Dominica Strengthens Anti-Telegram Financing Regulations to Combat Money Laundering and Terrorism

Introduction

In response to global trends and threats, the government of Dominica has announced plans to upgrade its anti-money laundering (AML) and combating the financing of terrorism (CFT) framework. This move aims to bring Dominica’s AML/CFT regulations in line with international standards, as outlined by organizations such as the Financial Action Task Force (FATF).

Upgrading AML/CFT Regulations

The government of Dominica will work closely with regional organizations, including:

• Eastern Caribbean Central Bank: To implement new AML/CFT regulations and strengthen customer due diligence procedures.
• Organization of Eastern Caribbean States: To improve reporting requirements for suspicious transactions and enhance national risk assessment.

Key Objectives

• Establish a national risk assessment to identify potential vulnerabilities in the financial system.
• Strengthen customer due diligence procedures to prevent illicit actors from using shell companies or other vehicles to launder or finance terrorist activities.
• Improve reporting requirements for suspicious transactions to enable effective monitoring of illicit financial flows.

Global Context

Money laundering and terrorism financing continue to pose significant threats to global financial stability. The FATF has identified key risks, including:

• Cash-intensive businesses: Used by illicit actors to launder or finance terrorist activities.
• Shell companies: Used to conceal the true ownership and purpose of transactions.

International Support

The government of Dominica will work closely with civil society organizations and other stakeholders to ensure that its AML/CFT regulations are effective in combating money laundering and terrorism financing. The country’s efforts will be closely monitored by international bodies, including:

• Financial Action Task Force (FATF): To ensure compliance with global standards.
• International Monetary Fund (IMF): Providing technical assistance to strengthen the country’s capacity for risk assessment and reporting requirements.

Challenges Ahead

Dominica will face challenges in balancing regulatory compliance with financial inclusion. The country’s efforts will be closely watched by international observers, who are keenly aware of the significant risks posed by money laundering and terrorism financing.

Conclusion

Dominica’s move to strengthen its AML/CFT regulations is a critical step in combating money laundering and terrorism financing. The country’s efforts will be closely monitored by international bodies, which will work with the government of Dominica to ensure that its regulations are effective in preventing illicit financial flows and promoting financial stability.

Sources:

• Government of Dominica
• Financial Action Task Force (FATF)
• International Monetary Fund (IMF)
• Eastern Caribbean Central Bank
• Organization of Eastern Caribbean States