Financial Crime World

Dominica Takes Bold Step in Fight Against Financial Crimes with New Money Laundering Regulations

The government of the Commonwealth of Dominica has taken a significant step towards bolstering its financial regulatory framework by introducing the new Money Laundering (Prevention) Regulations, 2013. These regulations aim to prevent money laundering and terrorist financing in the island nation.

Key Features of the Regulations

  • The regulations comprise six parts: Systems and Training, Identification and Other Procedures, Record-Keeping Procedures, Internal Reporting, Penalties, and Miscellaneous Provisions.
  • Relevant businesses must establish procedures for identification, record-keeping, internal reporting, and internal controls to prevent money laundering.
  • Businesses are required to provide regular training to their employees.

Consequences of Non-Compliance

  • Businesses that fail to comply with these regulations could face severe consequences, including:
    • A fine of up to $40,000
    • Imprisonment for up to two years

Key Provisions of the Regulations

Systems and Training

  • Establish procedures for identification, record-keeping, internal reporting, and internal controls to prevent money laundering.
  • Provide regular training to employees.

Identification and Other Procedures

  • Establish and verify the identity of customers, with some exceptions.
  • Conduct ongoing customer due diligence measures and enhance these measures for high-risk transactions.

Record-Keeping Procedures

  • Maintain records of:
    • Customers’ identification data
    • Transactions
    • Internal reports
  • Report certain transactions to relevant authorities, including the Money Laundering Supervisory Authority and the Financial Intelligence Unit.
  • Reports must be made as soon as possible and contain required information.

Miscellaneous Provisions

  • Currency reporting
  • Use of guidance notes
  • Political exposed persons

Conclusion

The new Money Laundering (Prevention) Regulations, 2013 mark a significant step towards strengthening Dominica’s anti-money laundering and counter-terrorist financing framework. The government is committed to maintaining a transparent and compliant financial system, which is essential for attracting foreign investment and fostering economic growth.