International Cooperation Mechanisms Need Strengthening in Aruba

Aruba’s efforts to combat money laundering (ML) and terrorist financing (TF) are commendable, but weaknesses persist in key areas. A recent report by the Caribbean Financial Action Task Force (CFATF) highlights the need for improvement in international cooperation mechanisms.

Challenges Identified

• Lack of Consistent Training: Law enforcement agencies (LEAs) and prosecutors lack training on TF investigations and prosecutions, hindering effective implementation of TF-related policies and procedures.
• Financial Investigations: Aruba’s Asset Recovery Team (ART) needs better coordination and cooperation between LEAs, Financial Intelligence Unit (FIU), and Public Prosecution Office (PPO) to ensure effective confiscation of assets.
• Targeted Financial Sanctions: Implementation of targeted financial sanctions (TFS) against TF entities is not optimal due to weaknesses in legislation and lack of guidance for reporting entities.

Recommendations

1. Consistent Training: Provide consistent training for LEAs and prosecutors on TF investigations and prosecutions.
2. Improved Coordination: Improve coordination and cooperation between LEAs, FIU, and PPO for effective confiscation of assets.
3. Strengthened TFS: Strengthen implementation of TFS-TF by addressing weaknesses in legislation and providing guidance for reporting entities.
4. Transparency Mechanism: Establish a mechanism to ensure transparency of legal persons and arrangements.
5. Risk Assessments: Conduct risk assessments on virtual asset service providers (VASPs) and virtual assets (VAs).

Conclusion

While Aruba has made significant progress in strengthening its AML/CTF/PF regime, major improvements are needed in key areas. The government must prioritize addressing these weaknesses to ensure a robust and effective fight against ML and TF.

By implementing these recommendations, Aruba can strengthen its international cooperation mechanisms and further reduce the risks associated with ML and TF.