Financial Crime World

Dominican Republic Steps Up Efforts to Combat Money Laundering and Terrorism Financing

The government of the Dominican Republic has established a Committee against Money Laundering and Terrorism Financing to strengthen its fight against financial crimes. The committee is responsible for preventing, detecting, controlling, and combating money laundering and terrorist financing.

Key Authorities Involved

The following competent authorities are involved in this effort:

  • Public Ministry
  • Financial Analysis Unit (UAF)
  • National Directorate for Drug Control
  • Monetary Board
  • General Directorate of Internal Taxes
  • General Directorate of Customs
  • Directorate of Casinos and Gaming
  • Cooperative Development and Credit Institute
  • Superintendents of key industries such as:
    • Insurance
    • Banking
    • Securities
    • Pension funds
    • Private security

Role of the Financial Analysis Unit (UAF)

The UAF plays a crucial role in this effort. As an autonomous entity attached to the Ministry of Finance, the UAF is responsible for:

  • Analyzing and identifying financial transactions that may be linked to money laundering or terrorist financing
  • Submitting financial analysis reports to the Public Ministry regarding possible infractions

Obligations of Regulated Entities

Financial and non-financial regulated entities are required to:

  • Continuously evaluate and strengthen their compliance efforts against money laundering and terrorist financing activities
  • Develop a comprehensive compliance program that includes:
    • Risk assessment
    • Client due diligence
    • Continued monitoring
    • Transaction registries
    • Designation of a compliance officer

Regulated parties must also adopt a risk-based approach and develop policies and procedures that cover:

  • Evaluation of money laundering and terrorist financing risks
  • Capability to manage and mitigate risk
  • Client due diligence or enhanced due diligence
  • Continued monitoring
  • Maintenance of transaction registries
  • Reporting unusual transactions to the UAF

AML/CTF Reporting Obligations

Regulated entities have reporting obligations under the Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CTF) regulations. They must report Suspicious Operations to the UAF within five business days after the transaction occurred or was attempted.

Suspicious Operations are defined as:

  • Complex transactions
  • Unusual transactions
  • Significant transactions
  • Non-obvious transactions that may be linked to money laundering or terrorist financing

The UAF has published a guide for obligated subjects to help categorize operations that require closer examination and reporting of suspicious activities. Each regulatory sector also establishes assumptions indicative of characteristics of transactions or operations that can be considered suspicious.

Conclusion

By strengthening its AML/CTF regulations and enforcement, the Dominican Republic is sending a strong signal that it will not tolerate financial crimes on its territory. Regulated entities must take note of their obligations and work closely with authorities to prevent and detect money laundering and terrorist financing activities.