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Regulatory and International Cooperation Mechanisms in Aruba: Room for Improvement

A recent report by the Caribbean Financial Action Task Force (CFATF) has highlighted several areas where Aruba can improve its regulatory and international cooperation mechanisms to combat money laundering, terrorist financing, and proliferation financing.

Training Gaps and Confiscation Regime Weaknesses

According to the report, law enforcement agencies (LEAs) and prosecutors in Aruba have not received consistent training on conducting investigations and prosecutions related to terrorism financing. This lack of training may hinder efforts to disrupt potential activities.

Additionally, financial investigations are an essential part of combating money laundering and terrorist financing. However, there are weaknesses in the confiscation regime, including a lack of consistent training and maintenance of statistics.

Targeted Financial Sanctions Framework

Aruba has implemented a targeted financial sanctions (TFS) framework to combat terrorism financing, but there are weaknesses in the legislation governing its implementation. Additionally, reporting entities have expressed a need for further guidance on implementing TFS.

Non-Profit Organizations and Structural Deficiencies

The report highlights that Aruba’s law governing non-profit organizations (NPOs) has structural deficiencies that impact the effectiveness of the system. Despite these weaknesses, NPOs are conducting transactions through the financial system and may be vulnerable to money laundering and terrorist financing.

Key Findings

  • LEAs and prosecutors in Aruba need consistent training on conducting investigations and prosecutions related to terrorism financing.
  • There are weaknesses in the confiscation regime, including a lack of consistent training and maintenance of statistics.
  • The TFS framework has weaknesses in its legislation governing implementation.
  • Reporting entities need further guidance on implementing TFS.
  • Aruba’s law governing NPOs has structural deficiencies that impact the effectiveness of the system.

Recommendations

  • Provide LEAs and prosecutors with consistent training on conducting investigations and prosecutions related to terrorism financing.
  • Address weaknesses in the confiscation regime, including ensuring consistent training and maintenance of statistics.
  • Strengthen the TFS framework by revising its legislation governing implementation.
  • Provide reporting entities with further guidance on implementing TFS.
  • Reform Aruba’s law governing NPOs to ensure effective supervision and oversight.

Conclusion

By addressing these weaknesses, Aruba can improve its regulatory and international cooperation mechanisms and effectively combat money laundering, terrorist financing, and proliferation financing.