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DOMINICAN REPUBLIC RELAXES BANKING REGULATIONS, BOOSTS FINANCIAL INCLUSION

The Dominican Republic has made significant strides in relaxing banking regulations and laws, paving the way for increased financial inclusion in the country. The recent changes have allowed foreign financial intermediation entities to operate freely, granted equal treatment to domestic banks, and established parameters to regulate their entry into the market.

Financial Intermediation Entities

According to data, there are now 49 entities that carry out financial intermediation operations in the Dominican Republic, including:

  • 18 multiple banks
  • 15 savings and credit banks
  • 10 savings and loan associations
  • 4 credit corporations
  • 2 public institutions

Fintech Sector

The relaxation of banking services has also led to the establishment of a robust fintech sector, with over 68 active companies offering digitalization services such as:

  • Mobile wallets
  • Digital onboarding
  • Credit evaluation
  • Bill negotiation

National Strategy for Financial Inclusion (ENIF)

The government is implementing the National Strategy for Financial Inclusion (ENIF), which aims to promote financial inclusion through coordinated policy actions that increase access to quality financial products and services. The ENIF seeks to create a favorable environment for a dynamic financial ecosystem that meets the needs of the financial user.

Banking Subagents

In addition, the Dominican Monetary Board has approved regulations on banking subagents, allowing entities to provide specific banking operations and services in rural areas. This move is expected to increase access to banking services for people living in these areas and promote financial inclusion.

Regulatory Standards

The country’s regulatory standards follow international trends, adhering to the principles established in Basel Agreements I and II and closely monitoring the system operated by the financial and monetary authorities.

LEADING SUB-SECTORS IN DOMINICAN REPUBLIC’S BANKING SECTOR

  • Credit Corporations
  • Fintech
  • Payment Facilitators Companies
  • Contactless transactions
  • Online Banking

The Dominican Republic’s banking sector is a significant contributor to the country’s GDP, fostering production and export of products and services through traditional financing and capital market structures. Digital innovations offer banks numerous opportunities to increase financial inclusion by providing customers with better access to financial services.

RESOURCES

For more information on the Dominican Republic’s banking regulations and laws, contact:

  • Francesca Fermín, Commercial Specialist: francesca.fermin@trade.gov
  • DR Central Bank
  • Superintendency of Banks
  • Superintendency of the Stock Market
  • Dominican Association of FinTech Companies (Adofintech)
  • PH Law – Law Firm