ECCB Tightens Regulatory Requirements for Banks in Dominica

Enhanced Financial Stability and Soundness

The Eastern Caribbean Central Bank (ECCB) has introduced new prudential standards for banks operating in Dominica, as mandated by the Banking Act of 2015. This move aims to enhance the stability and soundness of the financial sector in the country.

Key Provisions of the Prudential Standards

• The ECCB will issue regulations as necessary to ensure that banks comply with the provisions of the Banking Act.
• Recommendations for new regulations will be made to the Minister from time to time.
• Banks must develop effective anti-money laundering (AML) policies and procedures.

Guidance Notes on Anti-Money Laundering

The ECCB has issued guidance notes on AML for licensed financial institutions in Dominica. These guidelines, first introduced in 1995, include measures such as:

*   Customer identification
*   Transaction verification
*   Record retention
*   Reporting of suspicious activity

Compliance with Local Laws

The ECCB’s guidance notes are designed to complement the more comprehensive legislation and regulations passed by Dominica and other Eastern Caribbean Currency Union (ECCU) member territories. In cases where the requirements conflict, local laws will take precedence.

Positive Step towards Financial Stability

The tightening of regulatory requirements for banks in Dominica is seen as a positive step towards enhancing financial stability and promoting transparency in the country’s financial sector. It reflects the ECCB’s commitment to ensuring that banks operating in the region adhere to high standards of governance and risk management.