Financial Crime World

DOMINICAN REPUBLIC TAKES STEPS TO ENHANCE FINANCIAL CRIME PREVENTION MEASURES

The Dominican Republic has taken a significant step towards strengthening its financial crime prevention measures by promulgating the new Anti-Money Laundering and Terrorist Financing Act 155-17. This law aims to bring the country’s legal framework in line with international standards, enhancing its ability to prevent and detect money laundering and terrorist financing activities.

Key Provisions of the New Law

  • Defines various terms such as “shell banks”, “correspondent bank”, “beneficial owner”, and “objective circumstances”, among others.
  • Broadens the definition of money laundering to include a wide range of infractions, including child pornography, tax evasion, and financial crimes.
  • Introduces limits on payments in cash for certain transactions, such as real estate purchases or stock sales, unless reliable proof of payment is provided.
  • Increases the cash transaction threshold triggering a registration and reporting obligation from USD 10,000 to USD 15,000.

Compliance Requirements

Regulated parties must:

  • Adopt a compliance program focused on risk-based approach, with policies and procedures aimed at evaluating and managing money laundering and terrorist financing risks.
  • Report unusual transactions to the Financial Analysis Unit and maintain transaction registries.
  • Evaluate and enhance their compliance efforts against money laundering and terrorist financing activities.

Benefits of the New Law

The enactment of this new law is expected to:

  • Help the Dominican Republic continue on a path of international cooperation, access to foreign credit and assistance by international organizations.
  • Enhance the country’s ability to prevent and detect financial crimes, promoting a more stable and transparent financial system.

Conclusion

The promulgation of the Anti-Money Laundering and Terrorist Financing Act 155-17 is a significant step towards strengthening financial crime prevention measures in the Dominican Republic. Regulated parties will need to evaluate and enhance their compliance efforts against money laundering and terrorist financing activities, promoting a more stable and transparent financial system.