Dominica Struggles with Financial Inclusion and Crime, Report Reveals

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A recent report by the Financial Action Task Force (FATF) has highlighted Dominica’s ongoing challenges in implementing measures to combat financial crime and promote financial inclusion.

Mixed Assessment

The country received a mixed assessment from the FATF, with several areas of concern identified. According to the report, Dominica was found to be “partially compliant” in only 13 out of 40 assessed elements, including:

• Confiscation and provisional measures to combat money laundering and terrorist financing
• Customer due diligence
• Record keeping
• Reporting of suspicious transactions

Areas for Improvement

The report noted that Dominica still needs to improve its national cooperation and coordination mechanisms to effectively combat financial crime. Additionally, the country was found to be “non-compliant” in several areas, including:

• Laws and regulations related to non-profit organizations
• Financial institution secrecy
• Correspondent banking

Significance of Findings

The report’s findings have significant implications for Dominica’s efforts to promote financial inclusion and reduce crime. The country’s financial sector is heavily reliant on international cooperation and compliance with global standards to maintain its credibility and stability.

Recommendations

Dominica’s government has been urged to take immediate action to address the report’s recommendations, including:

• Strengthening national cooperation and coordination
• Improving customer due diligence
• Enhancing transparency and beneficial ownership of legal persons and arrangements

Conclusion

The report’s findings serve as a wake-up call for Dominica to prioritize financial inclusion and crime prevention in order to protect the integrity of its financial system and ensure the well-being of its citizens.