Trusts and Non-Profit Organisations (Registration) Regulations 2014

The Trusts and Non-Profit Organisations (Registration) Regulations 2014 (S.R.O. 11 of 2014) establish the mandatory framework for the registration and supervision of trusts and non-profit organisations (NPOs) operating in Dominica. Enacted under the authority of the Proceeds of Crime Act (Chap. 12:52), these regulations were introduced to enhance the transparency of the charitable and fiduciary sectors. By mandating a formal registration process, the legislation ensures that Dominica complies with international standards for anti-money laundering (AML) and the suppression of terrorist financing (STF), specifically those set by the Financial Action Task Force (FATF).

Legislative Purpose and Regulatory Authority

The 2014 Regulations were designed to mitigate the risks of misuse of NPOs and trusts for non-charitable or illicit purposes. The oversight of these entities is centralised under the Financial Services Unit (FSU) of the Ministry of Finance, which serves as the “Trusts and NPO Supervisor.”

The primary objectives of the regulations include:

• Identification of Beneficial Ownership: Ensuring the identities of those who own, control, or direct a trust or NPO are known to the state.
• Financial Accountability: Requiring entities to maintain records that show how funds are sourced and utilized.
• Supervisory Inspections: Empowering the FSU to conduct compliance inspections to verify that entities are adhering to the Proceeds of Crime Act and other AML/STF guidelines.

Registration Requirements and Procedures

Under the regulations, every trust or non-profit organisation must be registered if it is incorporated, formed, or otherwise established in Dominica, or if it is administered from within the state.

The Application Process

To register, an applicant must submit a written application to the FSU, accompanied by:

• The prescribed registration fee (currently EC$150).
• Details regarding the nature, purpose, objectives, and activities of the organisation.
• Identifying information for the persons who own or control the entity.
• The address in Dominica where the entity can be reached.

The Trusts and NPO Register

The Supervisor is required to establish and maintain a central Trusts and NPO Register. This register contains the contact information, objectives, and leadership details for all registered entities. While certain internal details are protected, a person may request details from the register regarding a registered NPO during normal business hours.

Exempted Entities

The regulations provide a “de minimis” exemption for very small entities to reduce the administrative burden on community-level groups. An Exempted Trust or Exempted NPO is defined as one whose:

• Gross Annual Income does not exceed EC$5,000.
• Assets do not exceed EC$10,000 in value. Exempted entities are not required to undergo formal registration under Regulation 7, though they must still operate in accordance with the general laws of Dominica.

Compliance and Enforcement

The regulations introduce significant penalties for non-compliance to ensure the integrity of the sector.

• Failure to Register: A trust or NPO that is required to register but fails to do so commits an offence. Upon summary conviction, the entity or its directors may be liable to a fine not exceeding EC$50,000.
• Duty to Provide Information: The FSU may require an applicant or a registered entity to provide additional documents or information to determine if it meets the requirements of the Proceeds of Crime Act.
• Reporting Obligations: The Supervisor is mandated to provide recommendations to the Attorney General regarding necessary changes to trust or NPO legislation to maintain international compliance standards.

Distinction from the Companies Act

It is important for organisers in Dominica to distinguish between registration as a non-profit company and registration under the NPO Regulations.

• A Non-Profit Company is incorporated under the Companies Act (Act 21 of 1994) through the Companies and Intellectual Property Office (CIPO) to gain legal personality.
• The Trusts and Non-Profit Organisations (Registration) Regulations 2014 apply after the entity is formed (whether as a company, a trust, or an association) to provide regulatory oversight by the FSU.