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Not really a dictatorship but a sovereignty. And has nothing to do with communism either because it's closer to a presidential power system but with leaders elected through a council and not by the people themselves.
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Dictatorships don't have anything to do with communism outside of Russia following both ideas in the past. New Monarchy's stated goals sound innocuous, but can be taken in a really bad way. It has the potential to be an easily abused system and we know from history that handing someone absolute power absolutely means they will become corrupt.
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Just your opinion. A few people becoming corrupted doesn't mean all will. A Monarchy as the faction name implies isn't a dictatorship or communism because even a elected official or ruler in a Monarchy doesn't have full control of ruling power. Such powers are spread throughout the government and the ruler of rulers act as a place head or representive of such powers through bloodlines. They can show off their powers but no one person holds all the power unlike a dictatorship.