This year, Dominica played a prominent role in the Caribbean’s efforts to enhance financial compliance by hosting the 2025 Annual Regional Compliance Summit (ARCS) at The Dominica State House.
A report by the Financial Service Unit of government, published on Yahoo!Finance, provided details and listed regional approaches to anti-money laundering and countering financing of terrorism (AML/CFT) as central areas of focus at the event.
The official opening was conducted by Mr. Claudius Lestrade, the Director of the FSU, which oversees domestic banks, offshore banks, credit unions, and money service businesses on island.
His opening remarks reportedly highlighted the ongoing efforts to strengthen compliance measures–defined as adherence to financial laws, rules, and regulations–within Caribbean financial systems, reflecting a broader regional push for more robust regulation and technological innovation in response to evolving global standards.
Recent reforms and international reports played a critical role in the selection of the summit’s themes and discussions, with Lestrade’s speech following updates to Dominica’s central bank regulations, driven by the 2023 World Bank Economic Review. This review emphasized the need for strong regulatory and technological frameworks in Caribbean nations.
Additionally, the IMF’s June 2024 report underscored that Dominica’s post-pandemic fiscal strategies require a strong regulatory framework to support economic stability.
Along those lines, the Financial Services Unit states that it contributes 14.5% to Dominica’s GDP, and has been actively implementing compliance reforms to meet these new demands, aiming to future-proof the country’s financial sector against emerging risks.
Regional collaboration and technological advancement in compliance were also examined.
“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,” Lestrade stated.
Historically, Caribbean countries, including Dominica, have been working to improve their regulatory environments, said the FSU.
The press release from FSU also shared that since 2009, Dominica has made substantial reforms, addressing 21 areas of non-compliance as noted by the FATF, and strengthening its supervisory authority over money laundering activities.
These efforts, asserts the release, have been recognized internationally, with Dominica’s regulatory body making “sufficient” progress in adopting more effective policies.
Banking relationship challenges have significantly impacted small Caribbean nations like Dominica. For instance, between 2011 and 2020, Dominica experienced a 40% reduction in correspondent banking relationships, as reported by the Society for Worldwide Interbank Financial Telecommunication (SWIFT), due to global banks terminating accounts in response to heightened concerns; a process referred to as “de-risking”.
As a result, the IMF, in its reports, has acknowledged that improving regulatory standards was critical for maintaining banking relationships with the global financial community.
In response, the FSU states that in recent years, the Unit has successfully completed comprehensive AML/KYC assessments, leading to Dominica’s removal from the list of non-cooperative jurisdictions and placing it on the grey list, thereby restoring some trust and banking connectivity. It further said that this progress has been vital for the growth of Dominica’s credit unions and international banking activities, which remain central to the country’s economy.
Innovative examples of regulatory technology implementation, exemplified by Asprofin Bank, a Dominica offshore institution, were highlighted. Since its founding in 2013, Asprofin Bank adopted electronic KYC procedures, real-time transaction monitoring, and Politically Exposed Person (PEP) screening tools from World Compliance.
The Financial Services Unit stated that it collaborated directly with the bank, demonstrating that private financial institutions can effectively utilize regulatory technology solutions to meet international standards.
The event concluded with a consensus that advancing financial risk scoring automation, expanding RegTech capabilities, and regional harmonization are essential for strengthening compliance.
As the IMF’s analysis indicates, Caribbean economic activity is poised to grow beyond foreign direct investment, driven by improved data reporting and AML monitoring systems.