Financial Crime World

Aruba Financial Institutions Must Stay Ahead of Sanctions Regulations

Sanctions are an important tool used by the United Nations (UN) to address breaches of international laws and human rights. In Aruba, financial institutions must be aware of the latest sanctions regulations and updates to prevent any potential breaches.

The Importance of Staying Compliant

According to the Sanctions State Ordinance 2006, sanctioned institutions must stay up-to-date with changes in freezing lists and ensure compliance with sanctions regulations in a timely and adequate manner. Failure to comply can result in severe consequences.

Aruba’s Sanctions Decrees

Aruba has implemented several Sanctions Decrees, including:

  • Sanction Decree Combat Terrorism and Financing Terrorism: requires the freezing of funds and assets belonging to individuals and organizations linked to Al Qaeda and the Taliban.
  • Sanctions Decree Libya 2011: freezes funds and assets owned by natural persons, legal entities, or other entities mentioned in UN Security Council Resolutions.

Priority Sanction Regimes

The Interim-State Decree on priority sanction regimes, dated September 3, 2019, requires the freezing of funds and assets of individuals and organizations mentioned in its annex. Financial institutions must take adequate measures to ensure they are aware of these regulations and comply with them in a timely manner.

Obligations for Financial Institutions

Financial institutions in Aruba have the following obligations:

  • Stay informed: keep abreast of changes in freezing lists.
  • Comply with sanctions regulations: ensure compliance with sanctions regulations in a timely and adequate manner.
  • Report changes: inform the Reporting Center Unusual Transactions (MOT) and the Central Bank of Aruba (CBA) immediately if a designated entity is part of their customer base.

The EU Sanctions Map

The CBA has introduced the “EU Sanctions Map”, a digital tool providing up-to-date information on EU sanction directives per country. The map lists the sanctions applicable to Aruba, which are mentioned in the National Sanction State Decrees.

Conclusion

In summary, Aruban financial institutions must prioritize compliance with sanctions regulations to avoid any potential breaches and consequences. It is essential for them to stay informed about changes in freezing lists and ensure timely compliance with these regulations.