Financial Crime Prevention Strategies in Dominican Republic Fall Short, Says New Report
The Dominican Republic’s efforts to combat financial crime have been found lacking in several key areas, according to a recent assessment by the Financial Action Task Force (FATF). While some progress has been made, significant improvements are needed to meet international standards.
Shortcomings in Risk Assessment and Mitigation
The report highlights concerns over the country’s ability to assess and mitigate risks associated with money laundering and terrorist financing. The Dominican Republic scored poorly on this front, indicating a need for improved risk-based approaches.
Key Areas of Concern:
- Customer Due Diligence: The country has been found lacking in implementing effective customer due diligence measures.
- Record-Keeping Practices: The report notes that the Dominican Republic’s record-keeping practices are inadequate.
- Correspondent Banking Relationships: Some financial institutions have used correspondent banking relationships to facilitate illicit transactions, raising concerns over the country’s oversight of these relationships.
Progress in Certain Areas
Despite the shortcomings, the report does note some progress made by the country:
Key Areas of Progress:
- Targeted Financial Sanctions: The Dominican Republic has implemented targeted financial sanctions related to terrorism and terrorist financing.
- Regulation and Supervision of Non-Profit Organizations: Efforts have been made to regulate and supervise non-profit organizations.
Recommendations for Improvement
The report’s findings have been welcomed by anti-money laundering experts, who emphasize the need for continued reform and improvement in the Dominican Republic’s financial crime prevention strategies. “This report provides a clear roadmap for the country to follow,” said one expert. “With commitment and resources, we believe that the Dominican Republic can make significant strides in combating financial crime.”
Country Scorecard
The report includes a comprehensive country scorecard, evaluating the Dominican Republic’s compliance with the FATF Recommendations.
Key Scores:
- R.1 - Assessing risk & applying risk-based approach: Partly compliant (PC)
- R.2 - National cooperation and coordination: Compliant (C)
- R.3 - Money laundering offence: Compliant (C)
- R.4 - Confiscation and provisional measures: Compliant (C)
- R.5 - Terrorist financing offence: Compliant (C)
The report’s recommendations are expected to be taken into account by the country’s authorities as they move forward with implementing new policies and regulations designed to prevent financial crime.
Other Key Scores:
- R.6 - Targeted financial sanctions related to terrorism & terrorist financing: Largely compliant (LC)
- R.7 - Targeted financial sanctions related to proliferation: Largely compliant (LC)
- R.8 - Non-profit organisations: Partly compliant (PC)
- R.9 - Financial institution secrecy laws: Compliant (C)
- R.10 - Customer due diligence: Largely compliant (LC)