Anti-Money Laundering Guidelines in Dominica
Scope and Application of Anti-Money Laundering (AML) Guidelines
The Anti-Money Laundering Guide provided by the financial services providers in Dominica outlines the scope and application of AML guidelines. These guidelines apply to various financial services, including:
- Banking Business: banking services offered by institutions
- Financial Business: investment advice, portfolio management, and other financial services
- Venture Capital: investments in startups or small businesses
- Money Transmission Services: transferring money from one person to another
- Issuing and Administering Means of Payment: issuing credit cards, debit cards, or other payment instruments
- Guarantees and Commitments: guaranteeing loans or making commitments on behalf of customers
- Trading for Own Account or for Account of Customers: buying and selling securities, commodities, or other financial instruments
Definition of a Relevant Financial Transaction
A “Relevant Financial Transaction” is defined as the provision of these services. The guidelines also apply to transactions involving an arrangement between two or more parties when at least one party is acting in the course of business.
Business Relationships and Frequent Transactions
The guide explains that AML guidelines also apply to the formation of a “business relationship” aimed at facilitating frequent, habitual, or regular Relevant Financial Transactions. This means that financial services providers must be vigilant and exercise care and diligence when assessing whether AML guidelines apply to business undertaken.
Isolated Transactions and Reporting
The guide notes that isolated transactions should be treated as any other transaction. However, if circumstances are questionable and unexplained, identity verification and reporting may be required.
Legislation Relating to Money Laundering
The legislation specifically relating to money laundering is contained in the Money Laundering Prevention Act (No 8 of 2011) and the Proceeds of Crime Act (No 4 of 1993). The guide provides definitions and offenses related to money laundering.
Conclusion
Overall, the Anti-Money Laundering Guide aims to provide a comprehensive framework for financial services providers in Dominica to prevent and detect money laundering activities. It emphasizes the importance of vigilance, reporting, and cooperation with regulatory authorities to ensure compliance with AML guidelines and legislation.