Here is the converted article in Markdown format:
New Guidelines for Identifying Individuals in Dominica
Dominica has introduced new regulations to combat money laundering and terrorist financing, requiring businesses to implement enhanced due diligence (EDD) measures to identify individuals.
What is EDD?
Enhanced Due Diligence (EDD) is a more comprehensive approach to verifying an individual’s identity, including Politically Exposed Persons (PEPs), high-risk customers, and those with complex or unusual backgrounds. It involves multiple channels of verification and obtaining documentation that proves their identity.
New Requirements for Businesses
As of [date], businesses operating in Dominica are required to implement EDD measures when:
- Onboarding new customers
- Processing transactions above a certain threshold
- Dealing with higher-risk clients
This includes verifying an individual’s identity through multiple channels and obtaining documentation that proves their identity.
PEPs and High-Risk Customers
The regulations require businesses to identify PEPs, which include individuals holding public office, family members of PEPs, and close associates. Businesses must use AML (Anti-Money Laundering) Screening services to verify an individual’s status as a PEP or high-risk customer.
Reliance on External Services
Businesses may seek the services of third-party providers to implement EDD measures, but they remain liable for maintaining all compliance and fulfilling AML/KYC obligations.
Record Retention
The regulations require businesses to retain data for at least seven years, including information processed, collected, and managed by relevant third-party providers. Businesses must collect necessary information from third-party providers without undue delay.
Consequences of Non-Compliance
Failure to comply with the new regulations may result in severe penalties, including fines and even criminal prosecution.
Shufti Pro Solution
To help businesses navigate these complex requirements, Shufti Pro offers a range of solutions, including AML Screening services for PEPs and high-risk customers. Our team is committed to providing expert guidance and support to ensure compliance with Dominica’s regulations.
By implementing EDD measures and adhering to the new guidelines, businesses can help prevent money laundering and terrorist financing in Dominica while maintaining a safe and secure environment for their customers.