National Security Minister Rayburn Blackmoore has said that banks in Dominica should verify that nonprofit organisations hold the required ministerial licence before opening accounts for them.
The minister raised the issue at a recently held press conference.
He said the government had paused some incorporation work while it carries out more thorough due diligence on applicants and directors. He cited cases in which people named as directors allegedly told police they knew little about the organisations concerned.
The registrar of companies explained that an organisation seeking to incorporate as a nonprofit company must obtain approval from the minister.
Its articles must set out the required restrictions; it cannot have authorised share capital and must have at least three directors. Money raised or earned may be used for the organisation’s purposes, but profits should not be distributed to members for personal benefit.
Blackmoore said, “Most nonprofits contribute positively to Dominica.”
He argued that a small number of bad actors could misuse the sector and expose the country to financial crime risks.
Officials urged directors to understand their legal duties before applying, “and to ensure that banks receive the appropriate documents.”
The minister did not announce a blanket prohibition on nonprofit registrations or give a date for the end of the due diligence pause.
