Countries/Jurisdictions of Primary Concern - Aruba
Aruba is an autonomous entity within the Kingdom of the Netherlands. Aruba has sovereignty on most internal matters but defers to the Kingdom in matters of defense, foreign policy, final judicial review, human rights, and good governance. Aruba is not considered a regional financial center. Because of its location, Aruba is a transshipment point for drugs from South America bound for the United States and Europe, and a transshipment point for currency flowing in the opposite direction. Bulk cash smuggling represents a risk due to the location of Aruba between North and South America. Money laundering is primarily related to proceeds from illegal narcotics trafficked by domestic and foreign criminal organizations, and occurs through real estate purchases and international tax shelters. There is no significant black market for smuggled goods on Aruba.
The Free Zone Aruba NV (FZA) is a government-owned limited liability company with three locations. All companies with free zone status are reviewed and controlled by the FZA, which also has an integrity system in place to deter illegal activities, including smuggling and money laundering. Financial services, banks, and insurance companies are not permitted to operate in the free zones.
There are 13 casinos, and online gaming is allowed under a licensing and reporting system.
For additional information focusing on terrorist financing, please refer to the Department of State’s Country Reports on Terrorism, which can be found at: http://www.state.gov/j/ct/rls/crt/
Do FINANCIAL INSTITUTIONs engage in currency transactions related to international narcotics trafficking that include significant amounts of US currency; currency derived from illegal sales in the U.S.; or illegal drug sales that otherwise significantly affect the U.S.: NO
criminalizATION OF money laundering:
“All serious crimes” approach or “list” approach to predicate crimes: All serious crimes
Are legal persons covered: criminally: YES civilly: NO
Know-your-customer (KYC) rules:
Enhanced due diligence procedures for PEPs: Foreign: YES Domestic: YES
KYC covered entities: Banks, life insurance companies and insurance brokers, money transfer companies, investment companies and brokers, factoring and leasing companies, trust and company service providers, casinos, lawyers, civil notaries, accountants, tax advisors, realtors, and dealers in precious metals, stones, and other high-value objects
Number of STRs received and time frame: 1,501: January - June 2013
Number of CTRs received and time frame: 7,250: January - June 2013
STR covered entities: Banks, life insurance companies and insurance brokers, money transfer companies, investment companies and brokers, factoring and leasing companies, lawyers, civil notaries, accountants, tax advisors, casinos, dealers in jewels and precious metals, realtors, and dealers in art, antiques, vehicles, aircraft, and ships
money laundering criminal Prosecutions/convictions:
Prosecutions: 37: December 1, 2012 – October 13, 2013
Convictions: 22: November 10, 2012 – October 13, 2013
Records exchange mechanism:
With U.S.: MLAT: YES Other mechanism: YES
With other governments/jurisdictions: YES
Aruba is a member of the Caribbean Financial Action Task Force (CFATF), a FATF-style regional body. Its most recent mutual evaluation can be found at: https://www.cfatf-gafic.org/index.php/documents/cfatf-mutual-evaluation-reports/aruba-2
Enforcement and implementation issues and comments:
Aruba’s money laundering laws do not cover proceeds generated from counterfeiting and piracy of products, insider trading, market manipulation, many types of environmental crimes, or fraud. Aruba does not have a suspicious transaction reporting system but rather a broader unusual transaction reporting (UTR) system. Service providers are required to report large cash transactions of $14,000 or more, wire transactions of $278,000 or more, other unusual transactions, and transactions suspected to be related to money laundering or terrorist financing, including those related to persons or groups listed on the UN sanctions list. Aruba complies with EU-imposed sanctions as part of the Kingdom of the Netherlands
Aruba amended the Criminal Code to designate terrorist financing as a criminal offense, and the government can freeze funds and other assets belonging to individuals and institutions that are related to terrorism and terrorist financing under the State Decree Combating Terrorism and Terrorist Financing. Aruba also enacted a State Ordinance for the Prevention of and Combating Money Laundering and Terrorist Financing (AML/CFT State Ordinance) with new rules for the identification and verification of clients and the reporting of unusual transactions to prevent and combat money laundering and terrorist financing when providing certain services. Non-regulated financial service providers (including insurance brokers, investment brokers, factoring and leasing companies) and designated non-financial businesses and professions (including lawyers, civil notaries, tax advisors, accountants, jewelers, high-value goods dealers, casinos) must comply with the requirements of the AML/CFT State Ordinance. They must also register with the Central Bank of Aruba.
The Kingdom of the Netherlands, of which Aruba is an autonomous constituent part, may arrange for the ratification of any convention to be extended to Aruba. The Kingdom extended the application to Aruba of the 1988 UN Drug Convention in 1999; the UN International Convention for the Suppression of the Financing of Terrorism in 2005; and the UN Convention against Transnational Organized Crime in 2007. The Kingdom has not yet extended the application of the UN Convention against Corruption to Aruba.