Financial Crime World

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Dominican Republic Takes Strides to Combat Financial Crime

The Dominican Republic has intensified its efforts to combat money laundering and terrorist financing by implementing stringent anti-money laundering (AML) measures. The country has ratified international treaties and conventions aimed at preventing illicit financial activities within its borders.

International Agreements

  • The Inter-American Convention Against Corruption
  • The United Nations Convention Against Transnational Organized Crime
  • Law 72-02, enacted in 2002, to regulate areas covered by these conventions

New Anti-Money Laundering and Terrorist Financing Act

The Dominican Republic’s Executive Power promulgated the new Anti-money Laundering and Terrorist Financing Act (155-17) on June 1, 2017, modernizing its anti-money laundering framework. The New Law aims to regulate money laundering and terrorist financing more effectively, promote transparency, and facilitate international collaboration.

Key Objectives

  • Enhanced regulation
  • Transparency
  • International cooperation
  • Imposing sanctions on individuals involved in illegal financial activities
  • Safeguarding foreign and domestic investments
  • Protecting the welfare of Dominican citizens

Protecting against FATF Blacklisting

The New Law plays a critical role in preventing the Dominican Republic from being placed on the Financial Action Task Force’s (FATF) ‘blacklist’, which could deter foreign investment and harm the economy. The law provides mechanisms for imposing sanctions on individuals involved in illegal financial activities, thereby safeguarding both foreign and domestic investments.

AML Regulators

  • Financiero Analysis Unit (UAF): responsible for receiving, requesting, analyzing, and disclosing reports of suspected financial activities and cash transactions exceeding $10,000.
  • National Anti-Money Laundering Committee
  • Custody and Management of Seized Assets Office
  • Central Bank of the Dominican Republic
  • Superintendence of Banks
  • National Drug Council
  • Secretariat of Finance

Conclusion

The Dominican Republic’s commitment to combating money laundering and terrorist financing is evident through its adoption of international conventions and the enactment of the New Anti-Money Laundering and Terrorist Financing Act. These efforts align the country with global AML standards, bolster transparency, and promote collaboration with international organizations. For investors, businesses, and individuals considering involvement in the Dominican Republic, these AML regulations provide a level of assurance and security.