Financial Crime World

Title: Dominica’s Financial Compliance Regulations: A Guide to AML-KYC Identity Verification

Introduction

Dominica, known for its beautiful beaches, has implemented robust regulations to prevent money laundering and terrorist financing. This guide provides an overview of Dominica’s AML-KYC regulations, focusing on the Identity Verification process in line with the Money Laundering (Prevention) Act and related regulations.

Scope

This report highlights the Identity Verification requirements under Dominica’s AML-KYC regulations. The Financial Service Unit of the Commonwealth of Dominica and related acts provide the basis for this study.

Definitions

  • Client: Shufti Pro’s customer
  • Customer: The Client’s customer, subjected to KYC-AML checks
  • End-user: The Client’s customer, but from Shufti Pro’s perspective
  • Document Verification: Verification of a government-issued identity document’s authenticity
  • Identity Verification: Verification of a client’s identity
  • Proof of Identity: Any government-issued identity document used to identify an individual
  • Enhanced Due Diligence (EDD): Scrutinizing potential business relationships
  • Third-Party Diligence: Outsourcing due diligence to an external party
  • Politically Exposed Person (PEP): A person with a higher risk for bribery/corruption involvement
  • Due Diligence: Measures taken to mitigate risk before transactions or agreements

Due Diligence Requirements - Identity Verification

Required Identification Attributes

To identify a natural person from official documents, the following attributes are essential:

  • Name
  • Address
  • Identity document number

Compliant CDD Methods

Shufti Pro utilizes the following methods for Identity Verification on behalf of the Client when the End-user is an individual and not physically presenting themselves:

4.2.1. Independent document verification

Shufti Pro performs End-user identity verification based on independent, photo-based biometric identity documents. These documents provide reasonable reliability for the confirmation of identity in Dominica.

4.2.2. Document verification

Shufti Pro verifies the authenticity of submitted documents using specialized Document Verification services. This includes checks on security features, inconsistencies, and other fraud indicators.

Timing and EDD Measures

Identity Verification is not a one-time process. It may be required repeatedly, depending on transaction thresholds and risk assessments. EDD processes help determine if a Customer is a Politically Exposed Person or has a higher risk profile. In such cases, Shufti Pro provides an AML Screening service that checks ID attributes against global regulatory authorities’ watchlists, compromised PEPs, and other sanctioned individuals.

Record Retention

Dominica’s regulations require entities to retain essential data, including Due Diligence Data from third parties, for at least seven years. This is part of the AML and KYC obligations for due diligence. If the information is processed, collected, and managed by a relevant third party, the entity is responsible for obtaining all necessary information without undue delay.

Note

Quoting this document does not constitute a warranty of Shufti Pro’s systems or legal compliance. Clients remain responsible for complying with their legal obligations.