Dominica Moves to Strengthen CFT Regulations

In an effort to address deficiencies in anti-money laundering (AML) and combating the financing of terrorism (CFT) supervision, Dominica has transferred the regulatory authority for its financial institutions to the Eastern Caribbean Central Bank (ECCB). This move comes after the Monetary Council recommended that the ECCB take on this responsibility in July 2016.

Strengthening Supervision

The ECCB has implemented a Risk-Based Supervision Framework for prudential supervision of its licensees. This framework aims to strike a balance between prudential supervision and AML/CFT supervision, ensuring an integrated approach to supervision. The framework includes principles, concepts, and core processes used to supervise financial institutions.

Aligning with International Best Practices

The ECCB has reviewed and revised its supervisory approach to ensure it aligns with international best practices and addresses new and emerging risks to the Eastern Caribbean Currency Union (ECCU).

Revised AML/CFT/CPF Supervision Framework

In a significant development, the ECCB has introduced a revised anti-money laundering and combating terrorism and proliferation financing (AML/CFT/CPF) Supervision Framework. This framework includes several key elements:

• AML/CFT legislation in ECCU member countries
• A Multi-lateral Memorandum of Understanding between AML/CFT supervisory authorities
• Implementation of an AML/CFT Risk-Based Onsite Examination Manual
• Partnership with key stakeholders to ensure ongoing training on AML/CFT/CPF emerging issues

Bringing Regulations in Line with International Standards

The implementation of this framework is seen as a major step forward in strengthening Dominica’s CFT regulations and bringing them in line with international standards.