Dominica’s Financial Regulator Meets International Standards, Report Reveals
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A recent assessment by the Financial Action Task Force (FATF) has found that Dominica’s regulations and measures to combat money laundering and terrorist financing are largely compliant with international standards.
Compliance with Global Standards
The report evaluated the island nation’s anti-money laundering and combating the financing of terrorism (AML/CFT) regime, finding that Dominica has made significant progress in implementing the technical requirements of the FATF Recommendations. The assessment was conducted as part of a mutual evaluation process between countries to ensure compliance with global standards.
Key Areas of Strength
According to the report, Dominica scored high marks in several key areas, including:
- Risk-Based Approach: The country’s risk-based approach to assessing money laundering and terrorist financing risks was deemed effective.
- National Cooperation: National cooperation and coordination among authorities were found to be strong.
- Customer Due Diligence: Customer due diligence requirements for financial institutions were considered satisfactory.
Areas for Improvement
However, the report also identified some areas where Dominica needs to improve, including:
- Powers of Supervisors: The powers of supervisors and regulation and supervision of designated non-financial businesses and professions (DNFBPs) require strengthening.
- Regulations on Confidentiality of Bank Information: Regulations governing the confidentiality of bank information need to be improved.
Partial Compliance
The country was found to be partially compliant in several areas, including:
- Targeted Financial Sanctions: Targeted financial sanctions related to terrorism and terrorist financing require further implementation.
- Transparency and Beneficial Ownership Requirements: Transparency and beneficial ownership requirements for legal persons need to be strengthened.
Roadmap for Improvement
The report’s findings are significant for Dominica, which has faced concerns from international partners over its AML/CFT regime in recent years. The assessment provides a roadmap for the country to address any remaining gaps and strengthen its anti-money laundering and combating the financing of terrorism framework.
Response from Authorities
Dominica’s authorities have welcomed the report’s findings, stating that they will work to implement the recommendations made by the FATF and continue to improve their AML/CFT regime. The report is expected to enhance the island nation’s reputation as a responsible financial center and strengthen its relationships with international partners.