Financial Crime World

Combating Financial Terrorism in Aruba: AML/CTF Supervisors Take Center Stage

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In a bid to curb financial terrorism, Aruba’s Financial Intelligence Unit (FIU Aruba) has been working tirelessly to ensure that the island nation is not used as a conduit for illicit activities. As part of its efforts, FIU Aruba has implemented strict Anti-Money Laundering and Combating Financing of Terrorism (AML/CTF) regulations.

Compliance with AML/CTF Regulations in Aruba

Aruba’s AML/CTF system is based on the Financial Action Task Force’s 40 Recommendations to Combat Money Laundering, Terrorist Financing, and Proliferation. According to the State Ordinance for the Prevention and Combating of Money Laundering and Terrorist Financing (AML/CFT State Ordinance), financial or designated non-financial service providers must adhere to certain requirements.

Reporting Obligations

In Aruba, financial institutions are required to report any unusual transactions to FIU Aruba. An unusual transaction is defined as one that has been executed or planned and appears irregular based on objective or subjective measures.

Objective Measures

  • Transactions reported to the police or ministry of justice
  • Those made by or on behalf of individuals or entities listed on verified sanctions lists
  • Wire transfers above 500,000 Aruban Florins (Afl)
  • Cash transactions above 25,000 Afl
  • Casino transactions above 5,000 Afl

Subjective Measures

Transactions that could potentially be related to money laundering or terrorism financing are also considered unusual. Examples include:

  • Transactions with suspicious characteristics
  • Those that lack transparency

What You Need to Report

When reporting an unusual transaction, financial institutions must provide the following information:

  • The type and number of the client’s identity document
  • The type, timing, and location of the transaction
  • The sum, place of origin, and source of funds used in the transaction
  • Circumstances that suggest the transaction is unusual

Aruba’s AML/CTF Efforts

Despite being on the Financial Action Task Force (FATF) List of Countries with strategic AML deficiencies, Aruba has been working to address these issues. The country’s AML/CTF supervisors are committed to ensuring that financial institutions comply with regulations and report any suspicious transactions.

As the global fight against financial terrorism continues, Aruba’s efforts to combat money laundering and financing of terrorism serve as a model for other nations. By staying vigilant and implementing robust AML/CTF measures, Aruba is demonstrating its commitment to maintaining a safe and secure financial system.