Dominica Falls Short of International Financial Crime Standards

Introduction

A recent evaluation by the Financial Action Task Force (FATF) has revealed that Dominica is struggling to keep pace with international standards for combating financial crime. The island nation was rated largely compliant in several key areas, but fell short in others.

Areas of Concern

Money Laundering Offense

• Dominica was rated “compliant” in the establishment of a money laundering offense and confiscation measures.
• However, the country’s laws did not adequately address the issue of financial institution secrecy, falling short of international standards.

Non-Profit Organizations and Beneficial Ownership Transparency

• The FATF found that Dominica had made significant progress in implementing regulations for non-profit organizations and increasing transparency around beneficial ownership.
• However, the country was rated “partially compliant” in these areas, indicating that more work remains to be done.

Correspondent Banking and DNFBPs

• Dominica’s correspondent banking and dealings with designated non-financial businesses and professions (DNFBPs) were found to be lacking.
• The country was rated “non-compliant” in these areas, highlighting the need for greater regulation and oversight.

Recommendations for Improvement

The FATF has recommended that Dominica take immediate action to address its shortcomings. This includes:

• Strengthening laws and regulations around financial institution secrecy
• Improving correspondent banking practices
• Increasing transparency around beneficial ownership and non-profit organizations
• Enhancing regulation and oversight of DNFBPs

Conclusion

While Dominica has made progress in certain areas, it still faces significant challenges in meeting global standards for combating financial crime. The FATF’s evaluation serves as a wake-up call for the country to take action and improve its regulations and oversight to prevent financial crimes and protect its reputation.