Financial Crime World

Dominican Republic Takes Significant Steps Against Money Laundering

SANTO DOMINGO, Dominican Republic - In a bid to combat money laundering and terrorist financing effectively, the Dominican Republic has strengthened its anti-money laundering (AML) framework through significant updates to regulations. The country’s commitment to combating financial crimes is evident in its adoption of international conventions and the enactment of the New Anti-Money Laundering and Terrorist Financing Act.

The New Law, which came into effect on June 1, 2017, replaces the outdated Anti-Money Laundering Act 72-02 of 2002. This legislation aims to modernize and align the Dominican legal framework with contemporary international standards. The primary objectives of the New Law include:

  • Enhanced regulation
  • Increased transparency
  • Improved international collaboration

Protecting Against Blacklisting

One critical aspect of the New Law is its role in protecting the Dominican Republic from being placed on the Financial Action Task Force’s (FATF) ‘blacklist’. Such a designation could deter foreign investment and adversely affect the nation’s overall economy. The New Law provides mechanisms for imposing sanctions on individuals involved in illegal financial activities, thereby safeguarding both foreign and domestic investments and the welfare of Dominican citizens.

Regulators Play Key Role

In the Dominican Republic, the Financiero Analysis Unit (UAF) serves as the primary AML regulator. Its key responsibilities encompass:

  • Receiving reports of suspected financial activities
  • Requesting and analyzing reports
  • Disclosing cash transactions exceeding $10,000
  • Offering technical assistance to other competent authorities in AML matters

International Cooperation

The Dominican Republic’s commitment to combating money laundering is evident through its adoption of international conventions. The country has ratified key agreements such as:

  • The Inter-American Convention Against Corruption (1996)
  • The United Nations Convention Against Transnational Organized Crime (2002)

This demonstrates a strong willingness to collaborate with international organizations and participate in global efforts to combat financial crimes.

Investors and Businesses Take Note

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 Dominican Republic. The country’s commitment to combating money laundering is evident through its modernized legal framework and international cooperation efforts, making it an attractive destination for investment and business.