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.”

Enforcement Actions

0 Items Found


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 and terrorist financing. 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. Car dealerships, the precious metals sector, casinos, tourism agencies, real estate companies and construction companies also contribute to money laundering activities. 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. The Dominican Republic has comprehensive know-your-customer and suspicious transaction reporting (STR) regulations. However, the definition and procedural requirements regarding politically exposed persons are not consistent across sectors. Additionally, the country has no legislation providing safe harbor protection for STR filers and does not criminalize tipping off. In July 2019, the country's financial intelligence unit was readmitted to the Egmont Group as a result of a multi-year effort to bring AML procedures and practices into line with international standards. The Attorney General’s Office of the Dominican Republic reports there were seven convictions in calendar year 2019 for money laundering, as well as 40 active trials currently underway.
-Source: 2020 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