Financial Crime World

Title: Dominica Cracks Down on Money Laundering with New Legislation

Introduction

Dominica’s Parliament has recently passed the Money Laundering (Prevention) Act, 2011, with the aim of strengthening the country’s fight against money laundering and related financial crimes. Here’s a breakdown of the key provisions under this new Act.

Part I: Preamble

  • Sets the short title of the Act
  • Includes the interpretation section

Part II: Money Laundering

  • Defines money laundering as specific actions involving proceeds of crime (section 3)
  • Offenses related to money laundering include:
    • Receiving, possessing, transferring, or disposing of proceeds
    • Concealing or disguising their origin

Part III: Money Laundering Supervisory Authority and Anti-Money Laundering Advisory Committee

  • The Financial Services Unit is now the Money Laundering Supervisory Authority
  • Responsible for supervising financial institutions and scheduled businesses
  • Develops anti-money laundering strategies
  • Conducts inspections to ensure compliance with the Act

Part IV: Anti-Money Laundering Supervision

  • Financial institutions and scheduled businesses must keep transaction records for a minimum of 7 years (section 16)
  • Failure to comply with this section is considered an offense
  • Financial institutions and scheduled businesses are required to report suspicious transactions to the Unit (section 19)
  • Non-compliance with this section can result in penalties

Part V: Freezing and Forfeiture

  • Procedures for freezing and forfeiting property connected to money laundering offenses (sections 29-30)
  • Allows for applying for freezing orders and freezing property

Part VI: International Cooperation

  • Includes provisions for international cooperation (section 31)
  • Helps Dominica work together with other countries in investigating and preventing money laundering and other financial crimes

Conclusion

The Money Laundering (Prevention) Act, 2011, represents a significant step forward for Dominica in its efforts to combat money laundering and enhance its financial regulatory framework. This legislation strengthens existing measures and introduces new tools for detecting, investigating, and preventing money laundering and related financial crimes.