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.

The US State Department's Investment Climate Statement for 2024 highlights ongoing issues with corruption in Dominica, noting that while laws exist to penalize corrupt officials, enforcement is inconsistent and allegations of impunity persist. The Integrity in Public Office Act mandates annual financial disclosures from government officials, but the Integrity Commission, responsible for monitoring compliance, has not updated its reports since 2020 and lacks the authority to share financial disclosures with prosecutorial bodies. Additionally, the Director of Public Prosecutions faces challenges due to insufficient resources to effectively prosecute complex corruption cases.

The economy of Dominica, a member of the OECS and ECCU, is projected to grow by 4.6 percent in 2024, despite challenges such as the aftermath of Hurricane Maria and the impacts of global events like the COVID-19 pandemic and rising prices due to geopolitical conflicts. The government actively promotes foreign direct investment, particularly in sectors like eco-tourism and renewable energy, while also focusing on infrastructure improvements and agricultural modernization to enhance food security.

Dominica's investment climate is characterized by strong government encouragement for foreign direct investment, particularly in sectors that create jobs and earn foreign currency. The government offers various incentives, including tax holidays and duty-free imports for businesses, while maintaining a legal framework that allows foreign investors to hold up to 100% of their investments. Key opportunities exist in eco-tourism, renewable energy, and agriculture, although the country faces challenges from external shocks and the aftermath of natural disasters.