Financial Crime World

Dominican Republic Takes Steps to Combat Money Laundering and Terrorist Financing

The Dominican Republic has taken significant steps to strengthen its anti-money laundering (AML) framework, demonstrating its commitment to international cooperation and adherence to global standards.

International Cooperation and Adherence to Global Standards

The country has ratified key treaties and conventions to combat money laundering and terrorist financing. These include the Inter-American Convention Against Corruption (1996) and the United Nations Convention Against Transnational Organized Crime (2002). The Dominican Republic’s Congress enacted Law 72-02 in 2002 to regulate areas covered by these conventions.

Update to Anti-Money Laundering Measures

In 2012, international guidelines were updated, and the Dominican National Congress developed new legislation to strengthen the nation’s anti-money laundering framework. The New Anti-Money Laundering and Terrorist Financing Act (155-17) was implemented on June 1, 2017.

Key Objectives of the New Law

The law aims to:

  • Enhance regulation and transparency
  • Promote international collaboration and information sharing
  • Facilitate access to foreign financing and participation in global efforts to combat financial crimes

Impact on Foreign Investment

The new law plays a critical role in preventing the Dominican Republic from being placed on the Financial Action Task Force’s (FATF) ‘blacklist’, which could deter foreign investment and have a negative impact on the country’s economy.

Regulators

Key regulators in the Dominican Republic include:

  • Financiero Analysis Unit (UAF)
  • National Anti-Money Laundering Committee
  • Custody and Management of Seized Assets Office
  • Central Bank of the Dominican Republic
  • Superintendence of Banks
  • National Drug Council
  • Secretariat of Finance

Conclusion

The Dominican Republic’s commitment to combating money laundering and terrorist financing is evident through its adoption of international conventions and the enactment of the New Anti-Money Laundering and Terrorist Financing Act. These efforts align the country with global AML standards, promote transparency, and facilitate collaboration with international organizations.

For investors, businesses, and individuals considering involvement in the Dominican Republic, these AML regulations provide a level of assurance and security. By staying updated with these regulations and cooperating with relevant authorities, stakeholders can contribute to a safer and more secure financial environment in the country.