Dominican Republic Strengthens Regulatory Framework Against Financial Crimes

Santo Domingo, Dominican Republic

The Dominican Republic has made significant strides in recent years to combat financial crimes and strengthen its regulatory framework. In an effort to enhance transparency and accountability, the country has been working closely with international organizations such as the Financial Action Task Force (FATF).

Improvements and Challenges

According to a latest report by the FATF, the Dominican Republic has shown improvements in several areas, including:

• Risk Assessment: The country has achieved “largely compliant” ratings in assessing risk and applying a risk-based approach.
• National Cooperation and Coordination: The Dominican Republic has improved its national cooperation and coordination efforts to combat financial crimes.
• Targeted Financial Sanctions: The country has implemented targeted financial sanctions related to terrorism and terrorist financing.

However, there are still some areas where the Dominican Republic needs to improve. For instance:

• Confiscation and Provisional Measures: The country is rated “partially compliant” in confiscating assets related to financial crimes.
• Customer Due Diligence: Financial institutions must conduct adequate customer due diligence to prevent money laundering and terrorist financing.
• Reporting of Suspicious Transactions: The country must improve its reporting mechanisms for suspicious transactions.
• Transparency and Beneficial Ownership: The Dominican Republic needs to strengthen its laws and procedures for transparency and beneficial ownership of legal persons and arrangements.

Key Areas for Improvement

According to the FATF report, some key areas where the Dominican Republic needs to focus on include:

• Confiscation and provisional measures
• Customer due diligence
• Reporting of suspicious transactions
• Transparency and beneficial ownership of legal persons and arrangements

International Cooperation

The FATF report highlights the importance of international cooperation in combating financial crimes. The Dominican Republic has been working closely with other countries and international organizations such as:

• United States
• Canada
• European Union
• Other countries to enhance its regulatory framework and prevent financial crimes.

Conclusion

The Dominican Republic’s efforts to strengthen its regulatory framework are a crucial step towards preventing financial crimes and ensuring that the country meets international standards. However, there is still more work to be done to ensure that the Dominican Republic remains a secure and stable destination for foreign investment and tourism.