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Sanctions:
None applicable
____________________________________________________
Offshore Jurisdiction Blacklists:
As a recognised offshore finance jurisdiction this country may fall
under various country offshore jurisdiction blacklists.
____________________________________________________
US State Department Money Laundering Report - 2011:
Dominica is a major offshore center with a large international
business company (IBC) presence and internet gaming.
Dominican officials believe most of the money laundering cases
under investigation involve external proceeds from fraudulent
investment schemes. There has also been evidence of advance
fee fraud schemes. Domestically driven money laundering
primarily has a nexus to drug-related activities. Money remitters
have been used to transfer funds to questionable locations, and
there has been a surge in the placement of euros in the banking
system related to questionable activities in Guadeloupe and
Martinique
Dominica’s financial sector includes two offshore banks, 15,321
IBCs, twenty insurance companies, nine money services
businesses, four internet gaming companies and one building and
loan society. There are no free zones in Dominica. Shell
companies are not permitted. Bearer shares are permitted;
however, these shares are immobilized by the requirement that
the beneficial owners of the bearer shares must be disclosed.
Under Dominica’s Economic Citizenship Program, individuals can
obtain citizenship for approximately $75,000 for an individual and
$100,000 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 is also
required.
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 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
Legal persons covered: criminally: YES civilly: YES
CRIMINALIZATION OF TERRORIST FINANCING:
Ability to freeze terrorist assets without delay: YES
UN lists of designated terrorists or terrorist entities distributed to
financial institutions: YES
KNOW-YOUR-CUSTOMER RULES:
Covered entities: Banks, agricultural credit institutions, money
exchangers, accountants, notaries, gaming centers, auto dealers
and securities dealers
Enhanced due diligence procedures for PEPs: Foreign: YES
Domestic: YES
SUSPICIOUS TRANSACTION REPORTING REQUIREMENTS:
Covered entities: Banks, agricultural credit institutions, money
exchangers, notaries, gaming centers, and securities dealers
Number of STRs received and time frame: 63 from January to
September 2010
Number of CTRs received and time frame: Not applicable
MONEY LAUNDERING CRIMINAL
PROSECUTIONS/CONVICTIONS:
Prosecutions: Two
Convictions: None
Assets forfeited: criminally: None civilly: None
RECORDS EXCHANGE MECHANISM:
With U.S.: YES
With other governments/jurisdictions: YES
Dominica is a member of the Caribbean Financial Action Task
Force (CFATF), a Financial Action Task Force (FATF)-style
regional body. Its most recent mutual evaluation can be found
here http://www.cfatf-gafic.
org/downloadables/mer/Dominica_3rd_Round_MER_(Final)
_English.pdf
ENFORCEMENT AND IMPLEMENTATION ISSUES AND
COMMENTS:
In the past, subjects of United States criminal investigations have
been identified as exploiting Dominica’s Economic Citizenship
Program. However, Dominica has made a concerted effort to
improve the regulation of this program.
The Government of the Commonwealth of Dominica (GOCD)
should fully implement and enforce the provisions of its legislation
and provide additional resources for regulating offshore entities
and stringently regulating internet gaming entities. Additional
awareness training for on-financial businesses and professions,
to ensure their understanding and compliance of STR reporting
requirements, would significantly strengthen the GOCD's
regulatory framework. The GOCD should also move expeditiously
to become a party to the UN Convention against Transnational
Organized Crime.
____________________________________________________
US State Dept Narcotics Report 2012 (introduction):
The Eastern Caribbean (EC), encompassing the seven
independent countries of Antigua and Barbuda, Barbados,
Dominica, Grenada, St. Kitts and Nevis, St. Lucia, and St. Vincent
and the Grenadines, is situated directly in the corridor for illicit
narcotics transshipment primarily from Venezuela to North
America, Europe, and domestic Caribbean markets. A 2011 UN
report found violent crime, much of which is linked to the drug
trade, reaching epidemic proportions in the region. Marijuana is a
staple crop in the region and cultivated primarily for local use.
Police in the region do not have the equipment or training they
need to be effective. Outmoded criminal codes hinder a strong
response to organized crime groups. The Regional Security
System (RSS), a treaty-based international body to which all
seven nations belong, has begun a regional polygraph vetting
program, but corruption remains a stubborn problem in some
countries, undermining trust within and between EC law
enforcement organizations. Collectively, the EC nations
communicate and coordinate poorly in attacking transnational
crime. The EC islands and the RSS participate in the U.S. led
Caribbean Basin Security Initiative (CBSI). CBSI-funded law
enforcement training began in the first half of 2011. CBSI funded
equipment deliveries will begin in the first half of 2012. All EC
countries are signatories to the 1988 UN Convention against Illicit
Traffic in Narcotic Drugs and Psychotropic Substances.
The Commonwealth of Dominica Police Force (CDPF) has a drug
squad which is mandated to lead on drug enforcement. Drug
squad operations focus on major traffickers. The Dominican Coast
Guard has drug interdiction authority, and a vessel acquired in
2009 permits routine patrols. Dominica is particularly concerned
with cannabis cultivation in the mountainous zones which are
often impenetrable except by foot patrols. The Financial
Intelligence Unit is operational and is assisting in identifying
Proceeds of Crime Act violations in drug trafficking cases.
The FIU referred the first major money laundering and Proceeds
of Crime Act case to the Director of Public Prosecutions in 2010.
Although the investigation is ongoing, charges have been filed
against several individuals and a trial is expected in 2012.
Legislation requires record-keeping and reporting on precursor
chemicals and the importation of pseudoephredrine, ephedrine
and pharmaceutical products containing those two chemicals.
Dominica is a party to the three UN Drug Conventions and the UN
Convention against Corruption. Its bilateral maritime agreement
with the United States does not include over-flight provisions. It is
a party to the Inter-American Convention Against Corruption, the
Inter-American Convention on Mutual Assistance in Criminal
Matters., the Inter-American Firearms Convention, and the Inter-
American Convention Against Terrorism. Lastly, Dominica has a
limited maritime counterdrug bilateral agreement, an extradition
treaty and a Mutual Legal Assistance Treaty in force with the U.S.
Dominica estimates 210 acres of cannabis is cultivated annually,
primarily for local consumption. During the year, Dominican police
eradicated 15 separate cultivations over 13 acres and 120,574
cannabis plants. Dominica officials made 496 drug seizures which
included 1.7 MT of cannabis, and 62 kg of cocaine. They
encountered no drug laboratories. During 2011 Dominica
reported 327 drug related arrests, 347 prosecutions—including
nine major drug traffickers, and 187 convictions.
Dominica has a Drug Prevention Unit engaging youth and officials
say it is moderately effective. Dominica does not have a drug
rehabilitation clinic. Dominica reported 90 percent of the drugs
transiting the country go to Guadeloupe, Antigua, and St. Martin.
Dominica officials estimate 10% of the cocaine and 25% of the
cannabis transiting the country are consumed locally.
For Full report, click here
____________________________________________________
US State Dept Trafficking in Persons Report 2011
(introduction):
No report available
____________________________________________________
US State Dept Terrorism Report 2009
No report available
____________________________________________________
Links:
Worldwide AML Legislation (International Bar Association)
None applicable
____________________________________________________
Offshore Jurisdiction Blacklists:
As a recognised offshore finance jurisdiction this country may fall
under various country offshore jurisdiction blacklists.
____________________________________________________
US State Department Money Laundering Report - 2011:
Dominica is a major offshore center with a large international
business company (IBC) presence and internet gaming.
Dominican officials believe most of the money laundering cases
under investigation involve external proceeds from fraudulent
investment schemes. There has also been evidence of advance
fee fraud schemes. Domestically driven money laundering
primarily has a nexus to drug-related activities. Money remitters
have been used to transfer funds to questionable locations, and
there has been a surge in the placement of euros in the banking
system related to questionable activities in Guadeloupe and
Martinique
Dominica’s financial sector includes two offshore banks, 15,321
IBCs, twenty insurance companies, nine money services
businesses, four internet gaming companies and one building and
loan society. There are no free zones in Dominica. Shell
companies are not permitted. Bearer shares are permitted;
however, these shares are immobilized by the requirement that
the beneficial owners of the bearer shares must be disclosed.
Under Dominica’s Economic Citizenship Program, individuals can
obtain citizenship for approximately $75,000 for an individual and
$100,000 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 is also
required.
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 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
Legal persons covered: criminally: YES civilly: YES
CRIMINALIZATION OF TERRORIST FINANCING:
Ability to freeze terrorist assets without delay: YES
UN lists of designated terrorists or terrorist entities distributed to
financial institutions: YES
KNOW-YOUR-CUSTOMER RULES:
Covered entities: Banks, agricultural credit institutions, money
exchangers, accountants, notaries, gaming centers, auto dealers
and securities dealers
Enhanced due diligence procedures for PEPs: Foreign: YES
Domestic: YES
SUSPICIOUS TRANSACTION REPORTING REQUIREMENTS:
Covered entities: Banks, agricultural credit institutions, money
exchangers, notaries, gaming centers, and securities dealers
Number of STRs received and time frame: 63 from January to
September 2010
Number of CTRs received and time frame: Not applicable
MONEY LAUNDERING CRIMINAL
PROSECUTIONS/CONVICTIONS:
Prosecutions: Two
Convictions: None
Assets forfeited: criminally: None civilly: None
RECORDS EXCHANGE MECHANISM:
With U.S.: YES
With other governments/jurisdictions: YES
Dominica is a member of the Caribbean Financial Action Task
Force (CFATF), a Financial Action Task Force (FATF)-style
regional body. Its most recent mutual evaluation can be found
here http://www.cfatf-gafic.
org/downloadables/mer/Dominica_3rd_Round_MER_(Final)
_English.pdf
ENFORCEMENT AND IMPLEMENTATION ISSUES AND
COMMENTS:
In the past, subjects of United States criminal investigations have
been identified as exploiting Dominica’s Economic Citizenship
Program. However, Dominica has made a concerted effort to
improve the regulation of this program.
The Government of the Commonwealth of Dominica (GOCD)
should fully implement and enforce the provisions of its legislation
and provide additional resources for regulating offshore entities
and stringently regulating internet gaming entities. Additional
awareness training for on-financial businesses and professions,
to ensure their understanding and compliance of STR reporting
requirements, would significantly strengthen the GOCD's
regulatory framework. The GOCD should also move expeditiously
to become a party to the UN Convention against Transnational
Organized Crime.
____________________________________________________
US State Dept Narcotics Report 2012 (introduction):
The Eastern Caribbean (EC), encompassing the seven
independent countries of Antigua and Barbuda, Barbados,
Dominica, Grenada, St. Kitts and Nevis, St. Lucia, and St. Vincent
and the Grenadines, is situated directly in the corridor for illicit
narcotics transshipment primarily from Venezuela to North
America, Europe, and domestic Caribbean markets. A 2011 UN
report found violent crime, much of which is linked to the drug
trade, reaching epidemic proportions in the region. Marijuana is a
staple crop in the region and cultivated primarily for local use.
Police in the region do not have the equipment or training they
need to be effective. Outmoded criminal codes hinder a strong
response to organized crime groups. The Regional Security
System (RSS), a treaty-based international body to which all
seven nations belong, has begun a regional polygraph vetting
program, but corruption remains a stubborn problem in some
countries, undermining trust within and between EC law
enforcement organizations. Collectively, the EC nations
communicate and coordinate poorly in attacking transnational
crime. The EC islands and the RSS participate in the U.S. led
Caribbean Basin Security Initiative (CBSI). CBSI-funded law
enforcement training began in the first half of 2011. CBSI funded
equipment deliveries will begin in the first half of 2012. All EC
countries are signatories to the 1988 UN Convention against Illicit
Traffic in Narcotic Drugs and Psychotropic Substances.
The Commonwealth of Dominica Police Force (CDPF) has a drug
squad which is mandated to lead on drug enforcement. Drug
squad operations focus on major traffickers. The Dominican Coast
Guard has drug interdiction authority, and a vessel acquired in
2009 permits routine patrols. Dominica is particularly concerned
with cannabis cultivation in the mountainous zones which are
often impenetrable except by foot patrols. The Financial
Intelligence Unit is operational and is assisting in identifying
Proceeds of Crime Act violations in drug trafficking cases.
The FIU referred the first major money laundering and Proceeds
of Crime Act case to the Director of Public Prosecutions in 2010.
Although the investigation is ongoing, charges have been filed
against several individuals and a trial is expected in 2012.
Legislation requires record-keeping and reporting on precursor
chemicals and the importation of pseudoephredrine, ephedrine
and pharmaceutical products containing those two chemicals.
Dominica is a party to the three UN Drug Conventions and the UN
Convention against Corruption. Its bilateral maritime agreement
with the United States does not include over-flight provisions. It is
a party to the Inter-American Convention Against Corruption, the
Inter-American Convention on Mutual Assistance in Criminal
Matters., the Inter-American Firearms Convention, and the Inter-
American Convention Against Terrorism. Lastly, Dominica has a
limited maritime counterdrug bilateral agreement, an extradition
treaty and a Mutual Legal Assistance Treaty in force with the U.S.
Dominica estimates 210 acres of cannabis is cultivated annually,
primarily for local consumption. During the year, Dominican police
eradicated 15 separate cultivations over 13 acres and 120,574
cannabis plants. Dominica officials made 496 drug seizures which
included 1.7 MT of cannabis, and 62 kg of cocaine. They
encountered no drug laboratories. During 2011 Dominica
reported 327 drug related arrests, 347 prosecutions—including
nine major drug traffickers, and 187 convictions.
Dominica has a Drug Prevention Unit engaging youth and officials
say it is moderately effective. Dominica does not have a drug
rehabilitation clinic. Dominica reported 90 percent of the drugs
transiting the country go to Guadeloupe, Antigua, and St. Martin.
Dominica officials estimate 10% of the cocaine and 25% of the
cannabis transiting the country are consumed locally.
For Full report, click here
____________________________________________________
US State Dept Trafficking in Persons Report 2011
(introduction):
No report available
____________________________________________________
US State Dept Terrorism Report 2009
No report available
____________________________________________________
Links:
Worldwide AML Legislation (International Bar Association)
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| Further Tables |
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*Please note that FATF deems that a country has significant aml deficiencies if any
of the 'Core' Recommendations, R1, R5, R10, R13, SRII, or SRIV are rated either
Partially of Non-Compliant. These are marked in red.
For FATF to remove a country from the regular follow-up process, it has to be rated
Compliant or Largely Compliant in the above mentioned Core Recommendations
and the following Key Recommendations: -
R3, R4, R23, R26, R35, R36, R40, SRI, SRIII, SRV
Please also note that any risk assessment should take into consideration all
follow-up reports.
of the 'Core' Recommendations, R1, R5, R10, R13, SRII, or SRIV are rated either
Partially of Non-Compliant. These are marked in red.
For FATF to remove a country from the regular follow-up process, it has to be rated
Compliant or Largely Compliant in the above mentioned Core Recommendations
and the following Key Recommendations: -
R3, R4, R23, R26, R35, R36, R40, SRI, SRIII, SRV
Please also note that any risk assessment should take into consideration all
follow-up reports.
| DOMINICA |
| KnowYourCountry |
|
|
| Last Updated: 16 April 2012 |