Financial Crime World

The Dominican Republic Takes a Stand Against Financial Crime

A Safer and More Secure Financial Environment for All

The Dominican Republic has made significant strides in combating money laundering and terrorist financing by aligning its regulations with international standards. This move ensures a safer and more secure financial environment for investors, businesses, and citizens alike.

New Anti-Money Laundering and Terrorist Financing Act (Law 155-17)

In 2017, the country implemented the new Anti-Money Laundering and Terrorist Financing Act (Law 155-17), replacing outdated legislation. This law provides a robust framework to regulate money laundering and terrorist financing, enhancing transparency, promoting international collaboration, and preventing the Dominican Republic from being blacklisted by the Financial Action Task Force (FATF).

Key Provisions of the New Law

  • Requires economic agents, including banks, financial institutions, and other businesses, to maintain accurate records of their activities and beneficial owners.
  • Establishes the Financiero Analysis Unit (UAF) as the primary AML regulator, responsible for receiving, analyzing, and disclosing reports of suspected financial activities.
  • Creates several regulatory bodies to enforce AML regulations in the Dominican Republic, including the National Anti-Money Laundering Committee and the Custody and Management of Seized Assets Office.

Protecting Foreign Investments and Citizen Welfare

The new AML regulations aim to prevent the Dominican Republic from being blacklisted by the FATF, which could deter foreign investment and negatively impact the country’s economy. The law also provides mechanisms for imposing sanctions on individuals involved in illegal financial activities, safeguarding both foreign and domestic investments.

Ensuring Transparency and Collaboration

The new AML regulations promote transparency and collaboration with international organizations to combat financial crimes effectively. They facilitate access to foreign financing and participation in global efforts to prevent money laundering and terrorist financing.

Conclusion

The Dominican Republic’s commitment to combating money laundering and terrorist financing is evident through its adoption of international conventions and the enactment of the New Anti-Money Laundering and Terrorist Financing Act. These efforts align the country with global AML standards, bolster transparency, and promote collaboration with international organizations.

For Investors, Businesses, and Individuals

These AML regulations provide a level of assurance and security for investors, businesses, and individuals considering involvement in the Dominican Republic. By staying updated with these regulations and cooperating with relevant authorities, stakeholders can contribute to a safer and more secure financial environment in the country.