Dominican Republic Financial Professionals Must Comply with AML/CTF Regulations
Overview
The Dominican Republic government has established strict regulations to prevent money laundering and terrorist financing in the country. As a result, financial professionals must comply with Anti-Money Laundering and Combating the Financing of Terrorism (AML/CTF) regulations.
Key Authorities Responsible for AML/CTF Enforcement
National Committee against Money Laundering and Terrorism Financing
The main authority responsible for enforcing AML/CTF regulations in the Dominican Republic is the National Committee against Money Laundering and Terrorism Financing. This committee consists of several government agencies, including:
- Public Ministry
- Financial Analysis Unit (UAF)
- National Directorate for Drug Control
- Monetary Board
- General Directorate of Internal Taxes
- General Directorate of Customs
- Directorate of Casinos and Gaming
- Cooperative Development and Credit Institute
- Superintendents of Insurance, Banks, Securities, Pension Funds, and Private Security
Financial Analysis Unit (UAF)
Key Responsibilities
The UAF is an autonomous entity that serves as the technical secretary of the National Committee against Money Laundering and Terrorism Financing. Its main task is to analyze, identify, and submit financial analysis reports to the Public Ministry regarding possible money laundering or terrorist financing activities.
Compliance Training Programs
Requirements for Regulated Entities
Financial and non-financial regulated entities must constantly evaluate and intensify their compliance efforts against money laundering and terrorist financing activities. To comply with AML/CTF regulations in the Dominican Republic, all regulated parties should adopt, develop, and execute a compliance program focused on a risk-based approach, with policies and procedures that include:
- Evaluation of money laundering and terrorist financing risks
- Capability to manage and mitigate risk
- Client due diligence or enhanced due diligence
- Continued monitoring
- Maintenance of transaction registries
- Designation of a compliance officer with determined functions and responsibilities
Reporting Suspicious Operations
Obligations for Regulated Entities
In the Dominican Republic, regulated entities must report suspicious operations to the UAF within five business days after the transaction occurred or was attempted. Suspicious operations are defined as transactions that are complex, unusual, significant, or do not have an obvious economic or legal basis.
By understanding the key authorities responsible for enforcement, the role of the UAF, compliance training programs, and reporting obligations, financial professionals can effectively manage their risk and maintain a secure and compliant business environment.