Dominica Steps Up AML-KYC Compliance to Combat Money Laundering and Terrorist Financing
The Caribbean nation of Dominica has implemented stringent regulations to prevent money laundering and terrorist financing through its Anti-Money Laundering (AML) and Know Your Customer (KYC) measures. Financial institutions operating in the country must comply with these regulations, which include identity verification requirements outlined in the Dominica AML-KYC Regulations.
Key Provisions of the Regulations
The main provisions of the regulations establish the rights and obligations of legal and natural persons to prevent and detect money laundering and terrorist financing. The key requirements include:
- Customer Screening: Financial institutions must screen customers against lists of known or suspected terrorists, drug traffickers, and other high-risk individuals.
- Identification and Verification Procedures: Institutions must verify the identity of customers using government-issued documents such as passports and social security cards.
- Due Diligence: Institutions must perform due diligence on customers deemed Politically Exposed Persons (PEPs) or those holding public office.
Document Verification Methods
Financial institutions in Dominica are required to use document verification methods, including biometric identification documents, to confirm the authenticity of government-issued documents. This ensures that the identity of customers is verified accurately and securely.
Third-Party Services
The regulations allow for the use of third-party services, such as document verification and sanctions screening, to apply measures of due diligence. However, financial institutions remain responsible for maintaining compliance with AML and KYC obligations.
Record Retention
Dominica’s regulations require financial institutions to retain records for seven years as part of their due diligence obligations. If data is processed, collected, or managed by a third-party service provider, the institution remains responsible for collecting all necessary information without undue delay.
Conclusion
Overall, Dominica’s AML-KYC regulations aim to prevent money laundering and terrorist financing while ensuring that financial institutions comply with international standards. By understanding these requirements, financial institutions can ensure compliance and maintain a secure and transparent business environment.