New Regulations Aim to Strengthen Anti-Money Laundering Measures in Dominica
The government of Dominica has introduced new regulations aimed at strengthening its anti-money laundering measures, in a bid to combat financial crimes and protect the integrity of the financial system.
Enhancing Risk Management Systems
The new regulations require financial institutions to put in place risk management systems to identify and verify the identity of customers who are politically exposed persons. This measure is designed to prevent money laundering and terrorist financing by ensuring that financial institutions have adequate controls in place to detect and prevent suspicious transactions.
Strengthening Customer Identification Procedures
Banks must adequately identify and verify respondent institutions with whom they conduct cross-border correspondent banking and other similar relationships. This will help to prevent financial crimes and protect the integrity of the financial system.
Exemptions and Record Keeping Requirements
The regulations provide exemptions from the identification procedure in certain circumstances, such as where a customer is a person carrying on a relevant business which has been licensed or registered, and is supervised for anti-money laundering by the Authority. Financial institutions are also required to maintain records of all transactions, including information about the identity of customers.
Reporting Suspicious Transactions
The regulations require financial institutions to report any suspicious transactions to the Financial Intelligence Unit. This will help to detect and prevent financial crimes and protect the integrity of the financial system.
Key Changes
- Financial institutions must put in place risk management systems to identify and verify the identity of customers who are politically exposed persons.
- Banks must adequately identify and verify respondent institutions with whom they conduct cross-border correspondent banking and other similar relationships.
- Exemptions from the identification procedure will be granted in certain circumstances, such as where a customer is a person carrying on a relevant business which has been licensed or registered, and is supervised for anti-money laundering by the Authority.
- Financial institutions must maintain records of all transactions, including information about the identity of customers.
- Suspicious transactions must be reported to the Financial Intelligence Unit.
Background
The government of Dominica has been working to strengthen its anti-money laundering measures in recent years, following concerns raised by the international community about the country’s vulnerability to financial crimes. The new regulations are designed to address these concerns and bring Dominica in line with international standards on combating money laundering and terrorist financing.