Title: Dominica Strengthens Financial Compliance with New Money Laundering Regulations, 2013

Introduction

The Commonwealth of Dominica has taken a significant step to strengthen its financial regulatory framework by announcing the new Money Laundering (Prevention) Regulations, 2013. The regulations aim to prevent money laundering and terrorist financing in the island nation.

Regulations’ Structure

The new regulations consist of six parts:

1. Systems and Training
2. Identification and Other Procedures
3. Record-Keeping Procedures
4. Internal Reporting
5. Penalties
6. Miscellaneous Provisions

Systems and Training Section

Required Procedures

Under the Systems and Training section, relevant businesses must maintain procedures for identification, record-keeping, internal reporting, and internal controls to prevent money laundering. They must also provide regular training to their employees.

Consequences of Noncompliance

A person who fails to comply with these regulations could face a fine of up to $40,000 or imprisonment for up to two years.

Identification and Other Procedures Section

Customer Identification

Businesses must establish and verify the identity of their customers, with some exceptions like financial institutions and life insurance businesses with low premiums.

Customer Due Diligence

Businesses must conduct ongoing customer due diligence measures and enhance these measures for high-risk transactions.

Record-Keeping Procedures Section

This section outlines the necessary record-keeping procedures, which businesses must follow to maintain records of customers’ identification data, transactions, and internal reports.

Internal Reporting Section

Businesses must report certain transactions to the relevant authorities, such as the Money Laundering Supervisory Authority and the Financial Intelligence Unit. These reports must be made as soon as possible and contain the required information.

Miscellaneous Provisions Section

This section covers various aspects, including currency reporting, use of guidance notes, and political exposed persons.

Conclusion

These regulations mark a significant step towards strengthening Dominica’s anti-money laundering and counter-terrorist financing framework. The Commonwealth of Dominica is committed to maintaining a transparent and compliant financial system, which is essential for attracting foreign investment and fostering economic growth.