Risk-Based Approach to Compliance in Dominican Republic

The Dominican Republic has made significant strides in implementing the Financial Action Task Force (FATF) Recommendations, with a focus on risk-based compliance. A recent assessment by the FATF reveals that the country has achieved substantial progress in various areas.

Key Achievements

• The Dominican Republic has implemented measures to assess and apply a risk-based approach to combating money laundering and terrorist financing (R.1).
• The government has established a system of national cooperation and coordination (R.2), enabling effective communication between law enforcement agencies and financial institutions.
• Notable improvements have been made in the legal framework, including:
  • Creation of a comprehensive money laundering offense (R.3)
  • Provisions for confiscation and provisional measures (R.4)

Areas Requiring Further Attention

• Strengthening the legislative framework regarding terrorist financing offenses (R.5)
• Improving regulation of correspondent banking relationships (R.13)
• Enhancing oversight of money or value transfer services (R.14)
• Strengthening reporting requirements for suspicious transactions (R.20)
• Improving internal controls (R.18)

Comprehensive Approach to AML/CFT

The Dominican Republic has also been working to strengthen its anti-money laundering laws and regulations, including:

• Provisions related to politically exposed persons (R.12)
• Wire transfers (R.16)
• Reliance on third parties (R.17)
• Regulation of DNFBPs in terms of customer due diligence (R.22) and other measures (R.23)

Conclusion

While there is still room for improvement, the Dominican Republic’s commitment to risk-based compliance demonstrates its dedication to combating money laundering and terrorist financing. With continued efforts and cooperation from international partners, the country can further enhance its reputation as a responsible player in the global financial community.