Dominican Republic Falls Short in Fight Against Money Laundering and Terrorist Financing

The Dominican Republic has failed to fully implement key measures to combat money laundering and terrorist financing, according to a new report. Despite making some progress, the country’s financial institutions remain vulnerable to fraudulent transactions due to inadequate supervision and regulation.

Key Areas of Concern

Lack of Effective Customer Due Diligence

• Financial institutions in the Dominican Republic lack effective customer due diligence practices, leaving them vulnerable to fraudulent transactions.
• This makes it difficult to identify and prevent money laundering and terrorist financing activities.

Inadequate Record Keeping Practices

• The country’s financial institutions also lack adequate record keeping practices, making it hard to trace transactions and detect suspicious activity.

Insufficient Laws Regarding Confiscation and Provisional Measures

• The Dominican Republic’s laws regarding the confiscation and provisional measures for money laundering and terrorist financing offenses remain inadequate.

Progress Made

Implementation of Targeted Financial Sanctions

• Despite challenges, the country has made progress in implementing targeted financial sanctions related to terrorism and terrorist financing.

Room for Improvement

Effective Utilization of Financial Intelligence Unit

• The Dominican Republic’s financial intelligence unit is not effectively utilizing its powers to gather and analyze information on suspicious transactions.

Lack of Resources and Training for Law Enforcement Agencies

• Law enforcement agencies in the country lack the necessary resources and training to investigate and prosecute money laundering and terrorist financing cases.

Call to Action

Experts are calling for increased efforts by the Dominican government to strengthen its anti-money laundering and counter-terrorism financing framework. This includes:

Improving Supervision and Regulation of Financial Institutions

• Strengthening supervision and regulation of financial institutions to prevent fraudulent transactions.

Enhancing Customer Due Diligence Practices

• Implementing effective customer due diligence practices to identify and prevent money laundering and terrorist financing activities.

Increasing Cooperation with International Partners

• Increasing cooperation with international partners to share information and best practices in combating money laundering and terrorist financing.

Full Report Available

The full report can be accessed here.