Financial Crime World

Regulations for Financial Institutions in the Dominican Republic

Initial Operating Limitations

The Monetary Board can establish operating limits for new entities to ensure prudent expansion, ensuring that banks expand their services and reach responsibly.

Types of Banks

There are several types of banks in the Dominican Republic:

1. All Purpose Banks

  • Can attract deposits and perform other banking services
  • Offer a wide range of financial products and services

2. Credit Institutions

  • Focus on savings and term deposits, with conditions agreed upon by the parties
  • Provide financing options for individuals and businesses

3. Savings and Credit Banks

  • A type of credit institution that offers savings accounts
  • Encourage saving habits among citizens

4. Credit Corporations

  • A type of credit institution that focuses on corporate lending
  • Provide financial solutions to businesses and corporations

Authorization to Operate

To begin operations, banks must submit documentation to the Monetary Board, including:

  • Minimum Paid-in Capital
    • RD$90,000,000 for all purpose banks
    • RD$18,000,000 for savings and credit banks
    • RD$5,000,000 for credit corporations
  • Proof of veracity and source of invested funds
  • By-laws that comply with regulations

Board of Directors or Management

The board of directors or management must consist of:

  • Minimum Five Individuals
  • At least 40% must be professionals with expertise in financial matters or well-accredited on economic, financial, or entrepreneurial matters

Foreign Investment

The Monetary Board will determine requirements and conditions for foreign banks to operate in the Dominican Republic.

Operations and Services

All purpose banks can perform a wide range of operations and services, including:

  • Receiving deposits and issuing loans
  • Issuing drafts, payment orders, and transfers
  • Granting lines of credit
  • Discounting commercial papers
  • Acquiring and assigning commercial instruments
  • Issuing credit cards
  • Accepting letters of credit
  • Assuring monetary obligations and granting warranties
  • Engaging in foreign exchange operations
  • Establishing correspondent services with banks abroad

Additional Services

Banks can also offer:

  • Custody services for securities and goods
  • Safe deposit box services
  • Financial leasing operations
  • Invoice discounts
  • Managing automatic tellers
  • Insuring housing mortgage loans
  • Providing counseling services to investment projects
  • Offering technical assistance for economic, administrative, and companies’ organization and management feasibility studies

The Monetary Board has the regulatory power to determine the nature of new instruments or operations that may arise as a consequence of new practices.