Financial Crime World

DOMINICAN REPUBLIC INTRODUCES NEW ANTI-MONEY LAUNDERING AND TERRORIST FINANCING ACT

Strengthening Financial Regulations in the Dominican Republic

Santo Domingo, Dominican Republic - In a bid to bring its legal framework in line with international standards and strengthen its financial regulations, the Dominican Republic has introduced a new Anti-Money Laundering and Terrorist Financing Act (Act 155-17).

The new law, which came into effect on June 1, 2017, overhauls the previous anti-money laundering legislation to provide a more comprehensive and contemporary framework for regulating money laundering and terrorist financing activities.

Key Provisions of the New Law

Enhancing Regulatory Oversight

  • The law mandates that various government agencies, including the Financial Analysis Unit and the Monetary Board, play a more active role in detecting and preventing money laundering activities.
  • Regulated parties will be required to conduct enhanced due diligence on clients and transactions, particularly those involving high-risk countries or individuals.

Increasing Transparency

  • The law requires regulated parties to maintain accurate records of transactions and to report suspicious activity to the Financial Analysis Unit.
  • Stricter penalties are introduced for non-compliance, including fines and even imprisonment in severe cases.

Impact on Regulated Parties

The new law is expected to have a significant impact on regulated parties, including banks, financial institutions, and other businesses that provide services related to money laundering and terrorist financing. These entities will be required to:

  • Develop and implement comprehensive compliance programs: Regulated parties must establish policies, procedures, and controls to prevent money laundering and terrorist financing.
  • Conduct regular training and monitoring: Regulated parties must ensure that their employees are trained on anti-money laundering regulations and that they regularly monitor transactions for suspicious activity.

By introducing these new regulations, the Dominican Republic aims to strengthen its financial system and prevent the misuse of the country’s financial institutions.