The Council of Europe’s Conference of the Parties has recently released updated assessments evaluating the compliance of Aruba (The Netherlands) and Morocco with the provisions of the Criminal Asset Recovery Convention. These assessments, published in January 2025, provide a detailed overview of how both jurisdictions are implementing the convention’s provisions related to the reversal of the burden of proof, confiscation of proceeds from crime, and a range of anti-money laundering (AML) measures.

Introduction to the Criminal Asset Recovery Convention

The Council of Europe Convention on Laundering, Search, Seizure, and Confiscation of the Proceeds from Crime and the Financing of Terrorism (commonly referred to as the “Warsaw Convention”) is a critical legal framework aimed at combating money laundering and terrorism financing. First signed in 2005, this convention is the first international treaty that integrates both prevention and control of these financial crimes.

One of the key provisions of the convention is the ability to reverse the burden of proof in confiscation proceedings. This shift helps ensure that criminals cannot retain illegally acquired assets, even if it is difficult to directly prove the origins of these funds. Additionally, the convention emphasizes the need for robust measures in managing frozen or seized property, the monitoring of suspicious banking activities, and corporate liability for money laundering offences.

These updated reviews of Aruba and Morocco are significant because they mark the first time that these jurisdictions have been assessed under the Convention’s monitoring process. The assessments cover several important aspects, including the management of seized property, banking operations monitoring, the money laundering offence itself, corporate responsibility, and international recidivism.

Assessment of Morocco’s Compliance

Morocco’s assessment comes after the country formally adopted the convention on August 1, 2022. The evaluation revealed that Morocco has made significant strides in aligning its laws and practices with the convention’s requirements. The country has shown progress in managing frozen or seized assets and strengthening the corporate liability framework for money laundering offences. However, the report also identifies areas where further improvements are needed.

One of the key recommendations for Morocco is to enhance its mechanisms for postponing suspicious transactions. This measure is crucial in preventing the movement of illicit funds through the financial system. The report suggests that Moroccan authorities should adopt more proactive measures to halt such transactions at earlier stages. Additionally, improvements in the sharing and return of confiscated property are also highlighted as areas for improvement.

Despite these recommendations, Morocco’s overall commitment to the principles of the Warsaw Convention is evident, and the country is encouraged to continue refining its processes to ensure full compliance with international AML and CFT standards.

Aruba’s Compliance Assessment

Aruba’s evaluation follows the Netherlands’ decision to extend the application of the Warsaw Convention to the territory. The assessment of Aruba’s compliance is particularly notable because the jurisdiction has not previously been subject to such an evaluation. As part of the Kingdom of the Netherlands, Aruba has been closely aligned with European Union standards for combating money laundering and terrorist financing.

The report highlights Aruba’s strong legal framework in managing frozen assets and its commitment to improving its monitoring of banking activities. However, like Morocco, there are areas where Aruba needs to enhance its systems. One of the key areas identified is the management of confiscated property, particularly in ensuring that assets are handled and returned in a manner that complies with the provisions of the convention.

Aruba is also encouraged to further develop its mechanisms for addressing corporate liability in cases of money laundering. The evaluation stresses the importance of holding legal persons accountable for illicit financial activities, which would serve to further deter money laundering and enhance the integrity of the financial system.

Key Provisions of the Warsaw Convention

The Warsaw Convention introduced several significant changes to international anti-money laundering (AML) and counter-financing of terrorism (CFT) standards. The key provisions of the treaty include:

• Reversal of the Burden of Proof: In confiscation proceedings, the burden of proof can be shifted to the defendant, meaning that individuals must demonstrate that their assets were lawfully acquired.
• Frozen and Seized Property Management: National authorities are tasked with the management of property that has been seized as a result of criminal activity, ensuring that it is preserved, and where possible, returned to its rightful owners.
• Monitoring of Banking Operations: The convention stresses the importance of monitoring banking operations as a tool for investigating money laundering and financing of terrorism.
• Corporate Liability: The legal framework holds corporations accountable for money laundering offences, making it easier to address systemic issues within financial institutions.
• Postponement of Suspicious Transactions: Authorities can halt suspicious transactions early, preventing illicit funds from moving through the financial system.
• Sharing and Return of Confiscated Property: The convention emphasizes the importance of international cooperation in the return of confiscated criminal assets.

These provisions are designed to create a unified and robust international framework for combating financial crimes and ensuring that perpetrators cannot easily hide their illicit wealth.

Conclusion: Moving Forward with Compliance

The recent assessments of Aruba and Morocco provide valuable insights into the ongoing efforts to combat money laundering and the financing of terrorism in these jurisdictions. While both countries have made significant progress, there are still areas that require attention to ensure full compliance with the provisions of the Warsaw Convention.

The evaluations emphasize the importance of continuous improvement in managing seized assets, monitoring suspicious transactions, and holding corporations accountable for financial crimes. As more countries adopt and implement the provisions of the convention, global efforts to combat money laundering and terrorism financing will become stronger, helping to create a safer and more transparent financial system.

Both Aruba and Morocco have demonstrated a strong commitment to complying with international AML and CFT standards. With the recommended improvements, these countries can further enhance their efforts to prevent the movement of illicit funds and ensure that criminal assets are recovered and returned to their rightful owners.

Related Links

• Council of Europe – Criminal Asset Recovery Convention
• FATF Recommendations
• European Commission on Money Laundering
• United Nations Office on Drugs and Crime – AML/CFT
• Aruba Government – Anti-Money Laundering Laws

Other FinCrime Central Articles about Europol

• Europol’s Record Operation Seizes Criminal Assets Worldwide
• Europol’s Landmark Operation Dismantles Crypto Crime Network

Source: Council of Europe