New Identity Verification Requirements in Dominica: What You Need to Know
The government of Dominica has introduced new regulations aimed at enhancing due diligence measures for businesses operating within the country. The enhanced due diligence (EDD) process requires companies to verify the identities of their customers, particularly Politically Exposed Persons (PEPs), and high-risk individuals.
What is Enhanced Due Diligence?
Enhanced due diligence involves a more thorough examination of an individual’s identity and background to detect potential money laundering risks. The new regulations require businesses to collect additional information about their customers, including:
- Name
- Date of birth
- Identification documents
Who Needs to Comply with the New Regulations?
All businesses operating in Dominica are required to comply with the new regulations, regardless of their size or type. This includes companies that provide financial services, such as banks and investment firms, as well as those that do not provide financial services, such as retailers and service providers.
What is a Politically Exposed Person (PEP)?
A PEP is an individual who holds a public office or has a close relationship with someone who does. These individuals may pose a higher risk of money laundering due to their position and influence. The new regulations require businesses to screen their customers against lists of known PEPs.
How Can Businesses Comply with the New Regulations?
Businesses can comply with the new regulations by using third-party screening services, such as those offered by Shufti Pro. These services use advanced algorithms and global watchlists to identify potential risks associated with a customer’s identity.
What are the Consequences of Non-Compliance?
Failure to comply with the new regulations can result in severe penalties, including:
- Fines
- Criminal charges
Businesses must take steps to ensure they are compliant with the new regulations to avoid these consequences.
Record Retention Requirements
Businesses must retain records of their due diligence measures for a minimum of seven years. This includes all data collected about customers, including identification documents and other relevant information.
In conclusion, the new identity verification requirements in Dominica aim to enhance due diligence measures and detect potential money laundering risks. Businesses operating in the country must comply with these regulations to avoid penalties and maintain their reputation.