Financial Crime World

Combating Money Laundering and Terrorist Financing: The Dominican Republic’s Commitment

The Dominican Republic has been working diligently to combat money laundering and terrorist financing, taking significant steps to ensure the integrity of its financial system. This article highlights the country’s multi-faceted approach, ratifying international treaties, enacting new laws, and establishing regulatory bodies to oversee anti-money laundering (AML) measures.

International Commitments

In 2002, the Dominican Republic ratified:

  • The Inter-American Convention Against Corruption
  • The United Nations Convention Against Transnational Organized Crime

These conventions demonstrate the country’s commitment to combating financial crimes. The Dominican National Congress then enacted Law 72-02, regulating areas covered by these conventions.

New Anti-Money Laundering and Terrorist Financing Act (2017)

In response to changes in AML recommendations, the Dominican National Congress developed new legislation to strengthen the nation’s anti-money laundering framework. The New Anti-Money Laundering and Terrorist Financing Act (Law 155-17) was enacted on June 1, 2017.

Objectives of the New Law

The primary objectives of the new law include:

  • Enhanced regulation
  • Transparency
  • International collaboration

Regulatory Bodies

Key AML regulators in the Dominican Republic include:

  • Financiero Analysis Unit (UAF): responsible for receiving, requesting, analyzing, and disclosing reports of suspected financial activities and cash transactions exceeding $10,000.
  • National Anti-Money Laundering Committee: coordinates policies to prevent, discover, and repress laundered assets.
  • Central Bank of the Dominican Republic, Superintendence of Banks, National Drug Council, and Secretariat of Finance: other important regulators.

Benefits for Investors and Stakeholders

The Dominican Republic’s commitment to combating money laundering and terrorist financing:

  • Aligns with global AML standards
  • Bolsters transparency
  • Promotes collaboration with international organizations

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.