The State of Compliance Officers in the Dominican Republic
A Lack of Clarity on Roles and Responsibilities
The Dominican Republic’s growing economy and increasing global connections have led to a surge in business activity, but this growth has also highlighted a critical issue: the lack of clear understanding of compliance officers’ roles and responsibilities in the country.
According to Laura Serra Nova, a local expert on ethics and compliance, companies often confuse compliance functions with legal duties, leading to misallocated positions and resources. This confusion overlooks individuals with experience in compliance, hindering its development in the Dominican Republic.
The Consequences of Unclear Compliance Management
The lack of clarity around compliance management affects employment ethics in everyday life, as seen in the use of Labor Code regulations to reflect corporate environments that often contradict written values and ethics manuals. This situation is exacerbated by the failure of national efforts to amend and strengthen these regulations.
Key Concerns:
- Misallocated positions and resources due to confusion between compliance functions and legal duties
- Overlooked experience in compliance, hindering its development in the country
- Use of Labor Code regulations to reflect corporate environments that contradict written values and ethics manuals
- Failure of national efforts to amend and strengthen regulations
Signs of Progress
Despite the challenges, there are signs of progress in promoting compliance in the Dominican Republic. Companies can establish internal codes of ethics and procedures, which can be registered with the Ministry of Labor for approval.
Recent Developments:
- Companies can register internal codes of ethics and procedures with the Ministry of Labor
- The country’s President has made it mandatory for all ministers to sign a Code of Ethics and Conduct
Recommendations for Future Legislation
In an effort to promote compliance in the Dominican Republic, Nova suggests that future legislation should make it compulsory for companies to establish a code of compliance and ethics, approved by the Ministry, with real consequences for violations. This would help establish clear standards and prevent questionable activities from going unchecked.
Proposed Reforms:
- Make it compulsory for companies to establish a code of compliance and ethics
- Require approval by the Ministry for these codes
- Establish real consequences for violations
Conclusion
Despite challenges, the Dominican Republic’s future in terms of ethics appears bright. With increasing efforts from both public and private entities to promote a culture of compliance, the country is moving towards a greater “well-being” for its citizens.
A Bright Future Ahead:
- Increased efforts from public and private entities to promote a culture of compliance
- Greater focus on preventive methods rather than defense mechanisms
- An atmosphere of trust and mutual respect