Financial Crime World

Title: Dominica Falls Short in Several Areas of Financial Crime Reporting: Key Findings from the FATF Mutual Evaluation

FATF Evaluation of Dominica’s Compliance with AML/CTF Standards

The Financial Action Task Force (FATF) recently released the mutual evaluation report for Dominica. The assessment aimed to evaluate the Caribbean nation’s level of compliance with international anti-money laundering (AML) and counter-terrorist financing (CTF) standards.

Dominica Mutual Evaluation 2023: Areas of Concern

The evaluation looked at 40 key recommendations, rating Dominica’s extent of implementation on a scale of:

  • Compliant (C)
  • Largely compliant (LC)
  • Partially compliant (PC)
  • Non-compliant (NC)

Areas where Dominica needs Improvement

Risk assessment (R.1)

Dominica was found to be largely compliant in implementing risk assessment measures.

National cooperation and coordination (R.2)

In this area, Dominica received a largely compliant rating.

Money laundering offense (R.3) and terrorist financing offense (R.5)

Dominica was found to be compliant in both instances.

Confiscation and provisional measures (R.4)

This area emerged as a significant concern. Dominica was rated non-compliant.

Terrorist financing-related targeted financial sanctions (R.6 & R.7)

Dominica managed a compliant status in these areas.

Non-profit organizations (R.8)

Non-compliant was the rating given for this recommendation.

Financial institution secrecy laws (R.9)

Dominica received a compliant rating.

Customer due diligence (R.10)

Dominica was classified as largely compliant.

Record-keeping (R.11)

Dominica received a compliant rating.

Politically exposed persons (R.12)

With a largely compliant status, Dominica has made progress.

Correspondent banking (R.13)

Non-compliant rating for Dominica in this area.

Money or value transfer services (R.14)

Dominica was found to be largely compliant.

New technologies (R.15)

Dominica was compliant in utilizing and implementing new technologies.

Other areas of improvement

Dominica has been rated as partially compliant in the following areas:

  • Targeted financial sanctions related to terrorism & terrorist financing and proliferation (R.6 & R.7).
  • Regulation and supervision of financial institutions (R.26).
  • Regulation and supervision of Designated Non-Financial Businesses and Professions (DNFBPs) (R.28).

Dominica has been rated as a large compliant, but significant progress needs to be made.

Dominica has significant work to do in areas rated as non-compliant, such as:

  • Confiscation and provisional measures (R.4).
  • Non-profit organizations (R.8).
  • Correspondent banking (R.13).

The FATF report highlights the need for Dominica to improve these areas and take immediate action to prevent financial crime and bring itself up to par with international standards.