Financial Crime World

Compliance Guide: Anti-Money Laundering (AML) and Know-Your-Customer (KYC) Regulations in Dominica

Due Diligence Requirements

To ensure compliance with AML and KYC regulations in Dominica, the following measures must be taken:

  • Identify and Verify Customer Information: Gather accurate and up-to-date information about customers, including their identity, address, and occupation.
  • Conduct Regular Reviews of Customer Transactions: Monitor customer transactions to detect suspicious activity and ensure compliance with regulatory requirements.
  • Apply Enhanced Due Diligence (EDD) Measures for High-Risk Customers: Perform additional checks on high-risk customers to minimize the risk of money laundering.

Politically Exposed Persons (PEPs)

Individuals who hold public office or exhibit a higher risk profile are considered PEPs. To identify PEPs, it is essential to:

  • Screen Customers Against Watchlists and Databases: Regularly check customer information against watchlists and databases to ensure compliance with AML regulations.
  • Verify Customer Identity: Verify the identity of customers who may be PEPs to ensure compliance with KYC requirements.

Reliance on External Services

Dominica’s regulations allow for reliance on external services, but it remains the responsibility of the individual to collect all necessary data from these third-party providers without undue delay. This includes:

  • Obtaining Information from Third-Party Providers: Collect information from third-party providers in a timely manner to ensure compliance with AML and KYC regulations.
  • Verifying Data: Verify data obtained from external services to ensure accuracy and completeness.

Record Retention

All relevant data must be retained for at least seven years as part of AML and KYC obligations. This includes:

  • Maintaining Accurate Records: Maintain accurate and up-to-date records of customer information, transactions, and other relevant data.
  • Retaining Data for Seven Years: Retain all relevant data for a minimum period of seven years to ensure compliance with regulatory requirements.

By following this comprehensive guide, individuals can ensure compliance with AML and KYC regulations in Dominica.