Dominica Country Summary

FATF Status

CFATF Statement re AML Strategic Deficiencies: November 20th, 2013​

In November 2011 the CFATF brought to the attention of its Members certain jurisdictions including Dominica with significant strategic deficiencies in its AML/CFT regime. With a view to encouraging expeditious rectification of the identified strategic deficiencies Dominica and the CFATF developed an Action Plan with identified target dates to address the strategic deficiencies that existed in Dominica’s national architecture to combat money laundering and the financing of terrorism.

The CFATF issued a public statement in May 2013 recommending that Dominica enact legislation and issue relevant guidelines addressing their AML/CFT deficiencies. Dominica has since brought into force significant mechanisms to address its AML/CFT deficiencies. Dominica and the CFATF should continue to work together to ensure that Dominica’s reform process is completed.

Compliance with FATF Recommendations

The last Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Dominica was undertaken in 2023. According to that Evaluation, Dominica was deemed Compliant for 16 and Largely Compliant for 17 of the FATF 40 Recommendations. It was deemed Highly Effective for 0 and Substantially Effective 2 with regard to the 11 areas of Effectiveness of its AML/CFT Regime.

Dominica faces challenges related to corruption and crime, with allegations of corrupt practices among officials and inconsistent enforcement of anti-corruption laws. While the country has established legislative frameworks and institutions like the Integrity Commission to combat corruption, issues such as inadequate resources for prosecution and limited public accountability persist, contributing to a climate of impunity.

In terms of crime, Dominica serves as a transit point for human smuggling and drug trafficking, particularly cocaine and cannabis, although organized crime remains relatively low-profile and localized. The country is also vulnerable to financial crimes, including money laundering and cybercrimes, exacerbated by its offshore financial sector and limited law enforcement resources, which hinder effective responses to these threats.

The economy of Dominica, a member of the Organization of Eastern Caribbean States and the Eastern Caribbean Currency Union, is projected to grow by 4.2% in 2025, although it remains susceptible to external shocks such as natural disasters and global economic downturns. The government is focused on fostering sustainable economic growth through a revised macroeconomic framework, emphasizing infrastructure improvements, particularly in housing and tourism, while also modernizing the agricultural sector to enhance food security. To attract foreign investment, Dominica offers various incentives, particularly in sectors like eco-tourism, ICT, and renewable energy, and maintains a liberal investment climate with no restrictions on foreign ownership, although foreign investors must obtain an Alien Landholders License for property purchases.