Financial Crime World

Dominican Republic Tackles Money Laundering with Robust AML/CTF Solutions

The Dominican Republic has taken significant steps to combat money laundering and terrorist financing, establishing a comprehensive framework to prevent, detect, control, and combat these illicit activities.

Competent Authorities Take Center Stage

Several government agencies have been designated as competent authorities:

  • Public Ministry: responsible for investigating and prosecuting money laundering cases
  • Financial Analysis Unit (UAF): serves as the technical secretary of the GIF and is responsible for analyzing, identifying, and submitting financial analysis reports to the Public Ministry regarding possible money laundering infractions
  • National Directorate for Drug Control: responsible for preventing and combating drug trafficking and related crimes
  • Monetary Board: responsible for regulating the country’s monetary policy and preventing money laundering in the financial sector
  • General Directorate of Internal Taxes: responsible for collecting taxes and preventing tax evasion and money laundering
  • General Directorate of Customs: responsible for regulating imports and exports and preventing customs fraud and money laundering
  • Directorate of Casinos and Gaming: responsible for regulating the casino and gaming industry and preventing money laundering in this sector
  • Cooperative Development and Credit Institute: responsible for promoting cooperative development and preventing money laundering in this sector
  • Superintendents: Insurance, Banks, Securities, Pension Fund, Private Security: responsible for regulating their respective sectors and preventing money laundering

Additionally, any authority with regulatory or supervisory powers, as well as economic sectors subject to AML/CFT laws, are considered competent authorities.

Financial Analysis Unit (UAF) Leads the Charge

The UAF serves as the technical secretary of the GIF and is responsible for analyzing, identifying, and submitting financial analysis reports to the Public Ministry regarding possible money laundering infractions. Its primary objective is to prevent and combat illicit activities related to money laundering and terrorist financing.

Compliance Efforts Intensify

Financial and non-financial entities regulated by the AML/CFT system must continuously evaluate and enhance their compliance efforts against money laundering and terrorist financing activities. This includes:

  1. Evaluating money laundering and terrorist financing risks: identifying potential vulnerabilities and assessing the likelihood of illicit activity
  2. Developing policies, procedures, and controls to manage and mitigate risk: implementing measures to prevent and detect money laundering and terrorist financing
  3. Conducting client due diligence or enhanced due diligence: verifying the identity and legitimacy of customers
  4. Continuously monitoring transactions for suspicious activity: detecting unusual or suspicious transactions
  5. Maintaining transaction registries: recording all financial transactions
  6. Designating a compliance officer with defined functions and responsibilities: appointing an individual responsible for ensuring AML/CFT compliance

Reporting Suspicious Operations

In the Dominican Republic, regulated entities must report suspicious operations to the UAF within five business days after the transaction occurred or was attempted. Suspicious operations are defined as those that are complex, unusual, significant, or have no apparent economic or legal basis.

The UAF has published a guide for obliged subjects, enabling entities to categorize transactions that require closer examination and potentially report suspicious activities based on operating experience. Each regulatory sector has established assumptions indicative of characteristics of transactions or operations that can be considered suspicious.