Financial Crime World

Dominican Republic Enhances Banking Regulation Compliance in a Digital Age

The Dominican Republic is taking significant steps to strengthen its banking regulation compliance framework in the face of a rapidly evolving financial landscape.

Banking Sector Overview

Current Regulatory Environment

  • The country’s current regulatory environment permits the operation of various financial intermediation entities, including:
    • Banks
    • Savings and loan associations
    • Credit corporations
    • Public institutions
  • There are currently 49 such entities operating in the Dominican Republic, with:
    • 18 multiple banks
    • 15 savings and credit banks
    • 10 savings and loan associations
    • 4 credit corporations
    • 2 public institutions

Fintech Sector Expansion

  • The country’s financial technology (fintech) sector is expanding rapidly, with over 68 active fintech companies offering digitalization services such as:
    • Mobile wallets
    • Digital onboarding
    • Credit evaluation
    • Bill negotiation

National Strategy for Financial Inclusion (ENIF)

  • Launched by the government to promote financial inclusion through the coordination of financial policy actions.
  • Aims to generate a favorable environment for a dynamic financial ecosystem, focused on the needs of the financial user.

Benefits of Digitalization

  • Provides customers with better access to financial services
  • Facilitates broader financial education in the community
  • Helps provide formal credit to a greater number of people
  • Can have a significant effect on growth and productivity

Regulation Standards

  • Consider modern international trends and adhere to strict compliance with Basel Agreements I and II.
  • Financial and monetary authorities closely monitor and operate the system to ensure stability and security.

Sub-Sectors for Growth and Innovation

  • Credit corporations
  • Fintech companies
  • Payment facilitators
  • Contactless transactions
  • Online banking

Conclusion

The Dominican Republic’s banking sector is well-positioned to capitalize on trends and continue to contribute significantly to the country’s GDP. By promoting financial inclusion and increasing access to financial services, we can drive economic growth and productivity.