Countries/Jurisdictions of Primary Concern - Dominica

Bureau of International Narcotics and Law Enforcement Affairs
Report

Dominica is a key offshore center with a considerable international business company (IBC) presence and Internet gaming. In 2014, money laundering cases involved external proceeds from fraudulent investment schemes, advance fee fraud schemes, and the placement of euros related to questionable activities conducted in other surrounding jurisdictions. Domestic money laundering is chiefly linked to narcotics activities.

Dominica reports a noticeable increase in the amount of European currency transported to and from the neighboring islands of Guadeloupe and Martinique. Dominica hosts three Internet gaming companies, three offshore banks, and over 16,000 IBCs. Bearer shares are permitted, but beneficiaries of the bearer shares must be disclosed to financial institutions (FIs) as part of the FIs’ know-your-customer programs.

Under Dominica’s Economic Citizenship Program, individuals can obtain citizenship for approximately $100,000 for an individual and $200,000 for a family of up to four persons. There is no residency requirement and passport holders may travel to most Commonwealth countries without a visa. An application for economic citizenship must be made through a government-approved local agent and requires a fee for due diligence or background check purposes. An in-person interview also is required.

For additional information focusing on terrorist financing, please refer to the Department of State’s Country Reports on Terrorism, which can be found here: http://www.state.gov/j/ct/rls/crt/

Do FINANCIAL INSTITUTIONs engage in currency transactions related to international narcotics trafficking that include significant amounts of US currency; currency derived from illegal sales in the U.S.; or illegal drug sales that otherwise significantly affect the U.S.: NO

criminalizATION OF money laundering:

“All serious crimes” approach or “list” approach to predicate crimes: All serious crimes

Are legal persons covered: criminally: YES civilly: YES

Know-your-customer (KYC) rules:

Enhanced due diligence procedures for PEPs: Foreign: YES Domestic: YES

KYC covered entities: Banks, venture risk capital, money transmission services, money and securities brokers, traders in foreign exchange, money lending and pawning, money exchanges, mutual funds, credit unions, building societies, trust businesses, insurance businesses, securities exchange, real estate businesses, car dealers, casinos, courier services, jewelry businesses, Internet gaming and wagering entities, management companies, asset management and advice services, custodial and nominee service providers, registered agents, telecommunications companies, and utility companies

REPORTING REQUIREMENTS:

Number of STRs received and time frame: 141 in 2014

Number of CTRs received and time frame: Not applicable

STR covered entities: Banks, venture risk capital, money transmission services, money and securities brokers, traders in foreign exchange, money lending and pawning, money exchanges, mutual funds, credit unions, building societies, trust businesses, insurance businesses, securities exchange, real estate businesses, car dealers, casinos, courier services, jewelry businesses, Internet gaming and wagering entities, management companies, asset management and advice services, custodial and nominee service providers, registered agents, telecommunications companies, and utility companies

money laundering criminal Prosecutions/convictions:

Prosecutions: 14 in 2014

Convictions: 0 in 2014

Records exchange mechanism:

With U.S.: MLAT: YES Other mechanism: YES

With other governments/jurisdictions: YES

Dominica is a member of the Caribbean Financial Action Task Force (CFATF), a FATF-style regional body. Its most recent mutual evaluation can be found at: https://www.cfatf-gafic.org/index.php/documents/mutual-evaluation-reports/dominica-1

Enforcement and implementation issues and comments:

The Proceeds of Crime Statutory Rules and Orders (SR) 10 of 2014 makes provision for a Code of Practice cited as the Anti-Money Laundering and Suppression of Terrorist Financing Code of Practice. The update ensures every entity puts proper controls in place to detect and prevent money laundering and terrorist financing. Secondly, it provides guidance to every financial services entity and professional to appropriately apply the requirements of the Money Laundering Prevention Act of 2011. This update also promotes the use of an appropriate and proportionate risk-based approach to the detection and prevention of money laundering and terrorist financing.