Dominican Republic Introduces Alternative Mechanisms for Conflict Resolution in White-Collar Crimes
The Dominican Republic has introduced a new legislation aimed at streamlining the criminal justice system and promoting transparency by introducing alternative mechanisms for conflict resolution in white-collar crimes. This move is expected to reduce the burden on the country’s criminal justice system and promote greater transparency and accountability in corporate dealings.
Non-Prosecution Agreements
The new legislation allows for non-prosecution agreements to be reached during the investigation process or subsequently ratified by a judge. This means that companies accused of wrongdoing can negotiate penalties with prosecutors, reducing the risk of lengthy and costly trials.
Benefits
- Allows complex cases involving corporate fraud and bribery to benefit from these agreements
- Requires beneficiary to collaborate with the investigation
- Reduces the risk of lengthy and costly trials
Plea Agreements
The country’s Criminal Procedure Code allows for plea agreements to be reached between the prosecution and the accused. The code sets out the circumstances in which an agreement can be reached and the minimum and maximum amounts authorized for negotiation of penalties.
Regulation
- Sets out circumstances in which an agreement can be reached
- Authorizes minimum and maximum amounts for negotiation of penalties
Corporate Fraud
The legislation regulates penal crimes related to corporate fraud, including those committed by public companies subject to the regulation of the Superintendence of Securities (SV). These crimes can be sanctioned with up to five years imprisonment and fines ranging from 10 to 100 times the minimum wage.
Penalties
- Up to five years imprisonment
- Fines ranging from 10 to 100 times the minimum wage
Private Companies
In private companies, corporate crimes include infractions such as:
- Distribution of dividends without accumulated benefits
- Presentation of financial statements with false information
- Obstruction of internal management investigations
Penalties for Private Companies
- Less severe than those for public companies
Bribery
The Dominican Criminal Code includes the crime of bribery, which applies exclusively to public officials or employees who receive gifts to perform acts within their functions. A new law on bribery in commerce and investment has been introduced, which sanctions both the natural person or private entity that offers bribes and the public official who requests or accepts them.
Anti-Bribery Regulation
- Does not require companies to maintain a compliance program specifically to prevent national or transnational bribery
- Obligates companies to identify politically exposed persons (PEP) and report suspicious transactions under the Anti-Money Laundering Act
These new measures are expected to reduce the burden on the country’s criminal justice system and promote greater transparency and accountability in corporate dealings.