Dominican Republic Falls Short on CFT Regulations, According to Latest Report
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The Financial Action Task Force (FATF) has released a recent report highlighting the Dominican Republic’s partial compliance with the technical requirements for Combating the Financing of Terrorism (CFT). The country’s rating has dropped from largely compliant (LC) to partially compliant (PC).
Key Findings
- The Dominican Republic failed to meet FATF standards in several areas, including:
- Confiscation and provisional measures
- Terrorist financing offence
- Non-profit organisations
- However, the country made progress in implementing measures such as:
- Customer due diligence
- Record keeping
- Financial intelligence units
Shortcomings
- The report notes that the Dominican Republic has not fully implemented measures related to:
- Higher-risk countries
- Reporting of suspicious transactions
- Transparency and beneficial ownership of legal persons and arrangements
- These shortcomings have led to a rating of non-compliant (NC) in these areas.
Praise for Implementation Efforts
- The report praises the country’s efforts in implementing measures such as:
- Money laundering offence
- Targeted financial sanctions related to terrorism and terrorist financing
- International instruments
Next Steps
- The Dominican Republic has been tasked with addressing the identified weaknesses and improving its CFT regulations.
- The country must submit a follow-up report by [date] detailing the steps it will take to address these issues.
Consequences of Non-Compliance
- Experts warn that failure to comply with FATF standards can have serious consequences for the country’s financial system and reputation.
- The Dominican Republic has been urged to prioritize the implementation of these measures to prevent the misuse of its financial system for terrorist financing and money laundering activities.
Accessing the Full Report
- The full report is available on the FATF website.