Dominican Republic Embraces Risk-Based Approach to Compliance
The Financial Action Task Force (FATF) has commended the Dominican Republic for its efforts in implementing a risk-based approach to compliance with anti-money laundering and counter-terrorism financing regulations.
Assessing Risks and Applying a Tailored Approach
The FATF report highlights the country’s significant strides in assessing risks and applying a tailored approach to prevent illicit activities. The government has established a robust system for identifying and mitigating risks associated with money laundering and terrorist financing, including:
- Implementing measures such as customer due diligence, record keeping, and reporting of suspicious transactions
- Enhancing national cooperation and coordination among various agencies responsible for combating financial crimes
National Cooperation and Coordination
The country’s efforts to enhance national cooperation and coordination have led to a more effective exchange of information and intelligence, enabling authorities to tackle complex cases more effectively. This includes:
- Implementing regulations and supervision of financial institutions
- Establishing a robust system for reporting suspicious transactions
- Enhancing transparency and beneficial ownership of legal persons and arrangements
Money Laundering Offence and Confiscation Measures
The Dominican Republic has been recognized for its efforts to strengthen money laundering offences and confiscation measures, including:
- Providing adequate penalties and procedures to freeze and confiscate assets linked to illicit activities
- Implementing targeted financial sanctions related to terrorism and terrorist financing
Terrorist Financing Offences and Sanctions
The country’s efforts to combat terrorist financing have been praised by the FATF, with a focus on implementing targeted financial sanctions related to terrorism and terrorist financing. This has helped to prevent the flow of funds to terrorist organizations and individuals.
Correspondent Banking, Wire Transfers, and Customer Due Diligence
The report notes that the Dominican Republic has made significant progress in implementing measures to prevent money laundering and terrorist financing in correspondent banking, wire transfers, and customer due diligence. These efforts have been recognized as largely compliant with international standards.
Other Areas of Progress
In addition to the above areas, the FATF commended the country’s efforts in other areas, including:
- Enhancing cooperation with international partners to combat financial crimes
- Strengthening cooperation with international partners to combat terrorist financing and money laundering
Recommendations for Further Improvement
While the FATF acknowledged the Dominican Republic’s progress, it also identified areas where further improvement is needed, including:
- Enhancing powers of supervisors to effectively monitor and supervise financial institutions
- Improving regulation and supervision of designated non-financial businesses and professions (DNFBPs)
- Strengthening cooperation with international partners to combat terrorist financing and money laundering
Overall, the FATF’s report highlights the Dominican Republic’s commitment to implementing a risk-based approach to compliance with anti-money laundering and counter-terrorism financing regulations. While there is still room for improvement, the country’s efforts have been recognized as largely compliant with international standards.