Financial Crime World

Title: Dominica’s Financial Crimes Legislation Under Scrutiny: CFATF Evaluates AML/CFT Measures

CFATF Publishes Mutual Evaluation Report on Dominica’s AML/CFT Framework

The Caribbean Financial Action Task Force (CFATF) has released its Mutual Evaluation Report on the Commonweath of Dominica’s anti-money laundering (AML) and counter-terrorist financing (CTF) measures. This comprehensive report, adopted during the CFATF Plenary held in Port of Spain, Trinidad and Tobago, in May 2023, evaluates Dominica’s current AML/CFT framework and offers recommendations for improvement.

Overview of Risks and General Situation in Dominica

  • ML threats: drug trafficking, firearm trafficking, fraud, burglary, among others
  • Significant progress made in enhancing Dominica’s AML/CFT framework
  • Further assessment needed in certain areas: TF risks, legal persons, and VASPs

Key Findings and Recommendations

Deficiencies and Strengths

  • Cooperation and coordination enhancements via NAMLAC and sub-committees
  • Human and financial resource constraints at FIU hamper investigations
  • Limited prioritization and human resources for ML cases within the judicial system

CFATF Recommendations

Risk Assessment and Understanding

  • Re-evaluate risks of NPOs, VASPs, and CBI program

Financial Intelligence and ML Investigations

  • Improve financial intelligence, investigations
  • Establish a national TF policy
  • Ensure transparency and beneficial ownership of legal persons

Prevention and Regulatory Frameworks

  • Strengthen international cooperation
  • Enhance prevention measures
  • Develop and implement regulatory and supervisory frameworks for various sectors

By addressing these recommendations, Dominica can strengthen its AML/CFT measures and reduce vulnerabilities to financial crimes.

Other Findings and Recommendations

  • Re-evaluate the risk-based approach to AML/CFT measures
  • Develop and implement a National Risk Assessment
  • Enhance international cooperation and information sharing
  • Collaborate with other international bodies, such as the FATF, in implementing recommendations

Dominica’s government has yet to officially respond to the report’s findings and recommendations.