Dominica's Emerging AML/CFT Leadership at ARCS 2025
Objectives at the Annual Regional Compliance Summit and Dominica's Historical Efforts in Shaping the Future of Regulatory Compliance
The event highlighted a growing theme in Caribbean business: "Shaping the Future of Compliance in the Region." This included broad discussions about the need to adopt technologies to ensure regional compliance. Mr. Claudius Lestrade, in relation to the summit's objectives, said, "The regional summit represents a call for a growing need for collaboration among Caribbean nations, where we will explore common solutions to complex regulatory challenges, particularly in terms of financial crime and digital frameworks." Dominica and the Caribbean nations are no strangers to evolving regulatory compliance in accordance with global financial regulatory requirements.
According to the Journal of Financial Crime (2007), the collective efforts of regulators in the Caribbean and Latin American (LATAM) region have contributed to the evolving battle against financial crime. The FATF noted that, in this case, Dominica had made significant reforms to its regulatory structure since 2009, addressing 21 areas of non-compliance. The Financial Services Unit further obtained authority as a money laundering supervisory body through legal changes, with the CFATF noting that Dominica's supervisory body made "sufficient" changes and progress in policy-related decisions.
In 2015, the Caribbean nations faced a de-risking en masse, as several global jurisdictions closed financial relationships. The Society for Worldwide Interbank Financial Telecommunication in their information paper indicated that 21 out of 23 CARICOM nations had experienced the termination of correspondent banking relationships since an analysis of the data concluded that Dominica had a 40% decrease in correspondent banking relationships between 2011 and 2020. The IMF acknowledged that improved regulatory measures in Dominica are essential for preserving banking relationships with the global community because smaller nations have experienced the most significant impact from de-risking.
Fast forward to 2023, the Financial Services Unit of Dominica, under the purview of Mr. Claudius Lestrade, completed all AML/KYC and external tax risk assessments, resulting in Dominica being removed from the list of noncooperative jurisdictions globally and thereafter being moved to the grey list. The Financial Services Unit, since then, continues to be a core driver of the economy, primarily through growth in the credit union sector and the global banking business.
Notable Attendees of the Summit
Aside from Mr. Claudius Lestrade, notable attendees of this year's Annual Regional Compliance Summit included HE President Burton, the First Husband, the Minister for Finance, Economic Development, Climate Resilience and Social Security, the Honorable Dr. Irving McIntyre, the Parliamentary Secretary (Ministry of Environment, Rural Modernization, Kalinago Upliftment and Constituency Empowerment), the Honorable Darren Lloyd, and the Director of the Financial Intelligence Unit of St. Vincent and the Grenadines, LaTeisha Sandy-Marks.
Case Study: Asprofin Bank's RegTech Innovation
At the "Shaping the Future" showcase, Asprofin Bank from Dominica's offshore banking sector exemplified innovation through its operations. Chartered in 2013, Asprofin Bank adopted electronic methods for Know Your Customer (KYC) processes and implemented real-time monitoring along with Politically Exposed Person (PEP) screening tools from World Compliance (previously known as World Check). The Financial Services Unit (FSU) directly collaborated with this institution, evidencing the feasibility of implementing regulatory technology (RegTech) solutions for private financial institutions to meet international regulatory standards.
Conclusion and the Road Ahead
The summit concluded that the development of financial risk scoring automation, the implementation of RegTech capabilities across financial institutions, regional harmonization initiatives, and built-in anti-money laundering controls and filters during fintech development constitute aid for all financial businesses to adhere to regional financial laws. The takeaways from the summit are similar to the results noted on IMF Day, which explained that the Economic Development Activity of the Caribbean region will expand beyond Foreign Direct Investment (FDI) and the current upgrade of data reporting systems for fiscal and Anti-Money Laundering (AML) monitoring procedures.
At ARCS 2025, the alignment of effective policy, along with regional cooperation and smart technology, positioned Dominica as a leader in Caribbean financial compliance and as a key participant in this summit. Dominica's FSU serves as proof that small nations can establish future financial integrity systems for other jurisdictions to emulate.
About The Financial Services Unit of the Commonwealth of Dominica
The Financial Services Unit (FSU) is the regulatory body for Dominica's financial sector, including offshore and domestic banking, insurance, credit unions, and other non-bank financial institutions. Operating under the Ministry of Finance, the FSU is led by Director Mr. Claudius Lestrade and is responsible for ensuring compliance with local laws and international standards, particularly in anti-money laundering and counter-terrorism financing. The Unit plays a vital role in safeguarding the integrity, stability, and reputation of Dominica's financial system.
Contact:Name: Mr. Claudius LestradePosition: Director of the Financial Services UnitEmail: lestradec@dominica.gov.dm
Website: https://dominica.gov.dm/
SOURCE: Dominica
View the original press release on ACCESS Newswire
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