Financial Crime World

Dominica Takes Aggressive Stance Against Financial Crime

The Commonwealth of Dominica has taken significant steps to strengthen its financial sector against money laundering and terrorist financing with the introduction of new legislation aimed at promoting transparency and integrity in the country’s financial dealings.

Comprehensive Framework for Reporting and Prevention

The Proceeds of Crime (Suspicious Reporting) Order, 2014 (S.R.O. 10), sets out a comprehensive framework for reporting and preventing financial crimes. This law designates the Financial Intelligence Unit (FIU) as the primary reporting entity for suspicious transactions related to money laundering and terrorist financing.

Key Provisions

The legislation outlines several key provisions aimed at preventing financial crimes, including:

  • Internal Control Systems: Entities and professionals must establish internal control systems to prevent financial crimes.
  • Customer Due Diligence: Measures such as identity verification and Politically Exposed Persons screening are required for customers.
  • Wire Transfer Record Keeping: Wire transfer records must be kept for a minimum of five years.
  • Employee Training: Employees must receive training on anti-money laundering procedures.

Code of Practice

The Code of Practice outlined in S.R.O. 10 provides a framework for combating financial crimes, covering:

  • Wire Transfers: Provisions for wire transfers and record keeping are outlined.
  • Record Keeping: Entities must maintain records of all transactions.
  • Employee Training: Employees must receive training on anti-money laundering procedures.

Benefits

The introduction of S.R.O. 10 is expected to have far-reaching benefits, including:

  • Improved Compliance: Improved compliance with international standards.
  • Reduced Risks: Reduced risks associated with money laundering and terrorist financing.
  • Financial Inclusion: A robust framework for preventing financial crimes and promoting transparency in financial transactions.

Conclusion

The introduction of S.R.O. 10 is a significant step forward in the fight against financial crime, demonstrating Dominica’s commitment to promoting transparency and integrity in its financial sector. The legislation is expected to have a positive impact on the country’s financial sector, improving compliance with international standards and reducing risks associated with money laundering and terrorist financing.