Global Financial Crime Trends

Global Financial Crime Trends in Dominica: A Complex Picture Emerges

Despite its small size, Dominica has become a significant player in the global financial crime landscape. The island nation’s unique location in the eastern Caribbean makes it an attractive transit point for various forms of illicit activity.

Human Trafficking and Smuggling

While limited information is available on human trafficking in Dominica, there are indications that the country may be a destination or transit point for victims from Haiti and the Dominican Republic. Some residents have reported instances of Haitians being lured to Portsmouth with false promises of easy access to the US.

Concerns: It remains unclear whether these cases constitute human trafficking.
Vulnerabilities: Dominica’s proximity to Martinique and Guadeloupe makes it vulnerable to human trafficking flows from South America to other Caribbean islands and Europe.

Drug Trafficking

Dominica has become a significant player in the global cocaine trade, with its vast shoreline and maritime borders making it an attractive route for traffickers. The country’s Drug Squad and Coast Guard have made efforts to combat this threat, but they are severely under-resourced and unable to take their efforts to the next level.

Financial Crimes

Dominica is considered a growing offshore financial center and potential money laundering hub. The country has a high presence of anonymous offshore financial institutions with no published beneficial ownership, fraudulent investment schemes, and advance-fee fraud schemes.

Challenges: While it has updated its legislative and institutional frameworks to counter money laundering, vulnerabilities remain in the judicial system’s inadequate training and awareness of anti-money laundering processes.

Corruption

Perceived levels of corruption in Dominica are modest, but the Office of the Director of Public Prosecutions faces challenges related to inadequate prosecution of cases, a lack of regulations concerning bribery and corruption procedures, resources, and public support.

International Cooperation: Despite these challenges, Dominica has ratified most international treaties and conventions for organized crime and is committed to international cooperation.

Criminal Justice and Security

Dominica’s judiciary is independent and generally guarantees a fair trial, but courts often suffer from under-resourcing, understaffing, and inefficiency. The Stock Farm Prison is on par with international standards, but staff shortages in the judicial system and detentions lead to long pre-trial detentions and challenges.

Economic and Financial Environment

Dominica’s economy is growing, with a high presence of anonymous offshore financial institutions and potential money laundering hub. However, vulnerabilities remain in the judicial system’s inadequate training and awareness of anti-money laundering processes.

Challenges: The country also faces challenges related to its poor economic status, with agriculture and tourism being the main sources of income for locals.

Civil society organizations in Dominica enjoy freedom of assembly, and NGOs actively participate in social development initiatives and freedom of the press is respected. However, little is known about an actual witness or victim protection programme, and funds are allocated to support police, prosecutors, and victim restitution.

Government Initiatives: The government has also carried out educational and awareness-raising activities on crime and violence prevention.

In conclusion, Dominica’s unique location in the eastern Caribbean makes it a significant player in the global financial crime landscape. While challenges remain in combating human trafficking, drug trafficking, financial crimes, corruption, and criminal justice and security, the country is committed to international cooperation and has made efforts to improve its legislative and institutional frameworks.