an effort to streamline information dissemination, the European Union has launched the “EU Sanctions Map”, a digital tool providing real-time updates on EU sanction directives worldwide. The map can be accessed at www.sanctionsmap.eu.

Consequences for the Economy

While the sanctions are intended to combat terrorism and promote human rights, experts warn that they could have unintended consequences for the Aruban economy. Local businesses may struggle to access international funds, leading to decreased investment and economic stagnation.

Balancing Commitments

As the financial sanctions continue to take their toll on the Aruban economy, authorities must balance their commitment to combating terrorism with the need to protect the local economy. The impact of these measures will be closely watched as the island nation navigates this complex issue.

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