Financial Crime World

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Dominican Republic Strengthens Fight Against Money Laundering and Terrorist Financing

The Dominican Republic has made significant strides in implementing anti-money laundering (AML) and combating the financing of terrorism (CTF) regulations, according to a recent evaluation by international standards-setters. The country’s efforts have earned it a high rating, reflecting its commitment to preventing illicit financial flows and protecting the global financial system.

Compliance Rating

The Mutual Evaluation Report 2018, conducted by the Financial Action Task Force (FATF), assessed the Dominican Republic’s compliance with international AML/CTF standards. The report highlighted several areas of strength:

Areas of Strength

  • Customer Due Diligence and Record-Keeping (R.10 & R.11): The country has established robust requirements for financial institutions to verify customer identities and maintain accurate records.
  • Targeted Financial Sanctions Related to Terrorism and Terrorist Financing (R.6): The Dominican Republic has implemented effective measures to prevent the misuse of financial services for terrorist purposes.
  • Internal Controls and Foreign Branches and Subsidiaries (R.18): The country’s regulatory framework requires financial institutions to establish internal controls, including those related to foreign branches and subsidiaries.

Areas for Improvement

While the Dominican Republic has made significant progress in implementing AML/CTF regulations, there are areas where improvement is needed:

Areas of Weakness

  • National Cooperation and Coordination (R.2): The country’s authorities have not fully established a comprehensive framework for national cooperation and coordination.
  • Financial Institution Secrecy Laws (R.9): The Dominican Republic’s laws on financial institution secrecy need to be updated to ensure they align with international standards.
  • Cash Couriers (R.32): The country lacks specific regulations to prevent the misuse of cash couriers.

Commitment to Improvement

The Dominican Republic has demonstrated a strong commitment to improving its AML/CTF framework, and its efforts are recognized by the FATF. The country’s progress is a testament to its dedication to preventing illicit financial flows and promoting a safe and secure financial system.