Financial Crime World

Here is the article rewritten in markdown format:

Dominican Republic Seeks to Boost Financial Inclusion through Banking Access Points

SANTO DOMINGO, Dominican Republic - The Superintendency of Banks (SB) has unveiled a new strategic approach aimed at increasing financial inclusion in the country by enhancing banking access points.

A Decline in Registered Subagentes Bancarios (SABs)

According to data from the SB, the number of operational SABs peaked in 2017 with 2,915 establishments but has since declined. However, transacted amounts have consistently increased each year, reaching DOP67 million (approximately USD 1.21 million) by 2021.

Focus Shifts to Operational SABs

The SB’s focus has shifted from registered SABs to operational ones, which reflect actual banking access points used by the public rather than those that could potentially be used. As of 2021, there were 2,016 operational SABs, representing around 40% of all registered SABs.

Most Common Commercial Categories Operating as SABs

The most common commercial category operating as SABs are:

  • Convenience stores or “colmados” (32% market share in 2021)
  • Pharmacies and supermarkets (25% and 9%, respectively)

Financial Services Offered by SABs

SABs offer various financial services, including:

  • Balance history review
  • Deposits
  • Limited withdrawals
  • Payments
  • Remittance cash-outs
  • Prepaid cards transactions
  • Electronic transfers

In 2021, they performed a total of 15 million financial services, with the most common being cash deposits and payments, accounting for 57% of all services.

Multiple Contracts between SABs and Financial Service Providers

A new measure introduced by the SB captures the number of operational relationships between SABs and financial service providers. The data reveals that roughly 20% of operational SABs served three or more financial service providers, but accounted for 53% of all transactions in 2021.

Policy Initiatives to Promote Financial Inclusion

The SB has implemented policy initiatives to promote having multiple contracts with different financial service providers, including:

  • Establishing a new type of non-bank license called SAB network administrators
  • Onboarding and supporting SABs by providing technological platforms
  • Carrying out due diligence on behalf of financial service providers
  • Offering training and capacity building

Strategic Approach to Achieve Greater Financial Inclusion

The SB’s strategic approach aims to leverage SABs and SAB administrators to achieve greater financial inclusion and tackle banking deserts in the country. By enhancing banking access points and promoting operational relationships between SABs and financial service providers, the SB seeks to increase convenience and accessibility for consumers, ultimately driving economic growth and development.