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 practices, enforcement is inconsistent and allegations persist, particularly regarding the Citizenship by Investment program. The Integrity in Public Office Act mandates annual disclosures from government officials, but the Integrity Commission, responsible for monitoring compliance, has not updated its reports since 2020 and lacks the capacity to effectively prosecute corruption cases. Overall, the political opposition and civil society continue to express concerns about the government's commitment to addressing corruption.

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. Despite challenges such as the aftermath of Hurricane Maria and the impacts of global events like the COVID-19 pandemic and rising prices, the International Monetary Fund forecasts a growth of 4.6 percent for 2024, supported by ongoing reconstruction efforts and a focus on sustainable economic growth.

The investment climate in Dominica is characterized by strong government support for foreign direct investment (FDI), particularly in sectors that create jobs and enhance local economic benefits. The government offers various incentives, including tax holidays and duty-free imports for approved projects, while maintaining a legal framework that allows foreign investors to own up to 100% of their investments. Dominica's focus on eco-tourism, renewable energy, and agricultural modernization presents significant opportunities for investors.