Financial Crime World

Financial Institution Due Diligence in the Dominican Republic: A Growing Market with Promising Sub-Sectors

Overview

The Dominican Republic’s financial institution sector is undergoing significant transformation, driven by modern regulations and digital technologies. With 49 entities carrying out financial intermediation operations, the market offers numerous opportunities for investment.

Key Developments

  • The country has relaxed banking services, granting equal treatment to foreign financial intermediation entities.
  • The Dominican Monetary Board has approved the regulation of banking subagents, allowing entities to provide certain banking operations and services in rural areas.
  • Over 68 active fintech companies offer digitalization services such as digital payment services, mobile wallets, and credit evaluation.

Fintech Sector Growth

The fintech sector is a key area of growth, driven by the government’s National Strategy for Financial Inclusion (ENIF). The ENIF aims to promote financial inclusion through the coordination of financial policy actions. The first stage of the strategy focuses on promoting financial inclusion in rural areas and increasing access to relevant and quality financial products and services.

Sub-Sectors

  • Credit corporations
  • Fintech
  • Payment facilitators
  • Contactless transactions
  • Online banking

Regulatory Environment

Regulation standards in the Dominican Republic follow modern international trends, adhering to principles established in Basel Agreements I and II. Strict compliance is required.

Quotes from Industry Experts

“The Dominican Republic’s banking sector is one of the largest contributors to the country’s GDP,” said Francesca Fermín, Commercial Specialist at the US Department of Commerce. “Digitalization offers banks numerous opportunities to increase financial inclusion by providing customers with better access to financial services.”

Resources for Investors and Businesses

For investors and businesses looking to enter the Dominican Republic’s financial institution sector, there are numerous resources available, including:

  • Superintendency of Banks
  • Superintendency of the Stock Market
  • Dominican Association of FinTech Companies (Adofintech)
  • PH Law – Law Firm for legal advice and assistance