Financial Crime World

Anti-Money Laundering (AML) Guidelines for Financial Institutions in Dominica

Scope of the Guidelines

The Anti-Money Laundering guidelines outlined in this document apply to all Financial Services Providers (FSPs) operating in Dominica. These FSPs include:

  • Banking services: commercial banks, merchant banks, and other financial institutions that provide banking services.
  • Financial business: companies that engage in activities such as venture capital, asset management, and insurance.
  • Money transmission services: businesses that facilitate the transfer of funds on behalf of customers.
  • Means of payment: issuers and administrators of means of payment, such as credit cards, debit cards, and prepaid cards.
  • Guarantees and commitments: companies that provide guarantees and commitments to their customers.
  • Trading in securities: brokerages, stock exchanges, and other organizations involved in the buying and selling of securities.
  • Foreign exchange: businesses that facilitate foreign currency transactions.

When the Guide Applies

The guide applies to all financial transactions involving FSPs. This includes:

  • Business arrangements: any arrangement between two or more parties where at least one party is acting in the course of business.
  • Formation of a business relationship: when the aggregate payment for a series of transactions cannot be calculated or is uncalculated.

Isolated Transactions

Isolated transactions should be treated like any other transaction. However, if there are any circumstances that appear questionable or unexplained, identity verification and reporting may be necessary.

Money Laundering Legislation

In Dominica, the following laws specifically relate to money laundering offenses:

  • Money Laundering Prevention Act (No. 8 of 2011): This act provides a framework for preventing and detecting money laundering activities.
  • Proceeds of Crime Act (No. 4 of 1993): This act outlines the procedures for investigating and prosecuting money laundering offenses.

Conclusion

The AML guidelines outlined in this document provide FSPs operating in Dominica with a comprehensive framework to understand their obligations under AML legislation and implement effective measures to prevent and detect money laundering activities.