Financial Crime World

Financial Crime Reporting Requirements in Dominican Republic Face Scrutiny

The Financial Action Task Force (FATF) has issued its mutual evaluation report on the Dominican Republic, highlighting areas of compliance and improvement in the country’s efforts to combat financial crime.

A Mixed Picture Emerges

While the Dominican Republic has made progress in establishing a money laundering offence and confiscation measures, it falls short in several other areas. The report assesses the extent to which the country has implemented the technical requirements of the FATF Recommendations.

Areas Requiring Improvement

  • National Cooperation and Coordination: While national cooperation and coordination between agencies is deemed compliant, there is room for improvement in effectively targeting terrorist financing and proliferation.
  • Regulation and Supervision of Financial Institutions: The country requires improvement in its regulation and supervision of financial institutions, as well as its powers of supervisors.
  • Collaboration with Law Enforcement and Investigative Authorities: The report highlights that while the country has established a financial intelligence unit, it needs to enhance its collaboration with law enforcement and investigative authorities to address threats more effectively.
  • Statistics Gathering and Guidance Feedback Mechanisms: Improvements are needed in statistics gathering and guidance feedback mechanisms.

Areas Demonstrating Compliant Practices

  • Customer Due Diligence: The country has demonstrated largely compliant practices in customer due diligence.
  • Record-Keeping: Record-keeping practices have also shown compliance.
  • Correspondent Banking: Correspondent banking practices have been deemed largely compliant.

Key Takeaways

The Dominican Republic’s mutual evaluation report serves as a wake-up call for authorities to address these gaps and enhance their efforts to prevent and combat financial crime. As the country continues to work towards improving its compliance with FATF Recommendations, it is essential that stakeholders collaborate to achieve this goal.

Areas Requiring Further Improvement

  • Regulation of Non-Profit Organisations: The regulation of non-profit organisations requires further improvement.
  • DNFBPs Regulation: DNFBPs (Designated Non-Financial Businesses and Professions) require more stringent regulations.