Money Laundering is essentially the process by which the direct and/or indirect proceeds of crime are channelled through financial transactions and/or institutions to conceal its true origin and ownership.

Terrorism Financing is the usage of funds to commit or support a terrorist act.

The Financial Action Task Force (FATF) is an inter-governmental body established in 1989 by a Group of Seven (G-7) Summit in Paris, initially to examine and develop measures to combat money laundering. The FATF has developed a series of Recommendations that are recognised as the international standard for combating of money laundering and the financing of terrorism and proliferation of weapons of mass destruction. Dominica is part of the Caribbean Financial Action Task Force (CFATF) which is an organisation of states and territories of the Caribbean basin which have agreed to implement common counter-measures against money laundering. Moreover, Dominica being part of CFAFT has agreed to adopt and implement the 40+ 9 special recommendations of FAFT.

Essential Features of an Effective AML Programme:

  • Designation of Compliance Officer
  • Reporting & Record Keeping
  • Risk-Based Approach
  • Independent Audit Function
  • Ongoing Training Programme
  • Know Your Customers/Employees (KYC/E)