Financial Crime World

Dominica Cracks Down on Money Laundering and Terrorist Financing with Robust AML-KYC Regulations

The small island nation of Dominica, known for its picturesque beaches, has taken a firm stance against money laundering and terrorist financing by implementing robust regulations to prevent these illicit activities. At the heart of these efforts is the Identity Verification process, which is designed to ensure that financial institutions and businesses operating in Dominica are compliant with the Money Laundering (Prevention) Act and related regulations.

Implementing AML-KYC Regulations

Under Dominica’s AML-KYC regulations, Identity Verification is a critical component of due diligence requirements. The Financial Service Unit of the Commonwealth of Dominica provides the framework for this process, which requires financial institutions to verify the identities of their clients and customers.

Identification Attributes

For natural persons, the following identification attributes are essential:

  • Name
  • Address
  • Identity document number

To verify these attributes, financial institutions can use a range of compliant methods, including:

  • Independent document verification
  • Specialized document verification services

Enhanced Due Diligence (EDD)

In addition to Identity Verification, Dominica’s regulations also require EDD measures for high-risk customers, such as Politically Exposed Persons (PEPs). EDD involves scrutinizing potential business relationships and checking ID attributes against global regulatory authorities’ watchlists and other sanctioned individuals.

Data Retention

Financial institutions operating in Dominica are also required to retain essential data, including Due Diligence Data from third parties, for at least seven years. This is part of the AML and KYC obligations for due diligence.

It’s worth noting that while Shufti Pro’s systems and legal compliance may be quoted in this document, clients remain responsible for complying with their own legal obligations under Dominica’s AML-KYC regulations.