Financial Crime World

Dominica Makes Progress in Preventing Financial Crime, but Areas for Improvement Remain

Introduction

A recent assessment by the Financial Action Task Force (FATF) has highlighted both strengths and weaknesses in Dominica’s efforts to prevent financial crime. While the island nation has made significant strides in implementing best practices, there are still areas where improvement is needed.

FATF Evaluation: A Mixed Report Card

The FATF evaluation assessed countries’ compliance with international standards for anti-money laundering and combating the financing of terrorism (AML/CFT). The report revealed that Dominica has largely complied with 13 out of 40 recommended measures. These include:

  • Assessing risk and applying a risk-based approach
  • National cooperation and coordination
  • Customer due diligence

However, there are still several areas where Dominica falls short. The country was found to be partially compliant in just five areas, including:

  • Regulation and supervision of designated non-financial businesses and professions (DNFBPs)
  • Transparency and beneficial ownership of legal persons
  • Financial intelligence units

Areas for Improvement

Dominica was also found to be non-compliant in two areas:

  • Regulation and supervision of DNFBPs
  • Mutual legal assistance: freezing and confiscation

These findings suggest that the country’s authorities need to take further steps to strengthen their AML/CFT framework and ensure that it is effectively enforced.

Strengths in Dominica’s AML/CFT Regime

Despite these challenges, the FATF evaluation also identified several strengths in Dominica’s AML/CFT regime. The country has made significant progress in recent years, including:

  • Implementation of a risk-based approach to customer due diligence
  • Establishment of a financial intelligence unit

Conclusion

While there are areas where improvement is needed, Dominica’s efforts to prevent financial crime are generally positive. With continued attention and effort, the country can strengthen its AML/CFT framework and ensure that it remains a safe and secure environment for businesses and individuals alike.

Key Findings:

  • 13 out of 40 recommended measures were found to be largely compliant
  • 5 areas were found to be partially compliant
  • 2 areas were found to be non-compliant
  • Strengths in risk-based approach, customer due diligence, and financial intelligence unit
  • Areas for improvement in regulation and supervision of DNFBPs, transparency and beneficial ownership, and mutual legal assistance

Recommendations:

  • Continue to strengthen AML/CFT framework through implementation of international standards
  • Enhance regulation and supervision of DNFBPs
  • Improve transparency and beneficial ownership requirements
  • Strengthen financial intelligence unit capabilities
  • Address areas of non-compliance in mutual legal assistance: freezing and confiscation