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 issues of corruption in Dominica, noting that while laws exist to penalize corrupt officials, enforcement is inconsistent and allegations of impunity persist among political opposition and civil society. 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 records since 2020 and lacks the authority to share 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 is characterized by its membership in the Organization of Eastern Caribbean States and the Eastern Caribbean Currency Union, with a strong emphasis on attracting foreign direct investment, particularly in sectors that create jobs and earn foreign currency. The country is recovering from the impacts of Hurricane Maria and the COVID-19 pandemic, facing challenges such as rising food and fuel prices, but is projected to grow by 4.6 percent in 2024 according to the IMF. Dominica's economy is primarily service-oriented, with significant opportunities in eco-tourism, agriculture, and renewable energy.

The investment climate in Dominica 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 ensuring that foreign investors can repatriate profits without restrictions. Dominica's legal framework supports foreign investment, with no limits on foreign control, although an Alien Landholders License is required for purchasing property.