Mutual Evaluation Report: 2009
C
LC
PC
NC
N/A
    C  -  Fully Compliant ,   
    LC  -  Largely Compliant,    
    PC  -  Partially Compliant    
    NC  -  Non-Compliant
2
7
13
25
2
Legal Systems
 
1. Money Laundering Offence
LC
 
14. Protection & no tipping-off
PC
2. ML offence – mental element and
corporate liability
LC
 
15. Internal controls,
compliance & audit
NC
3. Confiscation and provisional
measures
PC
 
16. DNFBP – R.13-15 & 21
NC
4. Secrecy laws consistent with the
Recommendations
LC
 
17. Sanctions
NC
5. Customer due diligence
NC
 
18. Shell banks
NC
6. Politically exposed persons
NC
 
19. Other forms of reporting
C
7. Correspondent banking
NC
 
20. Other NFBP & secure
transaction techniques
LC
8. New technologies & non
face-to-face business
NC
 
21. Special attention for
higher risk countries
NC
9. Third parties and introducers
NC
 
22. Foreign branches &
subsidiaries
N/A
10. Record keeping
LC
 
23. Regulation, supervision
and monitoring
NC
11. Unusual transactions
PC
 
24. DNFBP - regulation,
supervision and monitoring
NC
12. Designated Non-Financial
Businesses and Professions – R.5,
6, 8-11
NC
 
25. Guidelines & Feedback
PC
13. Suspicious transaction reporting
PC
     
Institutional and other
measures
 
26. The FIU
PC
 
31. National co-operation
PC
27. Law enforcement authorities
PC
 
32. Statistics
NC
28. Powers of competent authorities
LC
 
33. Legal persons –
beneficial owners
NC
29. Supervisors
NC
 
34. Legal arrangements –
beneficial owners
N/A
30. Resources, integrity and training
NC
 
 
 
International Co-operation
 
35. Conventions
PC
 
38. MLA on confiscation and
freezing
PC
36. Mutual legal assistance (MLA)
PC
 
39. Extradition
LC
37. Dual criminality
C
 
40. Other forms of
co-operation
PC
Nine Special
Recommendations
 
SR.I Implement UN instruments
NC
 
SR VI AML requirements for
money/value transfer services
NC
SR.II Criminalise terrorist financing
NC
 
SR VII Wire transfer rules
NC
SR.III Freeze and confiscate terrorist
assets
NC
 
SR.VIII Non profit
organisations
NC
SR.IV Suspicious transaction
reporting
PC
 
SR.IX Cross Border
Declaration & Disclosure
NC
SR.V International co-operation
NC
 
 
 
ARUBA
KnowYourCountry
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FATF 49 RECOMMENDATIONS
In February 2014, the FATF recognised that Aruba had made significant
progress in addressing the deficiencies identified in the 2009 mutual
evaluation report and could be removed from the regular follow-up
process. The decision by the FATF to remove a country from the regular
follow-up process is based on procedures agreed in October 2009.

The February 2014 follow-up report contains a detailed description and
analysis of the actions taken by Aruba in respect of the core and key
Recommendations rated PC or NC in the 2009 mutual evaluation report.

Key measures that have been taken by Aruba are:

Amending the Criminal Code to designate terrorist financing as an
independent offence.

Enacting the State Ordinance for the Prevention and Combat of Money
Laundering and Terrorist Financing (AML/CFT State Ordinance).  The
AML/CFT State Ordinance remedies many important deficiencies and
inconsistencies identified during the 2009 assessment in relation to
preventive measures and the allocation of supervisory duties of the
Central Bank of Aruba and the financial intelligence unit of Aruba, the
Meldpunt Ongebruikelijke Transacties.

Regulating the freezing of funds and other assets of persons and
institutions deemed to be related to terrorism and terrorist financing
through the introduction of the State Decree Combating Terrorism and
Terrorist Financing.

Adopting State Ordinances, Decrees, Ministerial Regulations, and other
mechanisms to implement the obligations set out in the AML/CFT State
Ordinance and the State Decree Combating Terrorism and Terrorist
Financing.

Conducting an AML/CFT National Risk Assessment.  
The 40 Recommendations

A. Legal Systems

Scope of the criminal offence of money laundering (Recommendations 1, 2)
Provisional measures and confiscation (Recommendation 3)

B. Measures to be taken by Financial Institutions and Non-Financial Businesses and
Professions to prevent Money Laundering and Terrorist Financing

(Recommendation 4)

Customer due diligence and record-keeping (Recommendations 5 - 12)
Reporting of suspicious transactions and compliance (Recommendations 13-16)
Other measures to deter money laundering and terrorist financing
(Recommendations 17-20)
Measures to be taken with respect to countries that do not or insufficiently comply
with the FATF Recommendations (Recommendations 21, 22)
Regulation and supervision (Recommendations 23-25)

C. Institutional and other measures necessary in systems for combating Money
Laundering and Terrorist Financing

Competent authorities, their powers and resources (Recommendations 26-32)
Transparency of legal persons and arrangements (Recommendations 33, 34)

D. International Co-operation

(Recommendation 35)

Mutual legal assistance and extradition (Recommendations 36-39)
Other forms of co-operation (Recommendation 40)



IX Special Recommendations

Recognising the vital importance of taking action to combat the financing of
terrorism, the FATF has agreed these Recommendations, which, when combined
with the FATF Forty Recommendations on money laundering, set out the basic
framework to detect, prevent and suppress the financing of terrorism and terrorist
acts.

The 40+9 Recommendations, together with their interpretative notes, provide the
international standards for combating money laundering (ML) and terrorist financing
(TF).

The FATF revised the 40 and IX Recommendations.  The revision of the FATF
Recommendations was adopted and publised in February 2012.  Click here to go to
the 2012 FATF Recommendations.


I.       Ratification and implementation of UN instruments
II.      Criminalising the financing of terrorism and associated money laundering
III.     Freezing and confiscating terrorist assets
IV.      Reporting suspicious transactions related to terrorism
V.       International co-operation
VI.      Alternative remittance
VII.     Wire transfers
VIII.    Non-profit organisations
IX.      Cash couriers


I. Ratification and implementation of UN instruments

Each country should take immediate steps to ratify and to implement fully the 1999
United Nations International Convention for the Suppression of the Financing of
Terrorism.

Countries should also immediately implement the United Nations resolutions
relating to the prevention and suppression of the financing of terrorist acts,
particularly United Nations Security Council Resolution 1373.

II. Criminalising the financing of terrorism and associated money laundering

Each country should criminalise the financing of terrorism, terrorist acts and terrorist
organisations. Countries should ensure that such offences are designated as
money laundering predicate offences.

III. Freezing and confiscating terrorist assets

Each country should implement measures to freeze without delay funds or other
assets of terrorists, those who finance terrorism and terrorist organisations in
accordance with the United Nations resolutions relating to the prevention and
suppression of the financing of terrorist acts.

Each country should also adopt and implement measures, including legislative ones,
which would enable the competent authorities to seize and confiscate property that
is the proceeds of, or used in, or intended or allocated for use in, the financing of
terrorism, terrorist acts or terrorist organisations.

IV. Reporting suspicious transactions related to terrorism

If financial institutions, or other businesses or entities subject to anti-money
laundering obligations, suspect or have reasonable grounds to suspect that funds
are linked or related to, or are to be used for terrorism, terrorist acts or by terrorist
organisations, they should be required to report promptly their suspicions to the
competent authorities.

V. International Co-operation

Each country should afford another country, on the basis of a treaty, arrangement
or other mechanism for mutual legal assistance or information exchange, the
greatest possible measure of assistance in connection with criminal, civil
enforcement, and administrative investigations, inquiries and proceedings relating
to the financing of terrorism, terrorist acts and terrorist organisations.

Countries should also take all possible measures to ensure that they do not provide
safe havens for individuals charged with the financing of terrorism, terrorist acts or
terrorist organisations, and should have procedures in place to extradite, where
possible, such individuals.

VI. Alternative Remittance

Each country should take measures to ensure that persons or legal entities,
including agents, that provide a service for the transmission of money or value,
including transmission through an informal money or value transfer system or
network, should be licensed or registered and subject to all the FATF
Recommendations that apply to banks and non-bank financial institutions. Each
country should ensure that persons or legal entities that carry out this service
illegally are subject to administrative, civil or criminal sanctions.

VII. Wire transfers

Countries should take measures to require financial institutions, including money
remitters, to include accurate and meaningful originator information (name, address
and account number) on funds transfers and related messages that are sent, and
the information should remain with the transfer or related message through the
payment chain.

Countries should take measures to ensure that financial institutions, including
money remitters, conduct enhanced scrutiny of and monitor for suspicious activity
funds transfers which do not contain complete originator information (name,
address and account number).

VIII. Non-profit organisations

Countries should review the adequacy of laws and regulations that relate to
entities that can be abused for the financing of terrorism. Non-profit organisations
are particularly vulnerable, and countries should ensure that they cannot be
misused:

(i)          by terrorist organisations posing as legitimate entities;
(ii)         to exploit legitimate entities as conduits for terrorist financing, including for
the purpose of escaping asset freezing measures; and
(iii)         to conceal or obscure the clandestine diversion of funds intended for
legitimate purposes to terrorist organisations.

IX. Cash Couriers

Countries should have measures in place to detect the physical cross-border
transportation of currency and bearer negotiable instruments, including a
declaration system or other disclosure obligation.

Countries should ensure that their competent authorities have the legal authority
to stop or restrain currency or bearer negotiable instruments that are suspected to
be related to terrorist financing or money laundering, or that are falsely declared or
disclosed.

Countries should ensure that effective, proportionate and dissuasive sanctions are
available to deal with persons who make false declaration(s) or disclosure(s). In
cases where the currency or bearer negotiable instruments are related to terrorist
financing or money laundering, countries should also adopt measures, including
legislative ones consistent with Recommendation 3 and Special Recommendation
III, which would enable the confiscation of such currency or instruments.