1. Financial Intelligence Unit of Aruba MOT
Agenda
Case
Red Flags
MOT-Aruba
From Unusual to Suspicious
FAQ
Real Estate Agents August 16th 2013 1

2. Financial Intelligence Unit of Aruba MOT
Case
Real Estate Agents 2

3. Financial Intelligence Unit of Aruba MOT
Case
Mr. Lucky Luke was declared bankrupt in 2007.
In 2009 he was appointed as director of a hair salon in Aruba: Glamour NV. The shareholders are not registered at the Chamber of Commerce (CoC).
In 2010 he was also appointed as director of a beach equipment rental company: Splash NV. The shareholders of this company are neither registered at CoC.
Mr. Luke as director has total authority of these companies.
Mr. Luke, in his capacity as director of Glamour NV approached on April 30, 2013 a real estate agent with the request to purchase a home with a pool in the residence area ‘Malmok’. The real estate agent informed the director that there is a house for sale in Malmok. The asking price is $ ,=.
Mr. Luke viewed the house several times with his partner and children. 3

4. Financial Intelligence Unit of Aruba MOT
Purchase agreement, (between seller and Mr. Luke) dated August 10, 2013: The house is sold for the amount of $ ,=. Initial deposit of the amount of $ ,= is made by means of a transfer from Splash NV (Banco Arubano; account # 12345) to the seller (Banco National; account # 67890) on August 13, This transfer is not recorded neither in the deed nor purchase agreement. Mr. Luke informed the seller and agent spontaneously that this amount concerned a loan from Splash to Glamour NV. The deed of transfer will take place at the notary on September 13, 2013. 4 4

5. Financial Intelligence Unit of Aruba MOT
Red Flags Case 5

6. Financial Intelligence Unit of Aruba MOT
Case
Mr. Lucky Luke was declared bankrupt in 2007.
The fact that Mr. Luke was declared bankrupt and wanted to buy a house for $ ,= should raise some concerns.
In 2009 he was appointed as director of a hair salon in Aruba: Glamour NV. The shareholders are not registered at the Chamber of Commerce (CoC).
In 2010 he was also appointed as director of a beach equipment rental company: Splash NV. The shareholders of this company are neither registered at CoC.
Mr. Luke as director has total authority of these companies.
The fact that Mr. Luke has total authority of both companies in combination with the type of business (cash based) might raise some concerns. 6 6

7. Financial Intelligence Unit of Aruba MOT
Mr. Luke, in his capacity as director of Glamour NV approached on April 30, 2013 a real estate agent with the request to purchase a home with a pool in the residence area ‘Malmok’. The real estate agent informed the director that there is a house for sale in Malmok. The asking price is $ ,=. The fact that Mr. Luke in his capacity as director of Glamour NV would like to buy a home residence. Mr. Luke viewed the house several times with his partner and children. 7 7

8. Financial Intelligence Unit of Aruba MOT
Purchase agreement, (between seller and Mr. Luke) dated August 10, 2013: The house is sold for the amount of $ ,=. The fact that the agreed price is far below the asking price. Initial deposit of the amount of $ ,= is made by means of a transfer from Splash NV (Banco Arubano; account # 12345) to the seller (Banco National; account # 67890) on August 13, This transfer is not recorded neither in the deed nor purchase agreement. Mr. Luke informed the seller and agent spontaneously that this amount concerned a loan from Splash to Glamour NV. The fact that an Initial deposit of the amount of $ ,= is made by means of a transfer from Splash NV direct to the seller. The deed of transfer will take place at the notary on September 13, 2013. 8 8

9. Financial Intelligence Unit of Aruba MOT
Red Flags I
The buyer of the property let a lower price be recorded in the deed than the agreed price. The deference will be settled between the buyer and seller privately.
The purchase or sale of property is made by another.
Different transactions are being made in order to hide origin.
The buyer shows no interest in the past or current occupation of the apartment complex similar kind of property. 9 9

10. Financial Intelligence Unit of Aruba MOT
Red Flags II
The owner of property changes quickly without a profit and client is not interested in making a profit.
The client shows no or little interest in the property/ location before buying. Nor doesn’t he show any interest in possible necessary repairs.
The client is reluctant or has objections to have personal contact with the real estate agent or notary. 10 10

11. Financial Intelligence Unit of Aruba MOT
MOT-Aruba
Founded in 1996
Autonomous and independent
Administrative organization
FIU’s tasks
Legislation (LWTF)
(Inter)national Cooperation 11

12. Financial Intelligence Unit of Aruba MOT
From Unusual to Suspicious
Unusual
transaction
Reporting entity
database
FIU analysis
Request from public prosecutor
Request from foreign FIU
Automatic match ( )
Black box
Law enforcement
State security services
Public Prosecutor’s Office
Suspicious transaction 12

13. Financial Intelligence Unit of Aruba MOT
FAQ
Reporting Obligations &
Reporting Procedures 13

14. Financial Intelligence Unit of Aruba MOT
FAQ I
Who should report unusual transactions reports? (Article 1LWTF 3)
A natural person, legal person or corporation which on a commercial or professional basis trades on or acts as an intermediary in the purchase and sale of immobile objects, vehicles, ships, aircraft, objects of arts, antiquities, and the rights to which these objects can be subjected; 14

15. Financial Intelligence Unit of Aruba MOT
FAQ II
Do I need to register with MOT-Aruba?
How to submit an Unusual Transaction Report?
What are Unusual Transactions?
What is the difference between objective and subjective indicators?
Do i have to report an Unusual Transaction that was not completed?
What does ‘a combination of financial acts’ mean?
What is the reporting period? 15

16. Financial Intelligence Unit of Aruba MOT
FAQ III
Wat are the benefits of reporting Unusual Transaction reports?
May I inform my client about an (intended) Unusual Transaction report made to the MOT?
What are the consequences of not reporting? Are there penalties associated with the failure to report?
What are Suspicious Transactions?
In the case transacties are reported to the police or the public prosecutor do I also have to report these transactions to the MOT?
Should I still report if another reporting entity has reported already the same Unusual Transaction? 16

17. Financial Intelligence Unit of Aruba MOT
Thank you for your attention 17