Financial Crime World

Financial Crimes Investigations Under Scanner as Dominica’s Progress Evaluated by FATF

A recent report by the Financial Action Task Force (FATF) has assessed Dominica’s efforts to prevent financial crimes such as money laundering and terrorist financing, highlighting key areas of compliance and non-compliance.

Key Areas Evaluated

The Mutual Evaluation Report evaluated several key areas, including:

  • Money Laundering and Terrorist Financing Regulations: The report noted compliant ratings for recommendations R.1 (Risk Assessment and Application of Risk-Based Approach), R.10 (Customer Due Diligence), R.3 (Money Laundering Offense), and R.5 (Terrorist Financing Offense).
  • Law Enforcement and Investigation: Dominica received compliant ratings for recommendations R.30 (Responsibilities of Law Enforcement and Investigative Authorities) and R.31 (Powers of Law Enforcement and Investigative Authorities). However, it was found to be partially compliant in areas such as regulation and supervision of financial institutions (R.26) and DNFBPs (R.28).
  • International Cooperation: The report evaluated Dominica’s international cooperation efforts, including recommendations related to guidance and feedback (R.34), sanctions (R.35), and mutual legal assistance (R.37). While the country received compliant ratings for these areas, it was found to be not yet rated for recommendations R.39 (Extradition) and R.40 (Other Forms of International Cooperation).

Areas of Non-Compliance

The report noted partial compliance in several areas, including:

  • National Cooperation and Coordination (R.2)
  • Targeted Financial Sanctions related to Terrorism and Terrorist Financing (R.6)
  • Non-Profit Organizations (R.8)
  • Transparency and Beneficial Ownership of Legal Persons (R.24)

Recommendations for Improvement

The FATF evaluation provides a comprehensive assessment of Dominica’s progress in implementing measures against financial crimes. The ratings will guide the country in strengthening its financial crime prevention policies and practices, ensuring that it remains vigilant in combating money laundering and terrorist financing.

Overall, the report highlights areas where Dominica needs to improve its compliance with international standards to prevent financial crimes. By addressing these weaknesses, the country can strengthen its financial system and reduce the risk of money laundering and terrorist financing.