Dominica Financial Regulatory Bodies Tighten Grip on Market Stability

In an effort to strengthen oversight and ensure stability within the country’s financial system, Dominica’s Monetary Council has approved a revamped regulatory framework. This enhanced system aims to harmonize supervision across national regulators, promoting more effective and efficient monitoring of the sector.

Key Components of the New Framework

• Regulatory Oversight Committee (ROC): Comprising the Eastern Caribbean Securities Regulatory Commission (ECSRC) and the Eastern Caribbean Central Bank (ECCB), this committee facilitates information sharing among regulatory bodies. It also provides a platform for discussing policy measures to mitigate threats to sector stability.

National Regulators

• Eastern Caribbean Securities Regulatory Commission (ECSRC): Regulates and supervises securities business within the Eastern Caribbean Currency Union.
• Eastern Caribbean Central Bank (ECCB): Maintains monetary and financial stability in the region. It oversees institutions licensed under the Banking Act and serves as the supervisory authority for Anti-Money Laundering/Combating the Financing of Terrorism regulations for licensed financial institutions.

Objectives of the Enhanced Framework

• Promote Greater Transparency: By fostering cooperation among regulatory bodies, ensuring a more transparent financial environment.
• Ensure Accountability: By holding regulatory bodies accountable for their actions and decisions.
• Foster Cooperation: Among national regulators, promoting effective communication and coordination to mitigate threats to sector stability.

Benefits of the Enhanced Framework

The revamped regulatory framework aims to ensure a more resilient and secure financial environment for Dominica. It will promote greater transparency, accountability, and cooperation among regulatory bodies, ultimately contributing to market stability and confidence in the country’s financial system.