Financial Crime World

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Dominica Reports Suspicious Activity in Fight Against Money Laundering and Terrorism Financing

In an effort to combat money laundering and terrorism financing, Dominica has strengthened its efforts by reporting suspicious activity to the Financial Intelligence Unit (FIU). The FIU is responsible for receiving, analyzing, and disseminating financial information to counter these illicit activities.

Understanding Money Laundering and Terrorism Financing

Money laundering is the process of disguising the source of illegally obtained property. Terrorist financing involves providing financial support to terrorist organizations. Both are major threats to global security and economies.

Dominica’s Financial Intelligence Unit (FIU)

To combat these threats, Dominica has established a Financial Intelligence Unit (FIU), which receives disclosures from the financial sector about suspected proceeds of crime or potential financing of terrorism. The FIU then analyzes this information and transmits it to competent authorities for prosecution.

International Cooperation

The Financial Action Task Force (FATF) is an inter-governmental body that sets out policies to combat money laundering and terrorist financing. Dominica is a member of the FATF, along with 36 other countries. The Caribbean Financial Action Task Force (CFATF) is another regional body that aims to achieve effective implementation of anti-money laundering measures.

Reporting Suspicious Activity

Under Dominica’s Money Laundering (Prevention) Act No. 8 of 2011 and Suppression of Financing of Terrorism Act No. 9 of 2011, financial institutions and designated non-financial businesses and professions (DNFBPs) are required to report suspicious transactions to the FIU. These reports must be made promptly in a form approved by the Director of the Unit.

What Constitutes Suspicious Activity

Suspicious activity can include any transaction that does not make sense to the financial institution, is unusual for that particular client, or appears to be done only for the purpose of hiding or obfuscating a transaction. This can include:

  • Transactions that are inconsistent with the known profile of the customer
  • Requests for currency in large denomination notes
  • Non-disclosure of the source of funds
  • Dubious explanations as to the source of funds

Identifying and Reporting Suspicious Activity

Financial institutions and DNFBPs must take steps to identify any activity they suspect may be linked to money laundering or terrorist financing. If they know or suspect there is such a link, they must report it to the FIU.

Submitting Reports to the FIU

The FIU can receive reports manually by downloading an STR form from their website or requesting one directly. Completed forms can be sent via email or courier to the Director of the Unit at Corner of Fields Lane and Independence Street, Roseau, Commonwealth of Dominica.

Conclusion

Dominica’s efforts to combat money laundering and terrorist financing are crucial in maintaining global security and stability. By reporting suspicious activity, financial institutions and DNFBPs play a vital role in disrupting these illicit activities.