Dominican Republic

New Documents

The Financial Action Task Force of Latin America published its first enhanced follow-up report on the anti-money laundering and counterterrorist financing regime of the Dominican Republic, which notes that the country’s compliance with one Financial Action Task Force Recommendation has been re-rated

The Attorney General’s Office in the Dominican Republic announced that it completed the biggest operation in the department’s history against members of a drug trafficking organization headed by César Emilio Peralta – known as “César El Abusador.”

News

Enforcement Actions

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Important Facts

  • The U.S. State Department labels the Dominican Republic as a major money laundering country. The jurisdiction is a major transit point for the shipment of illicit narcotics destined for the United States and Europe. Corruption within the government and the private sector, the presence of international illicit trafficking cartels, a large informal economy, and weak financial controls make the Dominican Republic vulnerable to money laundering threats. The State Department notes that financial institutions in the country engage in transactions involving international narcotics trafficking proceeds that include significant amounts of U.S. currency derived from illegal drug sales in the United States. The major sources of laundered proceeds stem from illicit trafficking activities, tax evasion, public corruption and fraudulent financial activities, particularly transactions with forged credit cards. Bulk cash smuggling by couriers and the use of wire transfer remittances are the primary methods for moving illicit funds from the United States into the Dominican Republic. Once the money enters the Dominican Republic, currency exchange houses, money remittance companies, real estate businesses, construction companies, and casinos facilitate the laundering of the illicit money. The Dominican Republic has comprehensive know-your-customer and suspicious transaction reporting (STR) regulations. However, the country has weaknesses regarding politically exposed persons, as well as no legislation providing safe harbor protection for STR filers. The State Department also notes that the country needs to strengthen regulation of casinos and non-bank actors. The Attorney General’s Office of the Dominican Republic reported no convictions for money laundering in 2020, but there are 50 active trials currently underway.
-Source: 2021 International Narcotics Control Strategy Report (INCSR)

Rankings

FATF i | 2013 Methodology

Technical Effectiveness
Compliant : 14 High : 0
Largely Compliant : 20 Substantial : 2
Partially Compliant : 6 Moderate : 8
Non-Compliant : 0 Low : 1

The Dominican Republic's technical compliance was re-rated in a Aug. 22, 2019 follow-up report

BASEL i

Rank : 77/141
Score : 5.05/10

TRANSPARENCY INTERNATIONAL i

Rank : 137/180
Score : 28/100

Tax Justice Network i

Rank : 107/133
Score : 59/100