Dominica Faces Warning from US Treasury Over Money Laundering Concerns

US Department of the Treasury Issues Advisory on Dominica’s Counter-Money Laundering Regime

The United States Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) has issued an advisory warning banks and financial institutions operating in the US to be vigilant for suspicious transactions involving Dominica. The advisory highlights the Caribbean island nation’s counter-money laundering regime as plagued by serious systemic problems.

Key Issues with Dominica’s Counter-Money Laundering Regime

• A lack of effective supervision over offshore banks and International Business Companies
• Identified as non-cooperative in the fight against money laundering by the Financial Action Task Force on Money Laundering (FATF)
• Commitment to secrecy and lack of effective enforcement mechanisms create opportunities for money launderers

Guidance for US Financial Institutions

Banks and financial institutions operating in the US are advised to give enhanced scrutiny to all transactions:

• Originating in or routed through Dominica
• Involving entities organized or domiciled in Dominica
  • Examine transactions for suspicious activity and report them if necessary