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Anti-Money Laundering (AML) Laws and Regulations in the Dominican Republic
The Dominican Republic has implemented various laws and regulations to combat money laundering and terrorist financing. Here are some key aspects of AML laws and regulations in the country.
Penalties for Non-Compliance with Reporting Requirements
- Imprisonment of 2-5 years and a fine of 50-100 minimum wage salaries (Article 22 of AML Law 72-02) will be imposed on individuals or entities that fail to comply with reporting requirements.
Automated Suspicious Transaction Monitoring Technology
There are no legal or regulatory requirements for the use of automated suspicious transactions monitoring technology in the Dominican Republic.
Proceeding with a Transaction after Identification as Suspicious
If there is no response from UAF regarding the reported transaction, the institution should determine if it is appropriate to proceed or not with the transaction in question.
Monitoring Transactions Outside the Jurisdiction
According to Art. 61 and 62 of AML Law 72-02, the competent authority may submit and request assistance from the competent authorities of other States for monitoring transactions outside the jurisdiction.
External Audit Report on AML Systems and Controls
There is no legal requirement for a bank’s external auditor or other external organization to report on the bank’s AML systems and controls in the Dominican Republic.
Data Protection Laws and Personal Data
The definition of personal data does not cover any direct information about KYC (Know Your Customer) in the Dominican Republic.
Restrictions on Transfer of Credit Reports
Additional prohibitions on the transfer of credit reports for KYC and credit risk analysis purposes are not considered in AML Law 72-02.
Risk-Based Approach
The regulators promote a proactive approach that is based on risk, as stated in the Newsletter No. 014-12 issued by the SIB in Oct 2012.
Independent Verification or Authentication of Identification Documentation
Legal entities accepting the identification documentation should ensure that the copies of such documentation correspond to the originals. Either a contractor’s internal verification or external authentication (notary, apostille) will be needed.
Case Law, Constitutional Law, or Other Laws that May Impact Upon the Transfer of Information
Law 172-13 of Personal Data Protection regulates the Personal Data Transfer; however, according to Art. 89 of this law, in relation to any international agreement to which the Dominican Republic is a signatory (such as information exchange treaty between the Dominican Republic and USA), shall be governed by its dispositions.
List of Case Law, Constitutional Law, or Other Laws that May Impact Upon the Transfer of Information
- Article 56, Paragraph b) of the Monetary and Financial Law No. 183-02 establishes the legal obligation of banking secrecy and confidentiality.