Dominican Republic Seeks to Maintain Reforms in Bid to Curb Financial Crime Trends

The Dominican Republic has made significant strides in reducing its risk of money laundering and terrorist financing, according to the latest Basel AML Index. With a score of 5.21, indicating a moderate level of risk, the country has marked an improvement from last year’s reading.

Progress Made

Despite this progress, neighboring Haiti remains the country with the highest risk index of money laundering and terrorist financing in Latin America. Experts warn that continued vigilance is needed to prevent backsliding and ensure that reforms are sustained.

The Basel AML Index: A Composite Measure

The Basel AML Index is a comprehensive measure that takes into account 16 different indicators related to:

• Corruption: Assessing the level of corruption within the country’s institutions
• Financial standards: Evaluating the strength of financial regulations and oversight
• Political disclosure: Measuring the transparency of political processes and decision-making
• Rule of law: Examining the effectiveness of laws and their enforcement

The data used is sourced from reputable organizations such as:

• The Financial Action Task Force (FATF)
• Transparency International
• The World Bank
• The World Economic Forum

Focus on Maintaining Momentum

Financial crime trends in the Dominican Republic will be closely watched by authorities in 2023, with a focus on maintaining the momentum gained through reforms aimed at strengthening anti-money laundering and combating the financing of terrorism (AML/CFT) measures. While progress has been made, much work remains to be done to address the root causes of financial crime and ensure that the country’s economy is protected from illicit activities.