Money Services Businesses (MSBs) in the Commonwealth of Dominica: Regulatory Requirements

Introduction

The Commonwealth of Dominica has established specific regulations for Money Services Businesses (MSBs) to prevent money laundering and terrorist financing. This guide provides an overview of the key requirements and responsibilities for MSBs operating within the jurisdiction.

Definition of an MSB

An MSB refers to financial services that involve accepting cash, cheques, or other monetary instruments and paying a corresponding sum to a beneficiary through a communication, message, transfer, or clearing network.

Licensing Requirements

To operate in the Commonwealth of Dominica, MSBs must meet the following requirements:

• Be established as a Company in the Commonwealth of Dominica or a foreign company
• Obtain a license from the Financial Services Unit (FSU)

Duty of Vigilance

MSBs are required to perform their duty of vigilance by implementing the following measures:

• Customer Identification: Determine the true identity of customers and maintain accurate records.
• Suspicious Transaction Reporting: Recognize and report suspicious transactions to the Financial Intelligence Unit.
• Record Keeping: Keep records for the prescribed period of time.
• Internal Controls: Establish internal controls to prevent money laundering and terrorist financing.
• Staff Training: Train key staff on MSB regulations and requirements.

Money Laundering Reporting Officer (MLRO)

Every MSB is required to appoint an MLRO/CO who will receive suspicions of money laundering activity and report such activity to the Financial Intelligence Unit.

Consequences of Failure

Failure to comply with regulatory requirements may result in commercial consequences, as well as potential criminal liability for MSBs and their directors, members, managers, or other senior officers.