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 frameworks like the Integrity in Public Office Act to promote transparency, the effectiveness of these measures is hampered by limited resources and personnel in prosecutorial bodies, as well as a lack of public access to financial disclosures.

In terms of criminal activity, Dominica is primarily a transit point for human smuggling and drug trafficking, particularly cocaine and cannabis, although organized crime remains minimal. The nation has made strides in updating its legislative frameworks to combat money laundering, yet vulnerabilities persist due to insufficient law enforcement training and resources, alongside a challenging economic environment that can facilitate financial crimes.

The Commonwealth of Dominica, a member of the Organization of Eastern Caribbean States and the Eastern Caribbean Currency Union, actively promotes foreign direct investment (FDI) to stimulate job creation and economic growth, particularly in sectors like eco-tourism and renewable energy. Despite facing vulnerabilities from external shocks such as climate change and global economic downturns, the government is committed to rebuilding from past natural disasters and enhancing its infrastructure, particularly in housing and tourism. With a projected economic growth of 4.6% in 2024, Dominica's investment climate is bolstered by various incentives for foreign investors, including tax holidays and the ability to repatriate profits, although the country lacks a bilateral investment treaty with the United States.