Financial Crime World

Emerging Risks in Financial Crime: The Dominican Republic’s Struggle

A New Set of Challenges for the Real Estate Market

Santo Domingo, Dominican Republic - The Caribbean nation’s real estate market is facing a new set of challenges as the government’s efforts to combat money laundering and terrorist financing take shape. Law 155-17, enacted in June 2017, has introduced stricter regulations aimed at preventing illicit activities in the sector.

Stricter Regulations on Real Estate Transactions

Under Law 155-17, real estate transactions must adhere to strict guidelines, including:

  • Capping the use of cash at one million pesos
  • Requiring the remaining funds to be obtained through bank loans or justified sources

While these regulations have forced construction companies and real estate developers to adapt, some are finding creative ways to circumvent the law.

Online Money Laundering Schemes Emerge

In an effort to evade detection, some unscrupulous operators have resorted to creating online platforms, known as money laundering blogs, that provide guidance on concealing the true origin of funds. These clandestine websites offer advice on how to utilize offshore companies and facilitate anonymous transactions.

The Internet as a Breeding Ground for Illicit Activities

“The internet has become a breeding ground for illicit activities,” warns Dr. Susan Espaillat, a respected expert in business law. “These online schemes are making it increasingly difficult for authorities to track and prevent money laundering.”

Law Enforcement Responds

The National Drug Control Directorate in the Dominican Republic has reported a significant increase in cybercrimes related to money laundering. Authorities have also made several high-profile arrests of individuals involved in offline and online money laundering schemes.

While the new legislation aims to combat financial crime, it also raises concerns about its impact on the informal real estate market and potential unintended consequences. As the situation continues to unfold, authorities must navigate these complex challenges to effectively address the issue of money laundering blogs and other emerging risks in financial crime.