Financial Crime World

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What Is Money Laundering in Dominica?

Money laundering is a significant concern for the global financial system, and Dominica is no exception. The country has been evaluated by the Financial Action Task Force (FATF) to assess its implementation of anti-money laundering measures.

Progress and Areas for Improvement

According to the FATF’s 2023 Mutual Evaluation Report, Dominica has made progress in implementing certain technical requirements, but there are still areas that need improvement. The report highlights several key findings:

  • Dominica is largely compliant with the requirement to assess risk and apply a risk-based approach (R.1).
  • It is partially compliant with the requirement for targeted financial sanctions related to terrorism and terrorist financing (R.6).
  • The country has made progress in implementing measures to prevent the misuse of companies and other legal arrangements (R.24) and to regulate and supervise financial institutions (R.26).

However, Dominica is still non-compliant with several requirements, including:

  • Confiscation and provisional measures (R.4)
  • Terrorist financing offences (R.5)
  • International cooperation in freezing and confiscating assets (R.38)

Areas for Improvement

The report identifies several areas where Dominica needs to improve its anti-money laundering efforts:

  • Correspondent banking (R.13)
  • Enhancing powers of supervisors (R.27)
  • Stronger regulation and supervision of designated non-financial businesses and professions (DNFBPs) (R.28)

Recommendations

The FATF recommends that Dominica address these shortcomings and continue to strengthen its anti-money laundering regime. By doing so, the country can better protect itself from the threats of money laundering and terrorist financing.

Conclusion

While Dominica has made progress in implementing certain anti-money laundering measures, there is still much work to be done to improve its compliance with FATF requirements. The government must continue to prioritize this issue to ensure the integrity of the financial system and prevent the misuse of funds for illegal activities.