May 12, 2025 – Roseau, Dominica – The Commonwealth of Dominica hosted the prestigious 2025 Annual Regional Compliance Summit (ARCS) at The Dominica State House, placing the spotlight on enhanced Caribbean collaboration in anti-money laundering (AML) and counter-terrorism financing (CFT). Mr. Claudius Lestrade, Director of Dominica’s Financial Services Unit (FSU), officially inaugurated the summit and detailed the country’s compliance upgrades in his opening remarks.
The speech reflected Dominica’s recent overhaul of financial regulations, driven by insights from the World Bank’s 2023 Economic Review. The review called for Caribbean-wide advancements in regulatory and tech infrastructure. Given that the FSU accounts for 14.5% of Dominica’s GDP, its modernization remains critical. Additionally, the IMF’s 2024 analysis reinforced the importance of these reforms to reinforce Dominica’s economic buffer post-pandemic.
Advancing Regional AML/CFT Efforts
The summit embraced the theme “Shaping the Future of Compliance in the Region,” with a special emphasis on integrating new technologies. “ARCS 2025 calls on us to align as Caribbean nations and find shared solutions for today’s regulatory complexities,” said Mr. Lestrade. Dominica has historically played a key role in adapting to international standards for financial oversight.
Historical analysis from the Journal of Financial Crimeacknowledged the significant role Caribbean and LATAM regulators have had in combating financial crime. Since 2009, Dominica has resolved 21 compliance deficiencies, with its FSU gaining AML supervisory powers through legislative amendments. The CFATF recognized these reforms as substantial and effective.
The Caribbean’s 2015 de-risking crisis had a severe impact on small economies. A SWIFT paper revealed that Dominica lost 40% of its correspondent banking ties between 2011 and 2020, mirroring a widespread issue across 21 CARICOM members. The IMF stressed that regulatory progress in Dominica is essential to restore and protect these vital financial relationships.
By 2023, Dominica completed all key AML/KYC and tax compliance reviews under Mr. Lestrade’s leadership, resulting in its removal from the global noncooperative list and reclassification to the grey list. The FSU remains a pivotal contributor to economic growth, notably in the credit union and offshore banking spheres.
Who Attended and What Was Showcased
ARCS 2025 welcomed an esteemed lineup of attendees: President Burton, First Husband, Finance Minister Dr. Irving McIntyre, Hon. Darren Lloyd, and St. Vincent and the Grenadines’ FIU Director LaTeisha Sandy-Marks.
Asprofin Bank’s demonstration of its RegTech framework stood out. Licensed in 2013, the bank implemented digital onboarding tools, live compliance tracking, and PEP detection in partnership with the FSU. This illustrated how Dominica’s financial institutions are embracing compliance innovation.
Key Outcomes and Future Direction
The summit emphasized the need for AI-driven financial risk evaluations, regional regulatory synchronization, and integrating compliance layers into fintech systems. These ideas reflect broader IMF strategies for sustainable Caribbean development, particularly in data-led AML governance.
Dominica’s role at ARCS 2025 cements its position as a trailblazer in regional compliance. The FSU’s strategic oversight highlights how small island nations can lead the charge toward global financial integrity.
Contact:
Name: Mr. Claudius Lestrade
Position: Director of the Financial Services Unit
Email: lestradec@dominica.gov.dm
Website: www.fsu.gov.dm
