New Money Laundering Law in Dominican Republic: Impact on Real Estate Market

Implementation of Law 155-17 and its consequences

Overview of Money Laundering and Law 155-17

• Title: New Money Laundering Law in Dominican Republic
• Implemented on: June 1, 2017
• Expert: Dr. Susan Espaillat
• Money laundering: concealing the origins of illicit funds to make them appear legal

Real Estate Sector and Law 155-17

• Caps cash use for real estate purchases and transfers at one million pesos
• Remaining funds to be acquired through bank loans or justified sources

Prohibited Payment Methods

• Construction companies, real estate firms, and sellers
• Prohibition of setting/receiving payments in domestic currency or precious metals using cash

Complexity of Real Estate Transactions

• Sellers required to provide a clear explanation of payment methods

Penalties for Undeclared Cash Transactions

• Fines ranging from 300,000 to 4 million pesos
• Imprisonment for up to 40 years

Insights from Dr. Susan Espaillat

• Lawyer with a Master’s Degree in Business Law and author of “Criminal Responsibility of Commercial Companies”
• Contact: susan.espaillat@gmail.com

Conclusion

The Dominican Republic’s new anti-money laundering and terrorist financing law, Law 155-17, introduces stringent measures in the real estate sector, making transactions more complex. Failure to comply with the law could result in severe penalties.

References

• Espaillat, Susan. “Criminal Responsibility of Commercial Companies.”
• Dr. Susan Espaillat’s Email