Dominica Takes Step to Enhance Financial Institutions’ Risk Management Amidst FATF Scrutiny
Strengthening its Financial System
In a move aimed at strengthening its financial system and avoiding a potential listing on the Financial Action Task Force (FATF) negative list, the Government of Dominica has launched a national risk assessment for money laundering and terrorism financing.
Funding and Timeline
The one-day sensitization workshop, held on May 5th, marks the beginning of this initiative, which is being funded by the World Bank at a cost of US $150,000. This project will guide Dominica in assessing its vulnerabilities to money laundering and terrorist financing, enabling the jurisdiction to design a more effective and risk-based anti-money laundering (AML) and combating terrorism regime.
Objectives
- Identify areas that require improvement
- Develop targeted strategies to mitigate risks
- Comply with FATF guidelines
- Ensure the robustness of the country’s financial system
FATF Guidelines and Compliance
Dominica has made significant strides in complying with FATF guidelines, having been removed from the financial blacklist by the Organization of Economic Cooperation and Development (OECD) in 2001 following the development of policies and legislative amendments by the Dominica Labour Party Administration.
Continued Vigilance
However, officials acknowledge that more needs to be done to ensure the robustness of the country’s financial system. Minister for Justice, Immigration and National Security, Rayburn Blackmoore, emphasized the importance of continued vigilance, stating that “no one should be allowed to defile us” and that Dominica must do what is required to maintain its good standing.
Strengthening the Financial Intelligence Unit (FIU)
To further strengthen the FIU, which was established in 2001, Minister Blackmoore announced plans to appoint a Director and Legal Officer. Additionally, Attorney General Levi Peter intends to table amendments to the Proceeds of Criminal Activity Act and the Money Laundering Act in Parliament soon.
Workshop Outcomes
The workshop, attended by stakeholders from financial and non-financial institutions, is seen as a critical step towards ensuring the security of Dominica’s financial system and continued participation in regional and international financial systems. According to Peter, “it is critical that we ensure our system is functional in a way which complies with the requirements of the regional and international financial systems so that we secure our corresponding banking arrangements but also ensure that we keep Dominica out of the clutches of the negative listing.”