Dominica Falls Short in Combatting Financial Crimes, CFATF Assessment Reveals

A recent evaluation by the Caribbean Financial Action Task Force (CFATF) has highlighted weaknesses in Dominica’s efforts to combat money laundering (ML) and terrorist financing (TF), prompting recommendations for improvement.

Key Findings

• The onsite assessment identified several areas of concern, including:
  • Lack of sufficient financial intelligence for ML investigations
  • Weaknesses in transparency and beneficial ownership reporting requirements
  • Insufficient implementation of targeted financial sanctions related to terrorism and TF
  • Inadequate training and awareness among Financial Institutions (FIs) and Designated Non-Financial Businesses and Professionals (DNFBPs)
• Despite improvements in recent years, including the ratification of UNSCRs 1267 and 1373 and the establishment of a Financial Intelligence Unit (FIU), Dominica’s authorities were found to be lacking in certain key areas.

Recommendations for Improvement

• Conduct a comprehensive review of the National Risk Assessment (NRA)
• Improve cooperation and coordination among authorities
• Enhance beneficial ownership reporting requirements
• Implement targeted financial sanctions related to terrorism and TF
• Provide improved training and awareness among FIs and DNFBPs
• Establish a national TF policy to guide authorities in addressing TF risks
• Ensure sufficient human capital, financial resources, and access to improved data, statistics, and ML/TF risk assessment information for competent authorities

Importance of Addressing Recommendations

The CFATF emphasizes that addressing these recommendations is crucial for Dominica to effectively strengthen its Anti-Money Laundering/Countering the Financing of Terrorism (AML/CFT) regime and successfully combat financial crimes.

By implementing these recommendations, Dominica can improve its ability to detect and prevent ML and TF, ultimately protecting its financial system and economy.