FATF Statements – June 2023

FIU-Aruba reiterates the importance that service providers stay abreast of the public statements that are published on the website of the Financial Action Task Force (FATF) in relation to jurisdictions that are under increased monitoring and high-risk jurisdictions subject to a call for action.

Responsibility of service providers in relation to jurisdictions that are under increased monitoring
Designated financial and non-financial service providers are required to take the FATF statement into consideration when conducting their risk analysis and to apply a risk-based approach. Thus, enhanced due diligence measures are not required nor should designated service providers resort to de-risking activities or cut-off customers.

Responsibility of service providers in relation to high-risk jurisdictions subject to a call for action
Pursuant to article 11 of the AML/CFT State Ordinance, designated financial and non-financial service providers are required to conduct enhanced customer due diligence if a business relationship or a transaction by its nature entails a higher risk of money laundering, terrorist financing or financing of proliferation. The identification of high-risk countries by the FATF increases the level of AML/CFT/CPF risk in a business relationship or a transaction. Service providers should take the necessary measures to mitigate the increased risk.

Considering the above and in line with the risk-based approach, it is important to remain alert for red flags. If there is reason to assume that a transaction (i.e. financial transaction/service) is related to AML/CFT/CPF, this should be reported promptly to FIU-Aruba in an unusual transaction report under the subjective indicator 130201 or 130202.

Additionally, FIU-Aruba reiterates the importance of conducting a ‘sanctions-check’ to determine whether transaction(s) must be reported objectively under indicator 130102 (also see: “Aanwijzing geconsolideerde lijst VNSC” and “Aanwijzing EU Sancties Bevriezingsmaatregelen”) and to determine whether national freezing measures are applicable.

Click on the following link to find the FATF statements:

Jurisdictions under Increased Monitoring – 23 June 2023 (fatf-gafi.org)

High-Risk Jurisdictions subject to a Call for Action – June 2023 (fatf-gafi.org)

Should there be any questions, please feel free to contact us.