Financial Crime World

Title: Dominica’s Finance Regulatory Landscape: CFATF’s Verdict on AML/CFT Measures

Overview

The Caribbean Financial Action Task Force (CFATF) has evaluated the anti-money laundering (AML) and counter-terrorist financing (CTF) measures of the Commonwealth of Dominica. This article highlights the key findings of the report,which was concluded during an onsite visit from August 15-26, 2022.

Dominica’s Efforts to Combat Financial Crimes

  • Completed the first National Risk Assessment (NRA) in 2016
  • Identified significant money laundering (ML) threats
  • Requires a more comprehensive assessment of terrorist financing (TF) risk

Achievements and Challenges

Cooperation and Coordination

  • National Anti-Money Laundering Advisory Committee (NAMLAC) and its sub-committees
  • National Policy, National Strategy, and National Implementation Action Plan (NIAP)

Financial Intelligence Unit (FIU)

  • Improvements since the creation of distinct investigations and analytical departments
  • Shortage of human resources

Law Enforcement Agencies (LEAs)

  • Need for more focus and resources to investigate ML cases
  • Proactive approach to identifying ML crimes is essential

Role of Supervisors: Financial Services Unit (FSU)

  • Moderately effective supervision of financial institutions (FIs) and virtual asset service providers (VASPs)
  • Supervision of designated non-financial business and professions (DNFBPs) is in its infancy

Recommendations for Improvement

  • Increased focus on high-risk areas, such as CBI program and drug trafficking
  • Improved resources for LEAs and the FIU
  • More targeted and effective supervision of DNFBPs

Conclusion

Despite notable achievements, there are still areas for improvement in Dominica’s AML/CFT system. The CFATF report emphasizes the importance of understanding ML/TF risks among all sectors and effective collaboration between the FIU and competent authorities for successful investigations and prosecutions. The ultimate goal is to ensure a robust and effective AML/CFT framework to protect the financial system from the dangerous effects of financial crimes.

Key Points

  • CFATF assesses Dominica’s AML/CFT measures
  • Dominica has made progress but requires improvement
  • Key areas for improvement include increased focus on high-risk areas, effective supervision, and improved resources for LEAs and the FIU.