Banking Regulations Tighten Up in Dominica, Experts Say

The Financial Service Unit (FSU) of the Commonwealth of Dominica has emerged as one of the most stringent regulatory bodies in the Caribbean, overseeing a wide range of financial institutions and entities.

Regulatory Authority

As a department under the Ministry of Finance, the FSU is responsible for regulating:

Credit unions
Insurance companies
Offshore banks
Money service businesses
Development bank
Buildings and loans societies
Gaming companies
Other financial entities

“We are proud to be the sole financial services regulatory authority in Dominica,” said Mr. Claudius Lestrade, Director of the Financial Services Unit. “Our team of experienced professionals is dedicated to ensuring that all financial institutions within our jurisdiction operate in a safe and sound manner.”

Scope of Regulation

The FSU’s scope of regulation includes:

Offshore banks
Credit unions
Insurance companies
Money service businesses
Development bank
Buildings and loans societies
Gaming companies
Other financial entities

In addition, the authority serves as the Money Laundering Supervisory Authority (MLSA), tasked with identifying and mitigating the risks associated with money laundering and terrorist financing.

Exceptions and Oversight

Despite its broad mandate, the FSU has carved out an exception for commercial banks and securities businesses, which fall under the purview of other regulatory bodies. Nevertheless, the authority’s presence is felt throughout the entire financial services sector in Dominica, ensuring that all players adhere to the highest standards of governance and compliance.

The FSU’s efforts have resulted in a tightening up of banking regulations in Dominica, making it a safer and more secure environment for both locals and international investors.