Anti-Money Laundering (AML) Guide for Financial Services Providers in Dominica

Introduction

The Commonwealth of Dominica has established guidelines for financial services providers to prevent and detect money laundering activities. This guide provides an overview of the main points covered in the AML legislation and procedures.

Scope of the Guidelines

• The guide applies to Financial Services Providers who offer specific services, including:
  • Banking
  • Money transmission
  • Issuing means of payment
  • Trading in money market instruments
  • Foreign exchange
  • And others

Business Relationship

• The guidelines apply to business relationships that involve arrangements between parties to carry out frequent or regular financial transactions when the aggregate payment is either uncalculated or incapable of being ascertained at the time of relationship formation.

Relevant Financial Transactions

• These are transactions involving services provided by financial institutions, including those listed in section 24 of the guide.

Application to Isolated Transactions

• Even isolated transactions should be treated with care and diligence, especially if there are questionable circumstances or suspicions of money laundering.
• Financial services providers must exercise caution when dealing with isolated transactions that may involve high-risk activities or suspicious behavior.

Legislation Outline

• The legislation related to money laundering is outlined in:
  • Money Laundering Prevention Act (No. 8 of 2011)
  • Proceeds of Crime Act (No. 4 of 1993)

Key Takeaways

• Financial services providers must exercise care and diligence in assessing whether AML guidelines apply to their business transactions.
• The guide emphasizes the importance of treating all transactions with caution, particularly those that involve isolated or questionable circumstances.

If you have any specific questions or would like more information on a particular aspect of this text, feel free to ask!