Financial Crime World

DOMINICA’S COMPLIANCE WITH FINANCIAL CRIMES LAWS UNDER SCRUTINY

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A recent evaluation by a leading international organization has shed light on Dominica’s compliance with financial crimes laws, revealing both strengths and weaknesses in the country’s efforts to combat money laundering and terrorist financing.

Strengths and Weaknesses

According to the report, Dominica was found to be:

  • Largely compliant in several areas, including:
    • Assessing risk and applying a risk-based approach (R.1)
    • National cooperation and coordination (R.2)
    • Customer due diligence (R.10)
    • Regulation and supervision of financial institutions (R.26)
  • Compliant in five areas, including:
    • The money laundering offence (R.3)
    • Confiscation and provisional measures (R.4)
    • Terrorist financing offence (R.5)
    • Internal controls and foreign branches and subsidiaries (R.18)
    • Powers of supervisors (R.27)
  • Partially compliant in several areas, including:
    • Targeted financial sanctions related to terrorism and terrorist financing (R.6)
    • Non-profit organizations (R.8)
    • Financial institution secrecy laws (R.9)
    • Record keeping (R.11)
    • DNFBPs: customer due diligence (R.22)
  • Non-compliant in two areas, including:
    • Targeted financial sanctions related to proliferation (R.7)
    • Higher-risk countries (R.19)

Recommendations

The report highlights the importance of strengthening Dominica’s financial regulations and supervision to prevent money laundering and terrorist financing. The country’s authorities must also:

  • Improve cooperation with international partners
  • Enhance public awareness about the dangers of financial crimes

Government Response

In response to the report, Dominica’s government has pledged to implement reforms to strengthen its financial system and improve compliance with international standards. This move is seen as a crucial step towards enhancing the country’s reputation and attracting foreign investment.

Overall, the evaluation serves as a reminder of the importance of continuous improvement in combating financial crimes, and Dominica’s efforts to strengthen its financial regulations and supervision will be closely monitored by the international community.