Dominican Republic Takes Bold Steps Against Money Laundering and Terrorist Financing
Santo Domingo, Dominican Republic - The government of the Dominican Republic has made a significant move in its fight against financial crimes by introducing a new anti-money laundering and terrorist financing law. This legislation, known as the Anti-Money Laundering and Terrorist Financing Act 155-17, came into effect on June 1, 2017, and aims to bring the country’s legal framework in line with international standards.
Strengthening Anti-Money Laundering Regime
The new law makes it easier for authorities to detect and prevent money laundering activities by increasing transparency and cooperation with international organizations. This is a significant step towards promoting a safer financial environment and reducing the risk of financial crimes.
Key Provisions of the New Law
- Definitions: The new law defines key terms such as “shell banks”, “beneficial owner”, and “enhanced due diligence”, providing clarity on the obligations of financial institutions and non-financial entities.
- Broad Definition of Money Laundering: The law introduces a broader definition of money laundering, including activities related to child pornography, tax evasion, and counterfeiting.
- Risk-Based Approach: Regulated parties, including banks, insurance companies, and lawyers, will be required to adopt a risk-based approach to compliance, with policies and procedures in place to identify and mitigate potential risks.
Increased Penalties for Non-Compliance
The new law introduces more severe penalties for non-compliance, including fines and imprisonment for individuals who fail to meet their obligations. Regulated parties that engage in money laundering activities may face the revocation of their licenses or be subject to asset forfeiture.
International Cooperation
The Dominican Republic’s efforts to strengthen its anti-money laundering regime are aimed at promoting international cooperation and access to foreign credit and assistance from international organizations. The country has already taken steps to enhance its cooperation with neighboring countries and is committed to sharing information and best practices in the fight against financial crimes.
As the Dominican Republic continues to implement the new law, regulated parties will need to enhance their compliance efforts to avoid penalties and reputational damage. With increased penalties for non-compliance, it’s essential for businesses and individuals to take proactive steps to ensure they are meeting their obligations under the new law.