Financial Crime World

Title: Dominican Republic Strengthens Anti-Money Laundering Framework with New Legislation

Introduction

Money laundering poses a significant threat to the global financial system, enabling various illicit activities such as drug trafficking, terrorism, and financial fraud. To combat these crimes, jurisdictions with lenient regulations and oversight are often targeted. In response, the Dominican Republic has taken decisive steps to strengthen its anti-money laundering (AML) measures.

International Commitments

  • The Dominican Republic has ratified several key international treaties and conventions in its fight against financial crimes.
  • Noteworthy agreements include the Inter-American Convention Against Corruption (1996) and the United Nations Convention Against Transnational Organized Crime (2002).
  • In 2002, Law 72-02 was enacted to regulate areas covered by these conventions.

The Need for Updated Regulations

  • With the evolving nature of financial crimes, there was a need for updated regulations.
  • In 2012, the Dominican National Congress initiated the development of new legislation.

The New Anti-Money Laundering and Terrorist Financing Act 155-17

  • The New Law was implemented on June 1, 2017.
  • It aims to modernize and align the Dominican legal framework with contemporary international standards.

Objectives of the New Law

  • Promote transparency in economic transactions.
  • Regulate money laundering and terrorist financing effectively.
  • Facilitate cooperation with international organizations.
  • Protect the Dominican Republic from blacklisting by the Financial Action Task Force (FATF).

Role of the Financiero Analysis Unit (UAF) and National Anti-Money Laundering Committee

  • The UAF is the Dominican Republic’s primary AML regulator.
  • The National Anti-Money Laundering Committee coordinates policies for preventing, discovering, and repressing laundered assets.

Ongoing Commitment to Combating Money Laundering and Terrorism Financing

  • The Dominican Republic’s adoption of international conventions and the implementation of the New Anti-Money Laundering and Terrorist Financing Act align the country with global AML standards.
  • These regulations provide a level of assurance and security for investors, businesses, and individuals engaging in the Dominican Republic.

Key Points

  • Money laundering poses a significant threat to global financial systems.
  • The Dominican Republic has ratified several international treaties and conventions to combat financial crimes.
  • In 2017, the Dominican Republic implemented the New Anti-Money Laundering and Terrorist Financing Act 155-17.
  • The New Law aims to modernize and align the Dominican legal framework with international standards.
  • The Financiero Analysis Unit and National Anti-Money Laundering Committee play crucial roles in combating financial crimes.
  • The Dominican Republic’s ongoing commitment to combating money laundering and terrorism financing fosters transparency and collaboration with international organizations.