Dominican Republic Steps Up Efforts Against Money Laundering
The Dominican Republic has made significant strides in combating money laundering and terrorist financing by implementing stringent anti-money laundering (AML) measures that align with international standards. The country’s commitment to preventing illicit financial activities is evident through its ratification of key international treaties and conventions.
New Anti-Money Laundering Law Enhances Regulation
The New Anti-Money Laundering and Terrorist Financing Act 155-17, promulgated on June 1, 2017, replaced the outdated Anti-Money Laundering Act 72-02 of 2002. This new legislation provides a more robust and modern legal framework for regulating money laundering and terrorist financing.
Primary Objectives
- Enhance regulation to prevent money laundering and terrorist financing
- Promote transparency in financial transactions
- Facilitate international collaboration against financial crimes
Protecting Against FAFT Blacklisting
The New Law also includes provisions aimed at preventing the Dominican Republic from being placed on the Financial Action Task Force’s (FATF) ‘blacklist.’ This designation could deter foreign investment and negatively impact the country’s economy.
Mechanisms for Sanctions
- Impose sanctions on individuals involved in illegal financial activities
- Safeguard both domestic and foreign investments
AML Regulators Play Crucial Role
The Financiero Analysis Unit (UAF) serves as the primary AML regulator in the Dominican Republic, responsible for receiving, requesting, analyzing, and disclosing reports of suspected financial activities.
Key Responsibilities
- Coordinate policies to prevent money laundering
- Safeguard and administer confiscated assets
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, promoting transparency and collaboration with international organizations.
Importance for Stakeholders
- Stay informed about these regulations
- Cooperate with relevant authorities
- Contribute to a safer and more secure financial environment in the Dominican Republic