Financial Crime World

Dominica Faces Challenges in Financial Crime Investigation Methods, Says FATF Report

A Call for Action: Addressing Financial Crime in Dominica

A recent report from the Financial Action Task Force (FATF) has shed light on several areas of concern in Dominica’s efforts to combat financial crime. The report assesses the country’s implementation of global standards for anti-money laundering and combating the financing of terrorism.

Key Findings: Areas of Concern

  • National Cooperation and Coordination: Dominica falls short of expectations in this key area, with inadequate laws and mechanisms for freezing and confiscating assets related to financial crime.
  • Terrorist Financing Offences: The country lacks effective penalties for terrorist financing offences, making it vulnerable to these types of crimes.
  • Lack of Transparency: There is no publicly available beneficial ownership register, making it difficult to track the true owners of companies and other entities.

Weaknesses in Dominica’s Financial Crime Investigation Methods

  • Inadequate Penalties: The laws in Dominica do not provide for adequate penalties for money laundering or terrorist financing offences.
  • Insufficient Asset Freezing and Confiscation: The country lacks effective mechanisms for freezing and confiscating assets related to financial crime.
  • Poor Regulation and Supervision of Non-Financial Businesses and Professions (DNFBPs): DNFBPs are vulnerable to money laundering risks due to inadequate regulation and supervision.

Recommendations from the FATF

To address these challenges, the FATF recommends that Dominica:

  1. Strengthen its Legal Framework: Improve laws related to anti-money laundering and combating the financing of terrorism.
  2. Enhance National Cooperation and Coordination: Improve mechanisms for freezing and confiscating assets related to financial crime.
  3. Improve Customer Due Diligence and Record-Keeping Requirements: Enhance requirements for customer due diligence and record-keeping.
  4. Establish a Publicly Available Beneficial Ownership Register: Make it easier to track the true owners of companies and other entities.
  5. Improve Supervision of DNFBPs: Enhance regulation and supervision of non-financial businesses and professions.

Conclusion

The report serves as a reminder of the importance of effective anti-money laundering measures in preventing the financing of terrorism and other financial crimes. Dominica’s efforts to address these concerns will be closely monitored by the FATF, which aims to promote global cooperation in combating financial crime.