The Aruban AML/CFT framework is based on the 40 Recommendations to combat money laundering and the financing of terrorism & proliferation published by the Financial Action Task Force (FATF).
REVISED Handbook for the prevention and detection of money laundering and financing of terrorism
The CBA issues a revised version of its Handbook for the prevention and detection of money laundering and financing of terrorism (AML/CFT Handbook). As of January 1, 2020, the AML/CFT Handbook applies to all financial service providers and all designated non-financial service providers, as defined in section 1 of the AML/CFT State Ordinance. The revisions include, inter alia, an (overall) more risk-based-approach vis-à-vis the requirements of the AML/CFT State Ordinance, detailed guidelines on (conducting) the Business Risk Assessment, inclusion of (additional) information regarding funds transfers, sanctions, terrorist financing and proliferation financing, a requirement to have a money laundering compliance officer who is based in Aruba, as well as specific risk indicators per sector. The AML/CFT Handbook consists of:
- Statutory requirements: paraphrasing provisions in the AML/CFT State Ordinance or “LWTF” and/or other relevant legislation;
- Regulatory requirements: providing directives of the CBA regarding the application of the AML/CFT State Ordinance in accordance with section 48 of the AML/CFT State Ordinance;
- Guidance notes: presenting ways to comply with the Statutory and Regulatory requirements.
The AML/CFT Handbook should always be read in conjunction with the official text of the AML/CFT State Ordinance (in the Dutch language). It replaces the AML/CFT Handbook of June 1, 2011, as well as the Guidance Notes for designated non-financial service providers of June 30, 2011.
The CBA emphasizes that the AML/CFT Handbook is not to be used as an internal AML/CFT-procedures manual.
AML/CFT State Ordinance
The State Ordinance on the Prevention and Combating Money Laundering and Terrorist Financing (AML/CFT State Ordinance) contains provisions regarding:
- customer due diligence (CDD)
- reporting of unusual transactions
- record keeping
- supervision and enforcement
Designated non-financial service providers (including lawyers, civil notaries, tax advisors, accountants, jewelers, high value dealers, casinos) and other service providers (including investment brokers, factoring and leasing companies) must comply with the requirements of the AML/CFT State Ordinance. They must also register with the CBA.
State Ordinance on the Prevention and Combating Money Laundering and Terrorist Financing Transitional provisions (Dutch, English)
Click here for the Enactment Ordinance State Ordinance for the Prevention and Combating of Money Laundering and Terrorist Financing (or in Dutch)
Related decrees and regulations
Further to the AML/CFT State Ordinance, the following subordinate legislation applies:
- State Decree Wire Transfers (Landsbesluit regeling geldelijke overmakingen) (in English) (in Dutch)
- State Decree regarding the principles for administrative enforcement AML/CFT State Ordinance (Landsbesluit grondslagen bestuurlijke handhaving LWTF) (in English) (in Dutch)
- Regulation designated stock exchanges AML/CFT State Ordinance (Regeling erkende aandelenbeurzen LWTF) (in English) (in Dutch).
- Regulation designated introduction countries AML/CFT State Ordinance (Regeling erkende introductielanden LWTF) (in English)(in Dutch).
- Regulation verification documents AML/CFT State Ordinance (Regeling verificatiedocumenten LWTF) (in English) (in Dutch).
- Relevant indicator regulations.(AB 2012 no. 23, AB 2012 no. 47)
- Regulation Ultimate Beneficial Owner AML/CFT State Ordinance (Regeling uiteindelijk belanghebbende LWTF) (in Dutch, English) and Explanatory Notes (in Dutch, English)
AML/CFT Handbook
The Handbook for the prevention and detection of money laundering and combating the financing of terrorism for financial and trust services business regulated by the CBA (AML/CFT Handbook) describes the statutory requirements set out in the AML/CFT State Ordinance, provides mandatory directives of the CBA regarding the application of the AML/CFT State Ordinance (regulatory requirements) and finally presents ways of complying with the statutory and regulatory requirements (guidance notes).