Dominica: AML/KYC Regulations Strengthened

Roseau, Dominica - The government of Dominica has recently strengthened its Anti-Money Laundering (AML) and Know-Your-Customer (KYC) regulations to combat financial crimes. Effective immediately, businesses operating in the country must adhere to stricter guidelines to prevent money laundering and terrorist financing.

Identity Verification Mandatory

Identity verification is a critical step in the onboarding process of new customers under the new regulations. To verify identity, businesses must require:

• A current utility bill
• Government-issued document (e.g., passport, driver’s license)
• Bank statement (not older than three months) as proof of address and name

This measure aims to prevent fraudulent activities and ensure that businesses are dealing with legitimate clients.

Multiple Instances of Verification Required

Identity verification is not a one-time process. It may be required in multiple instances depending on the business’s requirements and risk assessment, such as:

• Businesses dealing with transaction data must apply identity verification as per monetary thresholds defined by Dominica’s regulations
• Additional verification may be required for Politically Exposed Persons (PEPs) or high-risk customers

Politically Exposed Persons and Enhanced Due Diligence Measures

The enhanced due diligence measures under Dominica’s regulations require businesses to:

• Determine if their customers are PEPs or exhibit a higher risk profile
• Apply additional verification measures for these individuals, such as:
  • Review of their background and business dealings
  • Verification of their source of funds
  • Monitoring of their activities

Shufti Pro, an AML screening service, can help businesses identify PEPs and their associates.

Reliance on External Services Permitted

Dominica’s regulations allow businesses to seek the services of third-party providers to apply measures of due diligence. However, it is essential for businesses to:

• Collect all necessary data from these providers without undue delay
• Maintain compliance with AML and KYC obligations

Record Retention Required

Businesses in Dominica are required to retain data for no less than seven years as part of their AML and KYC obligations for due diligence. In cases where third-party providers manage this information, businesses must:

• Collect necessary data without undue delay
• Ensure compliance with record retention requirements

The new regulations aim to strengthen the country’s financial sector by preventing money laundering and terrorist financing. Businesses operating in Dominica are urged to comply with these regulations to avoid any penalties or legal consequences.