Financial Crime World

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Dominica Fights Financial Crime: Implementing FATF Recommendations

The island nation of Dominica is committed to preventing financial crime and has been working diligently to implement the Financial Action Task Force (FATF) Recommendations. The country’s efforts have yielded significant progress, but there are areas that require attention.

Progress in Compliance

According to the latest Mutual Evaluation Report 2023, Dominica has achieved compliance in several key areas, including:

  • National Cooperation and Coordination: Dominica has established a robust framework for national cooperation and coordination among its agencies, ensuring effective information sharing and collaboration.
  • Confiscation and Provisional Measures: The country has implemented adequate laws and procedures to confiscate proceeds of crime and freeze assets, demonstrating its commitment to asset recovery.
  • Terrorist Financing Offence: Dominica has enacted legislation that prohibits terrorist financing activities, demonstrating its dedication to preventing the financing of terrorism.

Areas for Improvement

However, there are areas where Dominica needs to improve, including:

  • Customer Due Diligence: While Dominica has made progress in implementing customer due diligence measures, it still requires more work to ensure effective risk assessment and monitoring.
  • Financial Intelligence Units: The country’s financial intelligence unit (FIU) is not yet fully functional, hindering the collection and analysis of suspicious transaction reports.
  • Regulation and Supervision of DNFBPs: Dominica needs to strengthen its regulation and supervision of designated non-financial businesses and professions (DNFBPs), including casinos and real estate agents.

Recommendations for Improvement

To achieve full compliance with the FATF Recommendations, Dominica should focus on addressing these gaps. By doing so, the country can maintain a robust financial system that is resistant to money laundering and terrorist financing activities.

Here are some recommendations for improvement:

1. Enhance Customer Due Diligence Measures

  • Ensure effective risk assessment and monitoring of customers
  • Implement robust procedures for identifying and verifying customer information

2. Strengthen the Functioning of the FIU

  • Improve the collection and analysis of suspicious transaction reports
  • Enhance the FIU’s capacity to provide financial intelligence to law enforcement agencies

3. Implement Robust Regulation and Supervision of DNFBPs

  • Strengthen oversight of casinos, real estate agents, and other designated non-financial businesses and professions
  • Ensure that these entities implement effective anti-money laundering measures

By addressing these gaps and continuing to work towards full compliance with the FATF Recommendations, Dominica can maintain a strong reputation as a country that takes financial crime seriously and is committed to preventing its occurrence.