Money Services Business Act No. 8 of 2010
The Money Services Business Act No. 8 of 2010 establishes the regulatory framework for non-banking financial services in Dominica. It empowers the Financial Services Unit (FSU), under the Ministry of Finance, to license, supervise, and enforce compliance among entities such as money transmitters, cheque cashers, currency exchangers, and issuers of money orders or travellers’ cheques.
The Act defines Money Services Businesses (MSBs) to include operations like money transmission, cheque cashing, currency exchange, and money order issuance or redemption. It also allows the Governor in Council to extend the definition via Gazette notices.
Licensed entities must meet detailed conditions:
- Maintain minimum net worth and paid-up capital
- Have at least two fit-and-proper directors approved by the FSU
- Submit annual audited financial statements
- Comply with AML/CFT obligations and retain records for at least seven years
Applications for licenses require extensive documentation, including corporate incorporation details, financial projections, management structure, auditor information, and a compliance plan.
Roles and Responsibilities of the FSU
Established in 2008, the Financial Services Unit regulates all non-bank financial services, including MSBs, working closely with the Financial Intelligence Unit (FIU) and adhering to global AML/CFT standards like CFATF/FATF. It monitors entities through both on-site inspections and off-site surveillance to ensure robust compliance.
The FSU also oversees enforcement actions, such as issuing revocation orders via official Gazette notices to terminate operations of non-compliant services, thereby safeguarding the integrity of the Dominican financial system.
Regulatory Context and International Standards
By enforcing license requirements, AML/CFT rules, and recordkeeping mandates, the Act aligns Dominica with regional and international financial integrity standards. License revocation supports Dominica’s compliance with CFATF and FATF peer reviews.
Implementation under Chapter 78:82 of Dominica’s Revised Laws of 2017 ensures that only authorized and well-regulated money services operate within the country, preserving consumer protection and market stability.
Benefits and Ongoing Developments
The Act’s oversight framework bolsters investor confidence, deters financial crime, and fosters trust in electronic money transfers and related services, a boon for both businesses and consumers. Recent enhancements include digital reporting systems for regulated entities, risk-based supervision, and real-time data oversight.
Potential enhancements under consideration involve strengthening the FSU’s digital capabilities, expanding formal cooperation with global enforcement bodies, and streamlining licensing procedures without compromising regulatory standards.