Financial Crime World

Dominica Cracks Down on Financial Crime with New Legislation

The Commonwealth of Dominica is taking aggressive steps to strengthen its financial sector against money laundering and terrorist financing. New legislation, the Proceeds of Crime (Suspicious Reporting) Order, 2014 (S.R.O. 10), outlines a robust framework for reporting and preventing financial crimes.

Key Components of the New Legislation - S.R.O. 10

S.R.O. 10 features a comprehensive arrangement of sections focusing on the roles of the Financial Intelligence Unit (FIU) and Financial Services Unit (FSU), and duties for entities and professionals.

  • FIU and FSU Roles
    • FIU: primary reporting entity for suspicious transactions concerning money laundering and terrorist financing
    • FSU: monitors compliance by its licensees and entities subject to the Act

Core Provisions of the New Legislation

S.R.O. 10 outlines several provisions to prevent financial crimes:

  • FIU and FSU Duties and Functions
  • Internal Control Systems for Entities and Professionals
    • Risk assessment
    • Training
    • Record keeping
  • Customer Due Diligence Measures
    • Identity verification
    • Politically exposed persons
  • Wire Transfers, Record Keeping, and Employee Training

Effective Internal Control Systems

Entities and professionals are tasked with establishing internal control systems to prevent financial crimes. The legislation sets forth requirements for these systems, including:

  • Risk Assessment
  • Training
  • Record Keeping

Customer due Diligence Measures

Customer due diligence measures play a crucial role in implementing S.R.O. 10:

  • Identity Verification
  • Politically Exposed Persons

Wire Transfers, Record Keeping, and Employee Training

The Code of Practice outlines provisions to combat financial crimes:

  • Wire Transfers
  • Record Keeping
  • Employee Training

Conclusion

Dominica’s commitment to rooting out financial crimes is demonstrated by this comprehensive legislation. S.R.O. 10 ensures the transparency and integrity of the country’s financial sector.