Financial Crime World

Dominican Republic Steps Up Efforts Against Money Laundering with New Regulations

The Dominican Republic has made significant strides in combating money laundering and terrorist financing by adopting stringent anti-money laundering (AML) regulations, aimed at protecting its financial system from illicit activities. The country’s efforts have earned international recognition, aligning it with global standards and bolstering transparency.

A Comprehensive AML Framework

In 1996, the Inter-American Convention Against Corruption and the United Nations Convention Against Transnational Organized Crime were ratified by the Dominican Republic, setting the stage for a comprehensive AML framework. In 2002, Congress enacted Law 72-02 to regulate areas covered by these conventions, marking a significant milestone in the country’s commitment to combating financial crimes.

New Anti-Money Laundering and Terrorist Financing Act

In response to changes in AML recommendations in 2012, the Dominican National Congress initiated the development of new legislation to strengthen the nation’s anti-money laundering framework. The New Anti-Money Laundering and Terrorist Financing Act (Act 155-17) was finally implemented on June 1, 2017, replacing the outdated Anti-Money Laundering Act 72-02.

Key Objectives

The new law aims to:

  • Enhance regulation of money laundering and terrorist financing
  • Promote transparency and sharing information about economic agents, their activities, and beneficial owners in accordance with international standards
  • Facilitate international cooperation, access to foreign financing, and participation in global efforts to combat financial crimes

Protecting the Dominican Republic

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

AML Regulators

The following institutions serve as AML regulators in the Dominican Republic:

  • 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 provide a level of assurance and security for investors, businesses, and individuals considering involvement in the country, contributing to a safer and more secure financial environment in the Dominican Republic.