Financial Crime World

DOMINICAN REPUBLIC’S MONEY LAUNDERING TECHNIQUES EXPOSED IN SHOCKING MUTUAL EVALUATION REPORT

FATF Report Reveals Widespread Weaknesses in Dominican Republic’s Anti-Money Laundering Efforts

The Financial Action Task Force (FATF) has published a scathing mutual evaluation report on the Dominican Republic’s efforts to combat money laundering, exposing widespread weaknesses in its laws and practices. The report highlights significant shortcomings in various key areas, leaving the country vulnerable to money laundering and terrorist financing.

Assessment of Risk and Application of a Risk-Based Approach (R.1)

  • The Dominican Republic was rated “largely compliant” for assessing risk and applying a risk-based approach.
  • However, more needs to be done to ensure effective implementation of this approach.

National Cooperation and Coordination (R.2), Customer Due Diligence (R.10), Record Keeping (R.11), and Politically Exposed Persons (R.12)

  • The Dominican Republic was rated “partially compliant” or “non-compliant” in these areas, indicating significant weaknesses.
  • These issues highlight the need for improved national cooperation and coordination, as well as more effective customer due diligence and record keeping practices.

Comprehensive Framework for Combating Money Laundering and Terrorist Financing

The FATF report reveals that the Dominican Republic has failed to establish a comprehensive framework for combating money laundering and terrorist financing. This lack of a clear framework makes it challenging to effectively identify and track suspicious transactions.

Positive Ratings in Certain Areas

  • The Dominican Republic was rated “largely compliant” for regulation and supervision of financial institutions (R.26).
  • However, these positive ratings are overshadowed by the overall poor performance of the country in combating money laundering and terrorist financing.

Recommendations and Next Steps

The FATF recommends that the Dominican Republic take immediate action to address these weaknesses and improve its rating. The report serves as a wake-up call for the country to strengthen its laws and practices to prevent money laundering and terrorist financing.

Government Response

In response to the report, the Dominican Republic’s government has vowed to take immediate action to address the weaknesses identified by the FATF. However, only time will tell whether the country can effectively implement the necessary reforms to improve its rating and prevent money laundering and terrorist financing.

The FATF report highlights the need for the Dominican Republic to take a more proactive approach to combating money laundering and terrorist financing. The country must prioritize these efforts to protect its financial system and maintain international cooperation.