Title: Dominica Cracks Down on Financial Crimes: New Guidelines for Money Services Businesses

Subtitle: Strengthening AML/CFT Measures to Prevent Money Laundering and Terrorist Financing

The Commonwealth of Dominica’s Financial Services Unit (FSU) within the Ministry of Finance has issued a new Guidance Note for Money Services Businesses (MSBs) to bolster their efforts in preventing money laundering and terrorist financing activities. This comprehensive document outlines the importance of robust anti-money laundering and counter-terrorist financing (AML/CFT) measures.

Overview of MSB Regulations in Dominica

• The Money Services Business Act, 2010, regulates MSBs in Dominica.
• MSBs serve as critical access points for individuals and businesses to transfer funds.
• They present opportunities for illicit activities.

Key Terms and Concepts

• Money laundering: Process of making illegally-gained proceeds appear legal.
• Terrorist financing: Providing financial resources to terrorists or terrorist organizations.
• Proliferation financing: Providing financial resources for the production of weapons of mass destruction.

Risk-Based Approach and Due Diligence

• MSBs must undertake a risk-based approach.
• Due diligence measures for all customers are essential.

Identifying Suspicious Activity

• New or one-off transactions.
• Monitoring agents and distribution networks.

Record-Keeping and Reporting

• MSBs are required to maintain accurate records.
• Suspicious transactions should be reported to the Financial Intelligence Unit (FIU).

Adherence to International Standards and Best Practices

• MSBs should comply with international regulatory bodies, such as FATF and CFATF.

Consequences of Non-Compliance

• Violations can negatively impact Dominica’s international standing.
• Non-compliance can lead to serious legal consequences for the MSB and its personnel.

Regular Inspections and Audits

• The FSU plans to conduct regular inspections and audits to ensure MSB compliance.