Financial Crime World

Dominican Republic Takes Strides to Combat Financial Crimes

Enhancing Anti-Money Laundering Framework

The Dominican Republic has demonstrated a significant commitment to combating money laundering and terrorist financing by adopting key international conventions and enacting a new anti-money laundering (AML) law. The country’s efforts are aimed at bolstering its AML framework, aligning it with contemporary international standards.

New Anti-Money Laundering Law Brings Modernization

In 2017, the Dominican Republic implemented the New Anti-Money Laundering and Terrorist Financing Act (155-17), replacing the outdated 2002 law. This legislation aimed to modernize the country’s AML framework by providing a more robust, coherent, and modern legal structure. The new law:

  • Enhances regulation
  • Promotes transparency
  • Facilitates international collaboration

Regulatory Bodies Take Center Stage

The Financiero Analysis Unit (UAF) serves as the primary AML regulator in the Dominican Republic, responsible for:

  • Receiving reports of suspected financial activities
  • Analyzing and disclosing these reports
  • Playing a crucial role in coordinating policies to prevent money laundering

The National Anti-Money Laundering Committee is also key in:

  • Coordinating policies to prevent money laundering
  • Advising the Executive Power on legal and administrative actions
  • Overseeing annual budgets

Preventing Blacklisting

The new law provides mechanisms for imposing sanctions on individuals involved in illegal financial activities. By preventing the country from being placed on the Financial Action Task Force’s (FATF) ‘blacklist,’ the Dominican Republic aims to:

  • Maintain a stable economy
  • Attract foreign investment

Commitment to International Cooperation

The Dominican Republic recognizes the importance of sharing information, promoting transparency, and engaging in global efforts to combat financial crimes. The country participates in international organizations and collaborates with foreign entities to achieve this goal.

Assurance for Investors and Businesses

For investors, businesses, and individuals considering involvement in the Dominican Republic, these AML regulations provide a level of assurance and security. By staying updated with these regulations and cooperating with relevant authorities, stakeholders can contribute to a safer and more secure financial environment in the country.