- Caribbean Financial Action Task Force

Transcription

Post-Plenary-Final
CARIBBEAN FINANCIAL
ACTION TASK FORCE
Eleventh Follow-Up
Report
DOMINICAN REPUBLIC
May 29, 2014
© 2014 CFATF. All rights reserved.
No reproduction or translation of this publication may be made without prior written permission. Requests
for permission to further disseminate reproduce or translate all or part of this publication should be
obtained from the CFATF Secretariat at [email protected]
1
Post-Plenary-Final
I.
Introduction.
1. This document summarises the analysis done by the CFATF Secretariat with regard to the
progress made as informed by Dominican Republic, to overcome the deficiencies identified in the
Mutual Evaluation Report (MER) adopted in October, 2006. It is based on the progress matrix
received on the 27th March, 2014. Dominican Republic continues in intensified follow up
process. It presented the Tenth Follow-up Report at the November 2013 Plenary, which decided
that they would report to the May 2014 Plenary once again.
2. Fourteen (14) of the sixteen (16) FATF Core and Key Recommendations were rated NC or PC
and two (2) Recommendations were rated as LC, as shown in the following table
Rec.
Rating
1
3
4
5
10
13
23
26
35
36
40
I
II
III
IV
V
PC
PC
LC
PC
PC
PC
PC
PC
PC
PC
LC
NC
NC
NC
NC
NC
3. In total the country’s ratings were PC or NC in thirty-seven (37) of the FATF Recommendations.
Partially Compliant (PC)
1. Money laundering offence: Penalization
3. Confiscation and provisional measures
5. Customer due diligence
6. Politically exposed persons
7. Correspondent banking
10. Record keeping
11. Unusual transactions
13. Suspicious transaction reporting
14. Protection and no tipping-off
15. Internal controls, compliance and audit
17. Sanctions
18. Shell banks
19. Other forms of reporting
21. Special attention for higher risk countries
Non-Compliant (NC)
9. Third parties and introducers
12. DNFBPs – R.5, 6, 8-11
16. DNFBPs – R.13-15 & 21
20. Other NFBP & secure transaction techniques
24. DNFBPs regulation, supervision and monitoring
32. Statistics
34. Legal arrangements-beneficial owners
SR.I Implement UN instruments
SR.II Criminalise terrorist financing
SR.III Freeze and confiscate terrorist assets
SR.IV Suspicious transaction reporting
SR.V International Cooperation
SR.VIII Non-profit organisations
Not Assessed:
SR IX – Cross border declaration and disclosure
22. Foreign branches & subsidiaries
23. Regulation, supervision and monitoring
25. Guidelines and feedback
26. The FIU
28. Powers of competent authorities
29. Supervisors
30. Resources, integrity and training
33. Legal persons-beneficial owners
35. Conventions
36. Mutual legal assistance (MLA)
37. Dual criminality
38. MLA on confiscation and freezing
SR. VII Wire transfer rules
4. The following information is intended to provide an idea of the size, internationalization and level
of risk of the major financial sectors.
2
Dominican Republic, 11h Follow-Up Report, May 2014
I. Size and international links of the financial sector
Banks1
Other credit
institutions 2
Stock Market 3
Insurers
TOTAL
17
49
29
33
128
356,584,150.16
870,100,582.55
27,269,509,167.73
Number of
Institutions
Total #
Assets
US$
21,996,425,069.23
4,046,399,365.79
Total: US$
13,53,216,679.18
701,911,914.09
24,059,091.01
14,261,187,684.28
141,768,186.61
0.00
Not Available
141,768,186.61
1.05
0.00
0.00
2,169,492,397.02
237,631,073.28
152,923,220.22
260,209,048.86
2,820,255,739.37
403,207,066.34
38,062,748.09
94,451,226.24
75,352,001.61
611,073,042.28
18.59
16.02
61.76
28.96
21.67
6
5
10
21
Deposits
Non resident
% de Non-residents
Total Capital: US$
Foreign
Capital
International
% Foreign Capital:
#Subsidiaries abroad
(amount)
Source: Done by the Analysis Dept. of the FIU with information obtained from the WEB pages of the Superintendence of Banks (SIB),) and the Insurance
Superintendence respectively; with information provided by telephone, by technicians of the related areas related for the type of information requested. The
information from the Securities Superintendence (SIV) were done and sent by said entity.
1/ Other financial institutions, include Savings and Loans banks, Savings and Loans Association, Credit Corporations and the National Housing Bank (BNV).
A) The referenced periods for the date and rates of exchange used:
1)
Statistics from the Superintendence of Banks "are for the month of February 2014, U.S. dollar conversion. The rate of Exchange used (Sale) from the
Central Bank equivalent to RD$ 43.23 per USD 28 February 2014.
2)
Statistics from the Insurance Superintendence July-September 2013 (3rd Q) rate of exchange used from the Central Bank (Sale) equivalent RD$42.53 per
USD to 30th September 2013. Information on total deposits is awaiting validation as they can be modified, same correspond to the 3 rd Q of 2013: the information
regarding nonresident deposit is being collated. .
3)
Information from the Securities Exchange to the 31 December 2013. The rate of Exchange published by the Dom Rep Central Bank to close of business
31/12/2013 equivalent to RD$42.6723 per USD $1.
B) Procedures for the calculation of the percentages:
1)
Percentage of Non-Resident Deposits, was calculated on the basis of the total deposit in foreign institutions (6) with regard to the total of deposits in each
type of entity.
2)
Percentage of Foreign Capital, was obtained through the relationship between the total capital of each type of entity of their respective sectors and the
amount of capital coming from outside of each type of entity.
3)
Percentage of Total Foreign Capital, was obtained from the relationship of the total capital from all sectors with respect to the total of the foreign capital
from the organizations in each sector.
2/ The information from the Securities superintendence is being elaborated.
N/A: Means “Not Applicable”
ND: Means “Not Available”
3
II. Scope of Report
5. This report will focus on all the recommendations whose level of compliance remains Partially
Compliant (PC) or Non-Compliant (NC) according to the MER and which are still have not been
fully remedied.
6. That is, it will focus on the following Recommendations: Key Recommendations 5, 10, 13, SR. II
and IV; Core Recommendations 23, 26 and SR. III. Likewise, the following Recommendations
which were initially rated as PC will be assessed: 6, 7, 11, 14, 15, 17, 18, 21, 22, 25, 29, 30, 33,
and SR. VII and Recommendations 9, 12, 16, 20, 24, 32 and SR. VIII1 initially rated as NC.
III. Summary of the progress made by Dominican Republic since the last Follow-up Report.
7. Dominican Republic formulated a draft reform to the Act 72-02 Anti Money Laundering from the
Illicit Traffic of Drugs and Controlled Substances and other Violations. These reforms are in the
process of approval by the National Congress.
8. Training of Reporting Entities with the focus on Due Diligence measures to identify the
beneficial owner and the obligation of having the approval of Board of Directors to enter into
contracts with PEPs was delivered. Additionally 834 persons have been trained in the DNFBP
sector on ML/FT prevention during the period of May 2013 to March 2014.
9. The Financial Analysis Unit (UAF its acronym in Spanish) received SOR from Companies in the
Financial and Currency Exchange System and DNFPB and RTE from the DNFPB sector.
Likewise statistical information on cases of money laundering and seizures were generated and
they continue to strengthen the national inter-institutional cooperation with the issuance of reports
to other entities.
10. Dominican Republic also presented progress in Recommendation 31 (originally rated as LC) on
the strengthening of national inter-agency cooperation ties among the investigative agencies as it
relates to ML/FT, exchange of information through the sending of reports and the feedback
provided.
11. Likewise the progress in Recommendation 38 is highlighted. In this regard, the country increased
the volume of confiscation of goods and its destination, during the year 2013 according to the
statistics provided.
Outstanding Key Recommendations:
Recommendation 5
12. Based on Article 19 of the Monetary and Financial Code (Act 183-02 of the National Congress),
it was clarified that "the Superintendency of Banks has internal regulatory authority of a self1
Key Recommendation 1 and Core Recommendation 3, 35, 36 and SR.I and V will be excluded from this
report as they were corrected, as explained in the first, second and sixth Follow-up Reports, as appropriate.
Neither will Recommendations 19, 28, 37, 38 and 34 be evaluated, as the weaknesses identified by the
evaluator were corrected, according to different Follow-up Reports. As SR.IV was rated as NC in the MER, it
was evaluated on the basis of the information submitted for previous reports since there were no updates for
this report.
4
organizing nature, with the approval of the Monetary Board, as well as subordinated regulatory
authority to develop, through Instructions, as established in the Regulations relating to matters
within its scope". This power is the basis for the issuance of the Guidelines for the Prevention of
Illicit Activities known as Money-Laundering and the Financing of Terrorism for the Financial
Intermediation and Currency Exchange Companies and Instructions "Know Your Client". Each of
the referenced instruments, contain mandatory compliance regulations and sanctions for breach
committed by the Reporting Entities (Section III on Administrative Penalties and Section V on
Sanctions respectively). Therefore, the level of obligation of the aforementioned Guidelines and
Instructions is considered to be clarified.
13. As indicated in the 7th. Follow-up Report, Resolution R-CNV-2012-01-MV established
provisions for knowledge your client and the beneficial owner, establishing the minimum amount
of information that should be required on the client, emphasizing the obligation to verify or check
the data supplied by this person, (which must be in the client file), identify the beneficial owner
and take reasonable steps to learn the ownership and control structure of the client, obtain
information about the purpose and nature of the business relationship. These actions allow the
indicated shortcomings to be considered as remedied.
14. In terms of the need to verify that the stock market properly documents the information about the
client's profile and cross check the information with that obtained by the Bank Investor; the
authorities indicated that the Securities Superintendency has strengthened its verification
procedures by tasks involving the cross checking of information provided by Securities Offices,
which are entities subject to their supervision. This only aspect pending for this point is the
presentation of evidence on the procedures applied by the SIV to carry out this task.
15. On the need for specific measures as it relates to AML/CFT for the stock market and insurance
market, as indicated in the 8th. Follow-up Report, resolution R-CNV-2012 14-MV establishes in
article 4 that securities transfers in the form of cash shall be registered in a centralized securities
deposit, and settlement schemes should be used that are approved by the SIV. Similarly, article 5
paragraph I obligates the reporting entities in the securities sector to have a documentary backup
that justifies each transfer of ownership, which should include information such as the name of
the company or name of the client, date and time in which the transaction was effected, type of
transaction, nominal value, negotiated price, customer identification, etc. This resolution was
issued taking into account the international guidelines and the FATF Recommendations, which
prevent the legal operations aimed at ownership of generic goods in which there are no activities,
actions, transactions or operations that justify the purchase of same. This aspect meets what was
observed for the stock market.
16. On the importance of the National Anti- Money Laundering Committee promoting and following
up on the work of the Securities and Insurance Superintendence, the authorities mentioned early
during the follow-up process, that the National Anti-Money Laundering Committee is the
planning body for preventive policies and detection of money laundering. Its dependents are the
Financial Analysis Unit and the National Office for Seized and Forfeited Goods, which are the
implementing arms of the plans and resolutions issued by the Committee, each in its area of
responsibility. The Committee has developed a sort of cluster of organisms, which in one way or
another have to do with preventive processes (Superintendencies), tax (Customs and Internal
Revenue), research (National Police, National Directorate of Drug Control, Security at the Ports
and Airports) and subjection to justice (Director of Public Prosecutions), as well as the Financial
Analysis Unit (UAF its acronym in Spanish), in order to generate the best possible cohesion and
thus achieve the developed actions that are concerted and effective. This aspect is largely
complied with, with the only suggestion being that Dominican Republic update the outreach
5
actions that the National Anti-Money Laundering Committee actually carries out with the
Superintendencies.
17. At the time of the Mutual Evaluation, the approval of the Anti-Terrorism Law was required. As
indicated in previous Follow-up Reports, Dominican Republic approved Law No. 267-08 on
Terrorism, which is in force. As for the specific aspect of passing the referenced law, this aspect
is cured.
18. As noted from the first follow-up reports, the Securities, Insurance and Pensions Superintendence
started on site and off site monitoring of the entities under its purview. Likewise, the
Superintendency of Banks jointly with the International Monetary Fund, developed the Onsite
and Offsite Matrices Analysis to strengthen the monitoring and measurement, analysis and
mitigation of risks. In the 9th. Follow-up Report it was indicated that despite Article 55 paragraph
d) of Law 72 - 02 which delegates the UAF to ensure the functioning of records and analysis of
information that the Reporting Entities provide, there is lack of clarity about their supervisory
powers. However Article 15 of Regulation 20-03 (Regulation of Law 72-02), states that the UAF
will coordinate with the competent authority, when it comes to inspection of the other reporting
entities.
19. As indicated in the preceding paragraph and from the observation related to the improvement of
the regulation and supervision of the insurance sector, the authorities reaffirmed for the present
report that the UAF created the Department of Supervision and Inspection of Reporting Entities
and that additionally there is the ML/FT Prevention Unit in the State regulator (Insurance
Superintendence). As a result, insurance companies have appointed Compliance Officers, they
also have Guidelines and Manuals for ML/FT Prevention. In addition, the UAF receives ROS and
provides permanent training to associations and insurance brokers. The authorities have also
updated that they have carried out training for all reporting entities, with the focus on the
Enhanced Due Diligence to identify the beneficial owner. This aspect is largely complied with, it
is only necessary that Dominican Republic present the Resolution for the Creation of the
Department of Supervision and Inspection of Reporting Entities and the Prevention Unit within
the Insurance Superintendence. It is also necessary to provide statistics and Manuals or Audit
Programs, on the inspections carried out by the UAF on the insurance sector in conjunction with
the Superintendency in charge.
20. As a result of the above indicated, this Recommendation presents substantial progress, awaiting
the authorities update of the information on the following items listed in the MER’s matrix: a)
Define a comprehensive and coordinated strategy for the implementation and monitoring of
Prevention Programs in the Credit Unions, under the Superintendency of Banks, the Financial
Analysis Unit and the Institute of Development and Credit Union. Likewise, that the Insurance
Superintendence do the right thing as it relates to the topic of AML/CFT with respect to Insurance
Cooperatives provided for in article 116 of the Regulations to the Law No. 127 on Cooperatives:
b) Include the origin of the funds to be invested as one of the elements for the characterization of
the client within the scope of "Standard for Securities Intermediaries which establishes provisions
for its functioning and the Accounting Manual and Account Plan”, in subsection "q" of article 4
(basic definitions) on Investor Profile, under the Securities Superintendence: c) Enact legislative,
regulatory and administrative measures specific to the matter of AML/CFT, subject to the
changes in the insurance market, similar to that regulated for the stock market as was developed
in paragraph 15 of this Report and d) Enact laws or special regulations on stock control,
correspondent banking and cross-border financial and insurance services.
Recommendation 10
6
21. As indicated in paragraph 290 of the MER, all Reporting Entities in Dominican Republic must
retain documents and registration data of customer for a predetermined minimum period, this
being 10 years, as provided in Article 41 paragraph 6 of Law 72-02. In addition, paragraph 292
noted the need to issue circulars or express instructions aimed at financial intermediation and
foreign exchange institutions, which guide in a specific manner the appropriate mechanisms to
archive and preserve with integrity and securely the information, either physically or
electronically.
22. In this regard, Dominican Republic has issued specific regulations to verify compliance with this
obligation, aimed at Intermediary Financial and Foreign Exchange Institutions (Guidelines for the
prevention of ML/FT and Instructive "Know Your Client") for the Securities sector (No R-CNV2012-01-MV and R-CNV-2012-14MV), Non-Financial Reporting Entities (Resolution 01-13). In
addition to the above, for this report, the authorities updated that based on Resolution 01-13 of the
National Anti-Money Laundering Committee, supervision and inspection has been carried out in
order to verify that the financial system entities comply with record-keeping, to which
Recommendation 10 makes reference. These actions represent significant progress in the
compliance of this deficiency, with only the broadening of the scope of the mechanisms applied
for filing, conservation, administration, integrity and security of the information during the 10
years being outstanding, which is already regulated in Law 72-02.
23. Full compliance with this Recommendation, must take into account that all core criteria for
Recommendation 10, should be referred to in law or regulation (except 10.1.1) a concept defined
in the Methodology for Evaluating Compliance with the FATF 40 + 9 Recommendations. Once
the obligation for all the reporting entities is expanded, this Recommendation can be considered
as complied with.
Recommendation 13
24. Dominican Republic updated the statistical information and reported that the UAF received 130
ROS from the Entities of the Financial and Currency Exchange System and 7 from the DNFBPs
Similarly it received 142 RTE from DNFBP during the period from January 1 to March 25, 2014.
It is suggested that for the next Follow-up Report, the statistics be presented per Sector based on
the division of financial and non-financial sector entities; specifying the number of ROS and RTE
received by each sector.
25. The authorities cited Art. 4 of Law 72-02, which states that persons whose property or assets are
linked to the violation of the law, provided that they cannot justify the illicit origin thereof, shall
be punished with the penalties established therein. The above makes reference to non-justified
heritage enrichment, which is linked to tax evasion.
26. This recommendation presents substantial progress, however there is the need that the obligation
to report a suspicious transaction for tax reasons in accordance with criterion 13.4 of the
Methodology for Evaluating Compliance with the FATF 40 + 9 Recommendations be explicitly
established.
Special Recommendation IV
27. The MER in paragraph No. 378 established the need to expressly regulate the obligation of
presenting RTS with a FT profile, circumstance that has been confirmed in previous Follow-up
Reports.
7
28. Dominican Republic approved Law No. 267-08 on Terrorism, which represents significant
progress in compliance with SR. IV. Additionally, "Guideline for the Prevention of Illicit
Activities known as Money-laundering and the Financing of Terrorism for Financial
Intermediation and Currency Exchange Entities" regulates the identification of suspicious ML/FT
activity. However, the only deficiency outstanding for compliance is the regulation of the
obligation to report transactions completed and attempted stemming from FT to the UAF.
Outstanding Key Recommendations
Recommendation 26
29. This Recommendation presents significant progress. The authorities clarified that the National
Anti- Money Laundering Committee, has the right to remove the UAF Director. It is necessary
that Dominican Republic clarifies the legal interpretation for the grounds for removal and
continue to follow-up on the adoption of the Reform to Law 72-02, which is currently in the
process and in which are included the grounds for removal of the UAF Director.
30. As for the sysSubjecttization of receiving information, including ROS, the authorities indicated
that for the 9th Follow-up Report, that they were working in conjunction with the Superintendency
of Banks, in the online reception of the reports of transactions directly in the UAF reports and that
a procedure for the future would be designed. Currently the UAF portal
(http://www.uaf.gob.do/formularios), allows the downloading of the RTE and ROS forms to be
used by commercial banks and currency exchange, real estate, casinos, credit unions, dealers,
notaries, non-profit organizations and insurance agents.
31. As noted in the previous Follow-up Report, it is necessary to follow up on the following actions:
a) Approval of the reforms to Law 72-02 in which the inclusion of the grounds for removal of the
Director of the UAF is planned. b) Present evidence to publicly release periodic reports that
include statistics, typologies and trends and c) Conclude the project of sysSubjecttization of the
receipt of information including the Suspicious Transactions Reports.
Progress in the outstanding Other Recommendations:
Recommendation 6
32. Dominican Republic regulated the obligation to obtain the approval of senior managers to
establish business relationships with PEPs and similar and cross-border correspondent relations,
aimed at institutions in the stock and securities market by Resolution R-CNV-2012-01-MV (Art.
20 paragraph b and Art 14 paragraph c). That resolution also includes the approval of the Policies,
Standards and Procedures Manual for the Prevention of ML/FT by the Board of Directors or
equivalent body to the Reporting Entities, which must then be immediately subjected to
consideration of the Securities Superintendence for the purposes of approval. The above and the
minimum aspects that must contained in the Manual is also regulated in the aforementioned
Resolution (Art. 27).
33. Although "Guidelines for the Prevention of ML/FT for Financial Intermediation and Currency
Exchange Institutions” and the "Know Your Client Instructions”, both from the Superintendence
of Banks and the SIPEN Resolution No. 265-06 on the Prevention of Money Laundering, from
the Pensions Superintendence contain regulations for ML/FT prevention and CDD, these are very
general, which makes it necessary to incorporate the approval of PEPs and cross-border
operations, similar to that regulated in the stock market. However, the authorities inform that the
8
UAF with the Reporting Entities, has developed a training plan focused on the application of the
DDC and approval by the Board of Directors to enter into contracts with PEPs.
34. For this Recommendation, still outstanding are: a) Regulate the approval of senior management
of Financial and Currency Exchange Institutions and insurance to enter into contracts with PEPs
and correspondent entities, and b) ensure that the policies governing these relationships, have the
approval of the senior management of each body. Therefore, it is imperative to remedy these two
observations, to have full compliance with this Recommendation.
Recommendation 9
35. For this Recommendation, the UAF is also carrying out the training plan aimed at the reporting
entities, with focus on the Customer Due Diligence, in order to identify the beneficial owner.
36. Still pending are: a) Oversee compliance of the previous regulation to ensure that third parties
apply CDD procedures and that they are capable of delivering information immediately when
required to do so, b) Enact specific regulations to delegate the CDD procedures to third parties in
the stock market, financial markets and insurance institutions as indicated in paragraph 272 of the
MER. As a result of these observations, the Recommendation remains with elements outstanding
to be fully compliant.
Recommendations 16 and 24
37. The UAF conducted training program aimed at Insurance, Liberal Professionals, Real Estate
Agents, Credit Unions, which were designated to a Compliance Officer and who find themselves
sending ROS and RTE as a result of the training provided, which is evidenced with the reception
of 7 ROS and 142 RTE during the period from 1 January to 25 March 2014.
38. Still pending approval is the modification to Law 72-02 to adequately regulate the DNFBP
(excluding from this category the Credit Unions) according to the operations carried out and
regulate other aspects, such as the amount limit for cash transactions and the establishment of a
legal instrument which will allow for a sanctioning regime.
Recommendation 32
39. Dominican Republic provided statistics on money-laundering crime cases in the judicial system.
The statistics provide information on the Province, City, Location and Date on which the events
occurred, Type of document with which the investigation began (Direct knowledge, Denunciation
or Complaint), infringement committed (Money Laundering, Sanctions and aggravating
circumstances, confiscation of property and its destination, recidivism from money laundering
from drug trafficking, Legal basis, and Stage of the process that the case is in (Research or
Preparatory stage, Preliminary hearing or Trial)
40. To date, an application called "Financial Investigation System" (SIF its acronym in Spanish) has
been created, which is in version 1.1. This application allows the systemization of massive
searches of files and information received from the Reporting Entities. It is expected that future
versions will enable the Reporting Entities, to send ROS and RTE. The authorities expanded the
UAF complements its information with the queries made in the database of the software called
"Justice System", indicating that when criminal news reaches the system through international
cooperation, the legal supports or evidence, are provided by Dominican Financial System. The
program also allows the financial system to send information about ROS and RTE to the UAF,
which once analyzed become financial reports to be sent to the Public Prosecutor in the cases
9
where necessary. The tool also supports the work of Inter-agency ML/FT Work Group, whose
purpose is to strengthen the inter-agency relations for cooperation in investigations. Therefore,
this recommendation is considered substantially complied.
Recommendations 7, 11, 12, 14, 15, 17, 18, 20, 21, 22, 23, 25, 29, 30, 33, SR. II, III, IV, VII and
VIII
41. For the present report no updates for these Recommendations were provided, so it was not
possible to evaluate them. It is suggested that Dominican Republic authorities, continue to
follow-up on the observations indicated in previous Follow-up Reports, to achieve the full
compliance of each Recommendation.
IV. Conclusion
42. According to the information submitted for this report, Dominican Republic has substantially
complied with Recommendation 32. Likewise, significant progress in Recommendations 5, 10,
13, 26, and SR.IV were presented; with the last two (2) missing, minor aspects to achieve
substantial compliance. Also, in previous Follow-up Reports it was indicated that the deficiencies
identified in Core Recommendation 1 and Key Recommendations 3, 35, 36, and SR.I and V rated
in the last MER as PC and NC were substantially rectified. Key Recommendations 4 and 40, were
rated as LC in the MER.
43. Despite the progress made, approval of the Reforms to the Law 72-02 and that the obligation to
report suspicious transactions for tax reasons and operations completed or attempted in terms of
FT be explicitly regulated, disseminate information about statistics, typologies and trends,
conclude the systematization project, adequately regulate the DNFPB and approve measures for
the treatment of PEP are indispensable.
44. Since Dominican Republic has implemented several actions, as required in the MER and the
Follow-up Reports, it is recommended to the Plenary that Dominican Republic be removed from
the Intensified Follow-up and moved to Regular Follow-up, with the particularity to report to the
Plenary in November 2014, taking into account the pending reforms to Law 72-02, and the
proximity of its Mutual Evaluation, scheduled for 2015.
May, 2014
CFATF Secretariat
______________________
10
Post-Plenary-Final
DOMINICAN REPUBLIC
Progress Matrix. 3rd Round of Mutual Evaluations.
The changes included since the last follow-up, are in bold
FATF Rec.
Rating
Legal Systems
1. ML
offense
PC
11
Factors underlying rating
 Financing of terrorism is not
criminalized.
 It was not considered that the
legislation covered all designated
categories of offence.
 The limit of three years for serious
offences is too high.
 Conspiracy to commit money
laundering is not included as a
contributory offence
Recommended Actions

Actions Informed by Country
The Palermo Convention should be 
The Palermo Convention was ratified on 26 November 2006 by Senate
ratified.
Resolution 355-06.

Criminalize the financing of terrorism 
The Law against Terrorism has been approved and enacted with
and make it subject to more than three years
No. 267-08, dated July 4, 2008. This law criminalizes the Financing of
imprisonment in order that it may fall within
Terrorism as a Serious Crime (Art. 25). The Lowest Penalty is
the definition of serious offence.
Greater than or equal to three (03) years, which falls into the category
of Serious Crime as stipulated in the Dominican Criminal Code. All

The legislation should cover all
Reporting entities have the responsibility to report operations that
designated categories of offence indicated
they believe are suspicious, already legally, as was stipulated before,
by the
but as a best practice. (Law 72-02 Art.41 paragraph 5)

FATF and reduce the limit of three years

Three (03) years is the minimum penalty specified for a serious offence
for serious offences.
by the Dominican Criminal Code. It would appear that the problem here
is not time, but criminalisation and the Anti-Money Laundering Act (Act
72-02), which criminalises all illegal acts suggested by the FATF 40
Recommendations.

Conspiracy to Launder is in fact criminalised; see Art. 4 of Act 72-02.
Note: it is not article 4 of 72-02, but (see Art. 21 letter b, of law 72-02),
since: the conspiracy exists when two or more persons arrange to carry out
a crime and resolve to carry them out .according to the legal
encyclopedia). In that sense the Law 72-02 article 21 letter b, sets out: the
fact of having committed the offence in association with two or more
persons (is an aggravating circumstance of the crime of money
laundering).

The Sworn Declaration of Assets and Illicit Gain Act is in the process
of being approved by the National Congress (approved by the Senate of
the Republic in June 2012, pending hearing in the Deputies Chamber)
This Act criminalizes the offense of illicit gain of public sector officials
with penalties ranging from five (5) years to ten (10) years imprisonment,
constituting an offense prior to money laundering.

As for the recommendation to cover all categories of crimes and
reduce the limit of three years for serious crimes. These two issues
were treated with by the draft amendment of Law 72-02 which is in
FATF Rec.
2 ML
offense–
mental
element
and
corporate
liability
3.
Confiscatio
n and
provisional
measures
Rating
LC
PC
Recommended Actions
 Although Article 4 of Act 72-02 
AML legislation
states that the element of intent in the
implemented
commission of an offence may be
inferred
from
the
objective
circumstances of the case, there was no
evidence that the intentional element in
money laundering has been used in the
courts.
should
be
further 
 Provisional measues seem to be It is recommended that measures tending to
used and implemented effectively, but prevent or avoid actions in which the persons
they are only for money laundering, involved knew or ought to have known that as
a result of their actions the ability of the
not for FT, which is not criminalised.
 There are no measures to prevent or authorities to recover the property subject to
avoid actions in which the persons confiscation is affected should be incorporated
involved knew or ought to have known in the law.
that as a result of such actions, the 
ability of the authorities to recover
property subject to confiscation would
be affected.







the process of being approved
The Anti-Money Laundering Unit of the Procuraduría General de la
República was created in 2006 as the juridical entity representing the
Ministerio Público in money laundering investigation and prosecution. So
far the Unit has obtained three (3) final verdicts in the courts. There have
been no prosecutions on grounds of intentionality, because of lack of
evidence. However, there are now cases that may reverse this trend with
charges and possible convictions on these grounds
From 2006 to September, 2011, the courts have issued about 20 rulings
having used Article 4 of Law 72-02.
The Civil Code (articles 1131, 1349 y 1350) allows the annulment of
agreements or contracts that are simulated with the purpose of disguising
goods. The Supreme Court has issued sentences in hundreds of cases
where annulment is requested.
No law can provide for violation through ignorance; at all events this
would not be legally valid. Act 72-02 applies to “whoever knowingly…”,
though it also requires all regulated entities to know their customers,
thereby providing a technicality to enable an investigator to build a case
on the assumption that they must know what their customers were doing
and where they got their money.
As regards criminalisation of Financing of Terrorism, we have already
mentioned that the Anti-Terrorist Bill was passed on its second reading.
This Bill criminalises terrorist financing as a serious offence.
Section 51 of the new Dominican Constitution, proclaimed on January
2010, establishes new measures to confiscate and allows the creation of a
system of administration and disposition of property seized and
abandoned in the criminal and forfeiture figure.
The commission that drafted the law about Forfeiture, headed by the
Dominican Attorney General is in the final stages of preparation for
submission to Congress.
The Dominican Republic and the OAS / CICAD, are in the
process of signing a Memorandum of Understanding to establish the
framework within which will be developed the project "seized
assets in Latin America " (Project BIDAL), whose purpose is to provide
technical
assistance to Government
in strengthening
and
improving the processes of identifying, locating, seizing, managing and
disposing of the assets and proceeds from drug trafficking and money
laundering, in order to improve the budgetary capacity and action of
the entities responsible for demand reduction and drug supply. The project
will include the establishment of standards of good governance
and administrative transparency in the management and administration of
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property in order to ensure maximum benefit and prevent slippage
in use and disposal.
 In the framework of the Bidal Project, the consultant shall deliver a
situational assessment in mid October, 2011.
 Bidal Project. The National Workshop on Asset Investigation and Seized
and Forfeited Asset Management was held at the end of March 2012. The
Consultant submitted the document containing the conclusions of the
situational assessment and the recommendations adopted on seized assets
in the Dominican Republic. The Inter-institutional Working Group of the
BIDAL Project (GTIPB) was established, whose objective is to develop
technical proposals (legislative or regulatory) that would strengthen and
improve processes for the identification, location, seizure, management
and disposal of assets and profits derived from drug trafficking and money
laundering offences. An agreed proposal in that regard is expected to be
achieved by the end of the year.
The Bill on Forfeiture was finalised and is in the process of being shared.
Law 72-02 allows the application of any preventive measure during the
investigation process of a Money Laundering offence, including blocking
the transfer of real estate in the Registry of Deeds (Article 9)
The Sworn Declaration of Assets and Illicit Gain Act is in the process of
being approved by the National Congress (approved by the Senate of the
Republic in June 2012, pending hearing in the Deputies Chamber.) This Law
seeks to institute an Automated and Uniformed National System for Sworn
Declarations of Assets for Public Officials consistent with constitutional
provisions (Article 146 of the Constitution) as it relates to the investigation
of administrative corruption. It criminalizes the offense of Illicit Gain by
officials in the public sector as a serious crime, with penalties ranging from
five (5) to ten (10) years), precedent to money laundering. In the sentence is
included, the confiscation of property not proven to be of legitimate origins,
and its confiscation in favour of the Dominican State, disqualification from
holding public office from two (2) to ten (10) years.
 Principle of Party Disposition
In the Dominican Republic, Tribunals decide matters in virtue
of elements, facts, evidence and claims made by parties,
Criminal Process regulations only mandate the designated judge
to know and issue a resolution regarding those specific matters
that were presented before him and were requested with formal
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conclusions.
Art. 336 of the Criminal Procedures Code, establishes the
relationship of the Public Prosecutor’s Office and the final
sentence issued by the judge.
Sentence cannot take as proven fact or circumstances other that
those described in the accusation and where applicable, it the
extension of the accusation, unless in favour of the prosecuted.
In the sentence, the court can provide a different legal rating to
the fact, different to that contained in the accusation, or even
apply different sanctions to those required, though never higher.
The aforementioned is also supported by Article 22 of the
Criminal Procedures Code, which establishes a clear distinction
between the functions of investigation and prosecution, from the
jurisdictional process.
The Judge cannot perform actions that imply exercising
criminal action, nor can the public prosecutor’s office perform
jurisdictional activities. The Police and other officials that
perform investigative tasks under criminal procedures, are part
of the public prosecutor’s office.
Likewise, Art. 23 of the same Code, establishes the obligation
of judges, to rule over what was brought before them; they
cannot avoid ruling over matters arguing silence, contradiction,
deficiency, lack of clarity or ambiguity in terms of the Law, nor
should they improperly delay a decision.
In Common Law as in criminal regulations, there are petitions
ultra petita, which means “beyond the requested”; this is used in
Law to explain a situation where a judicial resolution is granted,
even beyond what was requested. Also, extra petita, when the
judge provides something different to the requested by a party.
Examples of these are included in the different sentences by the
Supreme Court of Justice in the Dominican Republic,
“Considering, that in the specifics, the a-qua Court received a
request for appeal, by the civil plaintiff Juan Rodriguez
Jimenez, who presented a demand on the violation of Law
5869, Property Violation, against Wenceslao Disla Peralta and
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Iluminada Moronta, resulting this discharged in first degree and
where because of the appeal requested, the reviewing Tribunal
agreed to impose sanctions as explained in a different section of
the sentence, what occurred, even without, as explained by
appellant, the private plaintiff requesting any kind of sanctions,
or sentence for the accused, civil or criminal, but only the
annulment of the first degree sentence and a new trial, for a new
measure of proof, evidence presented and therefore, the a-qua
Court has resulted in the vicious action of issuing a statement
that goes beyond the requested, extra petita, in a case of private
criminal actions, thereby being applicable to take the measured
examined.
Article 25 of the Criminal Procedure Code of the Dominican
Republic establishes that: procedural norms intended for
restricting freedom, liberty, or imposing procedural sanctions,
shall be interpreted on a restrictive manner.
Law 72-02, with regard to money laundering, article 1,
paragraph 13, defines simulation in the following manner:
Commits simulation, the person that declares a false identity or
different to its true identity, or that uses a third party’s identity,
without his knowledge, with the intention of obtaining the
deposit of the assets, funds or instruments on a financial entity,
being this or not, the result of a serious offence. It will also be
considered as simulation, all action that, with the intention of
obtaining a profit, and through manipulation of public or private
documents, electronic media or similar device – scheme,
achieves the transfer of any property asset, in prejudice of a
third party that has not agreed to the action.
Considering the above, we can establish that the Dominican
Judge, once the Public Prosecutors Office has requested the
annulment of a simulated contract, that is actually preventing
the recovery or tracking of goods subject to confiscation, the
Judge is in the obligation of declaring the Nullity of the act, as
long as the Public Prosecutor has so requested and approved.
Preventive Measures
4. Secrecy
LC
 Rec. 4 is not fully complied with,
since the question of confidential

A change in the law is necessary to
specify clearly which competent authority

The Office of the Superintendent of Securities has created an AntiMoney Laundering Unit which has been in operation since 2006. It does not
15
FATF Rec.
5.
Customer
due
diligence
Rating
PC
submission of a STR is not clear.
 The institutions of the Stock Market
and Insurance Market have nothing on
this matter, and they are not submitting
STR’s as required.
Recommended Actions
shall receive and analyse SORs, since in the
present state of affairs the SORs or evidence
deriving from them could be challenged on
the ground that confidentiality was breached
by the SOR being submitted to the wrong
authority, or that the authority in question
analysed the (confidential) information
without being empowered to do so. In this
regard also, special measures should be put
in place to protect the security and
confidentiality of the SORs.

Specific regulations for institutions in the
stock market and insurance market should
be issued.
analyse STRs. This is the exclusive responsibility of the Financial Analysis
Unit of the National anti-Money Laundering Committee, which receives
STRs direct from both stock market brokerage houses and banking and
exchange institutions.
The fact that a FIU receives STRs through a Supervisor does not imply that
quality or security is compromised – everything depends on the procedures
in effect.
In fact, Recommendation 26 stipulates that access to
supplementary information may be “direct or indirect”.
Such a charge can only be sustained if the data handling procedure is
inadequate or insecure.
Legally speaking, the information, in the case of banking institutions, must
be obtained via the Office of the Superintendent of Banks, which has a
history of efficient service to the Competent Authorities requesting
information from it.
Bank Secrecy cannot be invoked as a defence, so long as the Competent
Authorities request the information through the Supervisor, in this case the
Superintendency of Banks. The latter has at its disposal a structure which
operates with full attention to the requirements and to assessment of risks
with a view to their mitigation [Translator’s note: The Spanish text has
“litigación” (litigation), which is probably a misprint.] It does not analyse
STRs.
The National Securities Council (CNV) issued Resolution No. R-CNV-201201-MV, dated February 3, 2012, which governs the Prevention and Control
of Money Laundering and Financing of Terrorism in the Dominican
Securities Market. Section V, Chapter I, articles 35 to 42, reaffirm the duty
of the reporting entities to notify the FAU of suspicious transactions, the
only authority competent to analyse and distribute information, also
reaffirming the confidential nature of said information. The minimum
support or documentation that must accompany the STR is established.
 There is need to strengthen the 
The Superintendency of Banks, the 
Article 5 of Act 183-02 covers the structure of monetary and financial
culture of CDD and apply it in greater
Financial Analysis Unit and the Institute of
administration, of which the Superintendency of Banks is a part. We
depth principally to clients considered
Cooperative Development and Credit should
suggest, also, that Articles 18 and 19 of the Act be studied for clarification
to be high risk
define an overall and coordinated strategy
of the extent of the authority of the Superintendency of Banks to issue
for application and follow-up of prevention
circulars and instructions, as well as to propose Resolutions to the
 Although the banking and exchange
programmes in
savings and loan
Currency Board, in compliance with the law and in pursuit of its
institutions and the Superintendency of
cooperatives.
Likewise
the
objectives.
Banks comply with Recommendation
Superintendency of Insurance should take 
5 on CDD, the mandatory character
The “Guidelines…” is an illustrative document, suggesting situations
the appropriate steps in the area of
and the legal basis of the guidelines
which might lead to a level of business that must be considered unusual,
AML/CFT with regard to insurance
issued by the Superintendency of
and others that must be considered suspicious. This is to preclude the
cooperatives, as laid down in Article 116 of
Banks on the subject should be
Regulated Institutions claiming ignorance in clearly defined
the Regulations attached to Act 127, the
reinforced or defined.
circumstances.
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FATF Rec.
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Cooperatives Act
 There is need for strengthening on
The “Know your Customer Instructions” is in fact mandatory, since it
site inspection or verification of CDD 
It
is
recommended
that
the
was issued by means of Resolution 006-01, under the mandate, then in
policies applied by the supervised
Superintendency of Securities include in
force, set out by Decree 288-96, which constituted the Regulations
institutions of the Superintendency of
Sub-paragraph q of Article 4 (Basic
corresponding to Act 17-95 concerning Narcotics and Prohibited
Banks.
Definitions) of its “Regulation for Securities
Substances. Since then we have been observing enhanced due diligence
Brokers Establishing Guidelines for
requirements, which gave validity to this document as an adjunct to the
 For their part, the Securities and
Functioning and Manual of Accountancy
new Act 72-02. Even so, it was re-structured in the light of the new
Insurance Markets have done little or
and Plan of Accounts” the origin of the
norms, both national and international, regarding terrorist financing.
no work on ALM/CFT.
funds to be invested as one of the elements
Since the latter had not been criminalised, the instructions relating to it
 There is need for strengthening
in the rating of the client.
were described as good practices.
mechanisms in the financial and
In the stock market emphasis should be 
The Superintendency of Banks, together with the International
exchange system of the Dominican 
given to filling out the profile of the
Monetary Fund, has taken advantage of a regional programme to put into
Republic to establish the precise
customer and documenting information
effect a new procedure divided into on-site and off-site supervisions, with
identification of final beneficiaries.
even after the operation.
It is also
a view to measurement, analysis and mitigation of risks. For this purpose
 CFT has not been legally enshrined
recommended that there should be cross
we have developed the “Off-site Analysis Matrix”, the input to which
reference of information with that obtained
consists of reports submitted by banking institutions, and an ”On-site
by the bank in which the investor’s money
Verification Matrix” listing everything that the inspector/analyst must
is deposited.
verify during the inspection. Both of these generate values for
measurement of the compliance level of the institutions. On this basis, a

It is recommended that legislative,
sort of “Compliance Ranking” is being established. The programme is
regulatory and administrative measures
expected to be in place by the end of 2008.
more specifically related to the subject of
AML/CFT should be developed, as well as 
The above-mentioned Matrices contain variables aimed at international
Warning Signals applicable to the nature of
operations. This implies measurement of the operations and, logically, the
business of firms in the stock market and
identification of the customers who may use these services.
insurance market.

Supervision and introduction of preventive procedures in designated

The National Anti-Money Laundering
non-financial institutions is the responsibility of the Financial Analysis
Committee should, as a Policy of State,
Unit of the National Anti-Money Laundering Committee. Cooperatives
associate itself more closely with, promote
(closed or open) fall under the Dominican Cooperatives Institute
and follow up the work being done by the
(IDECOOP), pursuant to Act 127-64. A programme of preventive
Superintendency of Securities and the
policies is being applied in this sector, as part of an Overall Plan for
Superintendency of Insurance in the field of
strengthening prevention in designated non-financial institutions.
AML/CFT, which up to the present moment 
The Unit for Prevention of Money Laundering and Terrorist Financing
is non-existent.
of the Superintendency of Securities has strengthened its compliance

The law against terrorism should be
verification procedures by means of systems for cross-checking
approved as early as possible, in order to
information submitted by its supervised institutions, the stock market
provide financial and exchange institutions
outlets.
with a legal basis for implementing CFT 
The Superintendencies of Banking, Securities and Insurance already
prevention programmes not simply based on
initiated the AML supervision of the institutions that are of their
“international best practice”.
competence, and they have adopted the good practices and

Special laws and/or regulations on
recommendations that were suggested. The Superintendency of Insurance,
shareholder control, correspondent banks,
additionally, is working to develop its Preventive Unit. For this purpose
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FATF Rec.
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and cross border financial and insurance
the Superintendency of Banks is collaborating in the establishment of a
services should be developed on the coming
programme of technical assistance for the achievement of an efficient
into force of free trade treaties such as that
organisational structure. It is hoped that this unit will be operative by the
signed between Central America, the
first quarter of 2009.
Dominican Republic and the United States 
The National Anti-Money Laundering Committee is the body for
(GAFTA-DR).
planning ML prevention and detection policies. Within it are the

The Superintendencies of Banks,
Financial Analysis Unit and the National Office for seized and
Securities and Insurance should strengthen
Confiscated Property. These, each in its own area of competence, are the
the follow-up to the ALM/CFT directives
executive instruments of the plans and resolutions issued by the
issued by Basel (BCBS), IOSCO and IAIS,
Committee. The committee has developed a kind of conglomerate of
respectively.
agencies, which are concerned in one way or another with prevention
(Superintendencies), money (Customs and Internal Revenue),
investigation (National Police, National Drug control directorate, Port and
Airport Security) and prosecution (Ministerio Público), as well as the
Financial Analysis Unit (FAU), with a view to bringing about the greatest
possible coherence and thus ensure concerted and efficient action.

There are clear rules for control by banks of shares in the
Correspondent Bank (see Rules for Cross-border Transactions).
Admittedly there is nothing in the law that limits shareholding by
Financial Groups or Holding Companies in offshore banks, and this limits
supervision of the member institutions of the group. This aspect is fully
covered in the Bill to amend Act 183 (the Monetary and Finance Act). In
keeping with the terms of the DR-CAFTA, the focus in this regard is on
shareholding of groups in the signatory countries, basically for the
purpose of avoiding monopolistic situations harmful to the market. In the
particular case of the Dominican Republic, bearer shares, for example, are
not permitted.

These minimum standards have been taken into account in the design
of on- and off-site verification procedure policies by the abovementioned
Superintendencies. The same applies, mutatis mutandis, and only as a
basis for reference, to the policies implemented by the Superintendency of
Pensions. In scope they exceed the minimum BCBS, IOSCO and IAIS
guidelines.
There is an ongoing effort to raise awareness among regulated DNFBPs.
The
Superintendency
of
Securities
is in
the
process of approval of the revisions
to the
Standard that lays
down
provisions on the prevention, control and monitoring of money laundering
operations applicable to the Dominican Security Market.
By virtue of paragraph IV, Article 86 of Law 87-01 concerning Social
Security, a mechanism for the processing of information of updated database
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FATF Rec.
Rating
Recommended Actions
is created in relation with affiliates (deductions, profitability, voluntary and
extraordinary contributions). In addition, Pensions Funds Management
Companies (AFP) are enforced to keep accounts and separate accounting of
affiliates divided in: personal accounts, pension fund account, investment
account and own equity and operations account. This facilitates a higher
knowledge of the client profile and economic and financial profile. (Art.
83.- Independent Accounting and Equity Law 87-01 which creates the Social
Security Dominican System. AFPs are enforced to establish controls
necessary to make sure that information and credentials submitted by
affiliates are true. AFPs must keep updated the records of the affiliates
domicile. (Article 10 and 13 Decree 969-02 – Pensions Regulation)
The aforementioned Resolution No. R-CNV-2012-01-MV, reinforces
several aspects pertaining to Customer Due Diligence and Extensive
Customer Due Diligence, established in Section III, Chapter I, articles 11 to
25. It reinforces the obligation to know the customer and the final beneficial
owner, specifying the minimum information that must be requested on the
customer, placing emphasis on the duty to verify or confirm the data
provided by same (which must be included in the customer’s file), identify
the final beneficial owner with the obligation to take reasonable measures in
order to understand the ownership and control structure of the customer,
obtain information on the purpose and nature of the business relationship;
place special attention on the business relationships forged with or where
there are NGO’s and PEP’s, establishing an ongoing process and for
updating customer data and respecting the business relations and the
transactions conducted in the course of the relationship.
Resolution No. R-CNV-2012-14-MV of the Superintendence of Securities
dated 1st June 2012, which addresses “Certain provisions on the process of
transfer of ownership of the Securities subject to offer to the public in the
form of cash free transactions", establishes in article 4 that the transfer of
securities in cash free form shall be registered in a central securities
depository, and settlement schemes approved by the IMS should be used.
Similarly, article 5 paragraph I obligates the reporting entities in the
securities sector to have documentary support justifying each transfer of
ownership, which should include information such as the name of the
company or the client name, date and time at which the transaction took
place, type of operation, nominal value, negotiated price, customer
identification, etc. This resolution was issued taking into account
international guidelines and the FATF Recommendations, which prevent
legal operations aimed at ownership of generic goods in which there are
no activities, actions, transactions or operations that justify the acquisition.
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 See resolution 01-13 of the National Committee against Money
Laundering.
 That the Insurance Sector as reporting, obliged entity maintains
records as established by the FIU - FAU in Law 72-02, for this,
it will supervise the implementation and compliance with such
provision, every 3 months.
 Training provided to entire Insurance Sector, with special
emphasis on enhanced due diligence required to identify real
beneficiary.
 Compliance officers were trained and Money Laundering and
Terrorist Financing prevention units were created.
On-Site Monitoring: The Superintendency of Banks developed a
questionnaire for Compliance personnel, with the aim of evaluating
the training of personnel and according to their ratings require
additional training or a refocusing of the training to be offered.
These qualifications are taken into account to establish the
Compliance Ranking of the Financial Intermediation and Exchange
Entities and with this an awareness of the level of risk of each.
The Superintendency is coordinating the Governmental
Commission, which is working to get the Dominican Republic to
sign a Compliance Agreement with the United States for the
purposes of getting the Dominican institutions compliant with the
FATCA Bill.
 The Financial Analysis Unit and the Superintendency of
Banks, have carried out training of all Reporting
Entities, focused on broadened due diligence that
identifies the beneficial owner
6.
Politically
exposed
persons
PC
 The
banking
and
exchange 
Strengthen the culture of customer due 
The Superintendency of Banks, in the process of creating an adequate
institutions and the Superintendency of
diligence (CDD) applied in greater depth
culture of compliance, on bases precise enough to facilitate its application,
Banks have just begun to deal with the
principally to clients considered to be high
due diligence for identification of PEPs and how to deal with them, have
subject of PEPs.
risk.
been included in the “Guidelines for Prevention of Money Laundering for
Banking and Exchange Institutions and in the “Know your customer
 There is no means of compelling 
It is recommended that regulations be
Instructions”. [Translator’s note: The syntax of this sentence is defective
them to obtain the approval of the
issued to require banks and exchange
in the original.
There are probably words missing]. The
senior management of the institutions
institutions, stock market and insurance
Superintendencies of Securities and Pensions have drawn attention to this
in order to enter into contracts with
firms, to obtain the approval of their
aspect, on the basis of the provisions of the OAS Inter-American
PEPs.
respective Boards of Directors before
Convention Against Corruption, which was ratified by the Dominican
entering into contracts with PEPs and
 In addition, in the securities and
Republic on 20 November 1998, and therefore has the force of law.
correspondent institutions.
20
FATF Rec.
Rating
insurance markets the subject
practically unknown
Recommended Actions
is

There should be legal or regulatory 
The Superintendency of Banks displays on its web page links to the
measures to enhance the role and
staff lists of all public agencies, pursuant to the Freedom of Information
commitment of the Boards of Directors and
Act promulgated by Decree 200-04 of 28 July 2004. This Act stipulates
upper management of bank and exchange
that these data must be available to anyone who needs them.
institutions in the approval and application 
The decision to do business with a person belongs to the each
of AML/CFT prevention programmes,
institution, unless the physical or legal person concerned is on the list
especially with regard to CDD policies
issued by the UN Security Council. Each institution must determine the
applied to PEPs and correspondent relations,
risk it assumes in doing business with a particular person, and this risk is
and in non-face to face operations.
assessed by the institution’s supervisory body. Logically, they must

formulate enhanced preventive policies for PEPs and persons who are
nationals of high-risk countries or operate from one of them. That is why
the documents mentioned and the Inter-American Convention Against
Corruption impose special requirements

Through Circular SB: No. 014/10, dated September 7, 2010, the
Superintendency of Banks establishes the requirements for Politically
Exposed Persons, while Circular SB: No. 013/10 of the same date, updates
the Know Your Customer Guidelines.
 The aforementioned Resolution No. R-CNV-2012-01-MV, adopts a
definition for Politically Exposed Persons, which specifically states: “is any
individual identified at the start of or during the contractual relationship,
who is serving or has served as a senior public official, in his own country
or abroad. It also includes family members up to the second degree of
consanguinity and the first degree of kinship (spouse), associated persons
and close collaborators. Also included are those persons holding top
ranking executive positions, belonging to any business association, business
or other entity that has been organised by or for the benefit of such persons.
Similarly, it includes those with whom financial or business relations are
maintained publicly. Also included among PEP’s, are the main executives of
Political Parties and Organisations, as well as diplomatic and consular
representations;” Sub-paragraph a) of article 19, establishes the obligation
of the reporting entity to pay special attention to transactions conducted by
PEP’s. Article 20 provides measures for extensive due diligence, making it
mandatory to obtain approval from the high ranking directors of the entity in
order to establish business relations with those customers, and to also take
measures to determine the source of funds and conduct ongoing and
thorough monitoring of the business relationship. It provides that reporting
entities must have proper risk management systems in order to determine if
a customer is a PEP.
In 2011, the SIB received a total of 10,678 notifications from the EIFC
regarding transactions conducted by or with PEPs.
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By virtue of Decree No.486-12, dated August 21, 2012,under the Executive,
was established, the General Office of Government Ethics and Integrity
(DIGEIG), as the governing body as it relates to ethics, transparency, an
open Government, fight against corruption, conflict of interest and free
access to information, in the administrative governmental sphere. The
DIGEIG is a body with administrative and financial independence, which
has authority to receive complaints of alleged violations to the detriment of
the State, in violation of the law of Public Administration (Law 41-08);
undertakes administrative investigations as a result of public rumour, with
the occurrence of an act or an act of corruption by a public servant; channel
the corresponding instances of allegations of acts of public corruption made
by individuals or institutions on intentional actions of public officials or
employees; submit the facts under investigation to the Public Prosecutor's
Office; among others. From that date, the DIGEIG will follow up on the
compliance by senior public officials (including the President and VicePresident of the Republic) of the commitment made by the signing the
"Code of Ethics Guidelines".
Republic in June 2012, pending hearing in the Deputies Chamber.) this Law
seeks to institute an Automated and Uniformed National System for Sworn
Declarations of Assets for Public Officials consistent with constitutional
provisions (Article 146 of the Constitution), establishes the institutions
responsible for the implementation and to rank their authority, facilitate
institutional coordination, promote ethical management, and provide the
public Entities of control and investigation of administrative corruption, the
policy tools that will allow them to exercise their functions efficiently. This
law is part of the commitments made by the country, in the Inter-American
Convention Against Corruption of the Organization of American States, and
the Convention of the United Nations Organization against Corruption.
The law criminalizes the offence of illicit gain by officials of the public
sector, with penalties ranging from five (5) to ten (10) years, constituting an
offence pre-ceding money-laundering. In the sentence is included, the
confiscation of property not proven to be of legitimate origins, and its
confiscation in favour of the Dominican State, disqualification from holding
public office from two (2) to ten (10) years Legal provisions relating to bank
secrecy, fiduciaries or attorneys, they are not impediments to compliance
with the law, with the authorities being obligated to provide all of the
required information no later than 10 days (Arts. 13-20).
22
FATF Rec.
Rating
Recommended Actions
-Off-Site Monitoring: We received the "Politically Exposed Persons
Reports". This is a monthly report, through which institutions inform
of the PEP's that have done business, or have operated accounts.
The Superintendency of banks continues forging a risk-based supervision
methodology. Currently we are reviewing the procedures for On-site
monitoring, in order to make them up to date with the new standards.
Additionally been the matrix profiles of risk factors (customers, products,
geographical and currency) have been redeveloped.
The training plan that the UAF developed with the Reporting Entities,
has been focused on customer due diligence, which includes the
approval of the Board of Directors to enter into contracts with PEPs
7.
Correspond
ent
banking
PC
 There is no provision requiring 
It is recommended that banks operating  These indications have been included in the Bill to Amend Act 183-02
financial and exchange entities
in the Dominican Republic should scrutinise (the Monetary and Financial Act), even though due diligence regarding
supervised by the Superintendency of
and monitor in greater depth foreign banks management of accounts of and in foreign banks is clearly specified in the
Banks to obtain approval of their
that are their clients or with which they have “Know Your Customer Guidelines”. This is because they are based on
senior management before entering
correspondent relationships, that is to say operational and not simply business transactions. (See Act 72-02). In this
into new correspondent relations.
their foreign client banks. They should respect it is the duty of banking institutions to know with whom they are
However, each institution does in fact
obtain information on the management, performing transactions
do so as part of good banking practice.
finances, reputation, regulation and anti-  Additionally by virtue of art. 55 Law 72-02, the National Committee
money laundering measures applied in the requested from the Monetary Board to exercise the faculties of art. 9 Law.
 They do not document the
overseas bank. They should not simply rely 183-02 to issue regulations in this area and establish minimum requirements
AML/CFT responsibilities of the
on the fact that a bank has a valid licence to for the initiation of corresponding accounts.
financial institutions with which they
operate issued by foreign jurisdiction in  Circular SB 14/10 issued by the Superintendency of Banks on September
maintain correspondent relations.
order to accept it for a correspondent 7, 2010 establishes the information requirements for correspondent
 In the Securities and Insurance
account.
Markets no special AML/CFT measure
relationships. Circular SB 13/10 of the same date updates the Instructions on

It is advisable for banks in the Dominican CDD. Circular SB 14/10 was issued without prejudice of the regulations that
is applied in this area
Republic to carry out systematic review of the Monetary Board may issue in the future, as stated in the previous
their correspondent accounts with foreign paragraph.
banks and ensure that these apply Resolution R-CNV-2012-01-MV, in its Article 14, provides for the
AML/CFT measures, in order to identify establishment of Cross-border or Similar Correspondent Relations, the
23
FATF Rec.
Rating
Recommended Actions
high risk banks and close accounts with
banks that are classified as problematic.
following: have sufficient information on the reporting entity represented; be
fully aware of the nature of its business; the reputation of the institution and
quality of supervision, whether or not it has been investigated or inspected
by the AML/CFT control authorities; evaluate AML/CFT controls. It is
mandatory to obtain approval from the high ranking directors before
establishing new correspondent securities relations with other transnational
intermediaries; obligation to document correspondent relations between
national and foreign entities. The latter must be authorised to operate in
jurisdictions recognised by the Superintendency of Securities (SIV); the
reporting entities must notify the SIV of the correspondent relations that
they establish and must forward a copy of the agreements and their
amendments.
With respect to the role and commitment of the Boards of Directors and
Senior Management, the reporting entities of the stock exchange sector,
Article 26 establishes the obligation of the reporting entities to create and
apply proper internal control procedures aimed at AML/CFT measures, by
formulating internal policies, procedures and controls, appointing a
Compliance Officer, establishing an ongoing employee training programme
and conducting internal and external audits to test the system, which must be
approved by the Administrative Council or the equivalent body of the
reporting entity and submitted to the SIV for approval, when requesting its
registration in the Registry for the Securities Market and Products. The
existing entities must present the aforementioned Manual within a period of
120 days counted from the publication of the regulations.
Of the 19 countries with which the EIFC’s conduct correspondent
transactions, only one was on the OECD’s list as a tax haven, having been
removed from said list in October 2011.
The Superintendency of Banks, receives every six months,
"Correspondent Banking Reports". Through this Report, the entities
report with which banks they hold correspondent accounts, its
location and the amount they work with. This is to measure the
degree of risk on the basis of Foreign Banks that operate accounts of
local authorities and the volume of its operations.
FATCA Bill.
24
FATF Rec.
8.
New
technologie
s&
non faceto-face
business
Rating
LC
 There is need for mechanisms to
measure the frequency and volume of
operations, in international wire
transfers of funds, for which network
of ATMs and correspondent links are
used.
 There is need for more specific
rules for supervision and discipline in
the area of telegraphic or electronic
financial operations.
 In the securities and insurance
markets no special AML/CFT measure
regarding technological advances
generating non face to face operations
is applied
9.
Third
parties and
introducers
NC
Recommended Actions

It is desirable to promote and reinforce  The know-your-customer responsibility apply equally to electronic
CDD control over framework contracts transactions. The provisions of the “Know Your Customer Instructions”
which
govern
electronic
operations apply to e-banking. Non-compliance implies that the finance or exchange
characterised by lack of physical presence institution, the Regulated Entity, incurs the risk of being used for money
of the parties
laundering and the possibility of the corresponding penalties.

More specific rules for supervision and  The FIU is tasked with formulating a document that can be used as a
discipline should be incorporated in the area guide by the DNFBPs in any possible electronic operations.
of telegraphic or electronic financial  The aforementioned Resolution No. R-CNV-2012-01-MV, in its Article
operations, not only in order to promote 21, calls for the establishment of policies and procedures regarding specific
them and make them more flexible, but to risks associated with business relations or transactions that do not involve
provide them with security and transparency the physical presence of the parties (not face to face), with the obligation to
and reduce their risks.
give special attention to instruments or new technologies that favour
anonymity, for which measures must be adopted in order to avoid their use
in money laundering.
The Postal Institute of Dominica (INPOSDOM) has recently included in its
services, emergency international money orders, which allows for the
exchange of electronic money transfers between the Dominican Republic
and other countries. To this end, the INPOSDOM successfully uses the
International Financial System, a digital tool which facilitates the operation
of postal financial services and provides security when carrying out the
same.
 There are no practical measures to 
Establish
specific
measures,
and  In the Dominican Republic there are two (2) Credit Information Bureaux
assure Financial and Exchange
supervise compliance with them, to require which provide additional information for identification of: ownership of
Institutions which enter into contracts
banks and exchange institutions to be vehicles, telephone numbers, fiscal register or National Register of
with third parties that they will be
certain that the third institution on which Taxpayers, and persons either by name or by ID or voter’s card number.
provided
with
the
information
they rely to apply CDD procedures, will This service is used to verify data in addition to the methods required by the
immediately, or that the said third
supply them immediately with the “Know Your Customer Instructions” for banking and exchange institutions.
parties are under supervision and
information they require on the clients, in Other International Information Bureaux may also be used, as well as the
regulation.
order to be certain that these third free search engines on the worldwide web. This has been recommended to
institutions and/or intermediaries are under all regulated entities
 In the Stock Market and Securities
specific AML/CFT regulations, supervision
Market no measures have been taken
and control.
Two new Credit Bureaux have been licensed, for a total of 4 (only two are
regarding the content of Rec. 9.

Specific regulations should be issued operating).
applicable to institutions in the stock market
The aforementioned Resolution No. R-CNV-2012-01-MV, in its article 13,
and securities market
establishes the obligations pertaining to transactions with intermediaries or
third parties, whether they are conducted through their national branches or
subsidiaries abroad or delegate their functions in intermediaries or third
parties, and must: identify and verify the customer’s information; identify
and verify the final beneficial owner through reasonable measures including,
25
FATF Rec.
Rating
Recommended Actions
when dealing with legal entities, understanding the ownership and control
structure of the customer; establish measures to ensure that it will be able to
access without delay, personal data and other important documentation
related to the CDD procedure of such third parties; be certain that the third
party is regulated and supervised and that measures have been taken toward
compliance with the CDD procedure. Administrative, civil and criminal
responsibility regarding the identification and verification of the customer
falls on the reporting entity that uses the services provided by third parties.
In cases where transactions are conducted on behalf of third parties, the
reporting entities are obligated to demand additional information from their
customers in order to learn the identity of the representative, agents and
those authorised, as well as that of the persons on whose behalf they are
acting, in addition to documentation accrediting their capacity to act duly in
the market (article 11 paragraph.)
The training plan that the UAF developed with the Reporting Entities,
has been focused on customer due diligence, where it is established who
is the beneficial owner.
10. Record
keeping
PC
 No evidence was observed of on- 
There is a need for specific measures,
site verification of the legal provisions
circulars or instructions addressed to
falling within the scope of R.10.
banking and exchange institutions that
provide specific mechanisms or systems for
 Nor are there any specific measures
recording, preserving and managing with
for conservation and recording of
integrity and security all customer and
information.
operation information during the ten years
 In addition, the securities and
established for the purpose.
insurance Superintendencies have done

no work on the subject
Committee is urged to initiate, as a matter of
urgency, a programme of AML/CFT
awareness in the stock market and the
insurance market, to induce the respective
Superintendencies to properly supervise
adequate compliance with regulations for
conservation and recording of information,
which must be available to the competent
authorities.

Art. 51 “Documentation of Operations and Submission of Information”
of Act 183-02 stipulates that the documentation that authorises operations
must be kept on record for 10 years “…in hard copy or whenever feasible
by means of computer procedures and optical files and whatever other
method the Currency Board may decide”. It further states that the
institutions must ensure the integrity of documents and the data therein,
whatever the means of filing used.

The National Anti-Money Laundering Committee has on several
occasions emphasised in writing to the supervisory bodies that they must
comply with the provisions of Art. 41 of Anti-Money Laundering Act 7202. Furthermore, as already stated, it has promoted the formation of a
Group of Agencies active in prevention, detection and prosecution of ML,
with a view to creating synergies

The National Committee Against Money Laundering, jointly with the
insurance Superintendency, is drafting regulations for insurance
companies and intermediaries in order to develop the provisions of
contained in art. 235 of Insurance Law No 146 of 2002.

Regarding the requirement that companies or companies
must keep, record, archive,
preserve and / or managing with
integrity the documentation relating to the shareholders of the company,
society as such and the operations performed during the 10 years
this provision is expressly contained in
the paragraph
26
FATF Rec.
Rating
Recommended Actions
of Article 32 of Law31-11, the General Law of Corporations and Limited
Liability Companies of the such Law.
AFP must keep a file of own transactions as well as those accomplished with
related persons and managed pension funds. Prior the transaction of a
financial instrument, AFP is enforced to record whether it is acting on its
own behalf or by account of pension funds, indicating origin, destination and
date of the transactions. (Art. 84.- Basic Information Registry).
The aforementioned Resolution No. R-CNV-2012-01-MV, in its articles 15
to 17, establishes the obligation to save information for 10 years, all
correspondence sent and received by the reporting entity documenting the
relationship existing between said entity and the customer, as well as the
records confirming the carrying out of operations and the preparation of
physical, digital or electronic documents and information. This provision
includes, by way of regulations, all the areas required in recommendation
10, regarding the stock market sector. This period shall commence from the
moment relations are concluded with the customer. The documentation must
be classified so as to allow its quick location and access, in addition to
protection against fire and destruction.
Resolution No. R-CNV-2012-14-MV, in article 5 paragraph II, obligates the
reporting entities in the securities sector to have all the documentation
available at all times for the IMS, and empowers it to conduct inspections in
order to verify compliance with the provisions. At the same time it
establishes that where there is no proper documentation that will justify the
operation, this cannot be performed. This resolution is binding.
 See resolution 01-13 of the National Committee against Money
Laundering.
 That the Insurance Sector as reporting, obliged entity maintains
records as established by the FIU - FAU in Law 72-02, for this,
it will supervise the implementation and compliance with such
provision, every 3 months.
 Training provided to entire Insurance Sector, with special
emphasis on enhanced due diligence required to identify real
beneficiary.
 Compliance officers were trained and Money Laundering and
Terrorist Financing prevention units were created.
 With Resolution 01-13 issued by the National
Committee against Money Laundering, setting out the
monitoring of compliance with Laws 72-02 and 183-
27
FATF Rec.
Rating
Recommended Actions
02, in the work of supervision and inspection we have
verified compliance with Recommendation 10 on
record keeping which in the Dominican Republic
legally is for 10 years
11.
Unusual
transactions
PC
 In the Stock Market and Insurance
Market no policies for monitoring and
detection of unusual transactions are
implemented.
 There is a need for greater followup, by the Superintendency of Banks
in its inspections, of Warning Signals
and Patterns of Behaviour.

The Securities and the Insurance Market
should develop and introduce AML/CFT
measures.

The banking institutions should invest in,
or strengthen their investment in, specialised
software for better monitoring of their
various products, services, transactions and
operations, among them: online banking,
PEP clients, high risk clients, accounts of
employees and members of the institution,
inactive accounts, credit and debit cards,
automatic cashiers, credit lines, credit cards,
term certificates cashed before maturity,
trusts, safety deposits.

Each banking or exchange institution, on
its own initiative and in its own interests,
should strengthen its internal operations for
diligent and effective compliance with the
respective
manuals
or
prevention
programmes, in order to avoid, detect or
report in a timely manner transactions or
activities which may be suspected of links
with money laundering or financing of
terrorism. Therefore, a greater number of
patterns of operations that could constitute
Warning Signals appropriate to each
institution should be included in the manual,
since each institution is responsible for
knowing its own pattern of business and for
weighing its own risks, and should not wait
for the Superintendency of Banks to issue
such Warning Signals.

Specific regulations should be issued for
the stock market and insurance market
institutions and these entities should have
their own prevention manuals and their own
Warning Signals.
 At the present time the Superintendency of Securities has developed
scheme of Off- and On-Site verification for supervisory purposes, and the
Superintendency of Insurance is engaged in a programme of development of
procedures with the same objective. Both are advised by the
Superintendency of Banks and private institutions.
 All banking institutions, whose assets represent 80% of the national
financial assets, possess the “Monitor” system, which can be applied to all
the services they offer.
 The National Committee Against Money Laundering, jointly with the
insurance Superintendency, is drafting regulations for insurance companies
and intermediaries to comply with Rec. 11
 Trusts are not a legal concept in the Dominican Republic. A Bill will be
put before Congress, but so far there are no standards for regulating this type
of business.
 The Prevention Manuals may contain in their annexes patterns or
indicators of operations that should be considered warning signals. These
will always be limited, but they provide the Regulated Entities with food for
thought. Such patterns are set out in detail in the “Guidelines for Prevention
of Money Laundering and Financing of Terrorism fro banking and
Exchange Institutions”. Furthermore, every Manual must be approved by
the Superintendency of Banks. Any institution violating this requirement is
subject to penalties.
 The Superintendency of Securities requires its regulated institutions to
develop a Manual of Prevention. The Superintendency of Insurance, for its
part, is, as we have said, in the process of formulating or developing
preventive procedures, with the assistance of the Superintendency of Banks
The aforementioned Resolution No. R-CNV-2012-01-MV, in its Article 26,
establishes the obligation of the reporting entities to create and apply proper
internal control procedures aimed at AML/CFT measures, by formulating
internal policies, procedures and controls, appointing a Compliance Officer,
establishing an ongoing employee training programme and conducting
internal and external audits to test the efficiency of the system. Article 37
establishes several symbols by way of information. Article 27 establishes
the minimum aspects of the content of the Manual for the Prevention and
Control of Money Laundering and CFT. Article 31 entrusts the compliance
officer with the task of designing programmes for follow-up, evaluation and
control based on the internal policies, rules and procedures, in addition to
28
FATF Rec.
Rating
Recommended Actions
placing emphasis on training and instruction for the staff of the entity in the
area of AML/CFT.
The UAF during the period September 2012 - September 2013,
received a total of 770,281 reports from the reporting entities, with
7,027 being suspicious operations reports (0.9%) and 763,254 cash
transactions reports (99.1%)
12.
DNFBPs –
R.5, 6, 8-11
NC
 The overall regulatory regime 
Modify the cash operations reporting
includes the majority of the DNFBPs
requirement to require casinos to report
indicated in Recommendation 12, but
operations in excess of $US 3,000, thus
there is no specific regulatory regime
adopting the FATF recommended standard.
to allow adequate application of antiIn addition, ensure that casinos and other
money laundering controls to them. In
DNFBPs defined by Act 72-02 comply with
this regard specific regulations for each
the requirement of submitting these reports
sector should be issued, to enable them
to the Financial Analysis Unit.
to comply with their obligations under 
Ensure that the DNFBPs stipulated by
Act 72-02, adequately and in keeping
Act 72-02 comply with the obligations
with the nature of their operations.
imposed on them as regulated entities by the
Act. In this regard it is recommended that
 Under the interpretative note to
the pertinent regulations should be issued in
Recommendations 5, 12 and 16, the
accordance with the nature of the operations
threshold for cash operation reports by
conducted by these entities, and that they
casinos ought to be $US/€3,000.
should comply satisfactorily with antiHowever, in Act 72-02
it is
money laundering prevention and detection
$10,000.00 or the equivalent in
systems.
national or foreign currency, so the
Carry out statistical studies to determine
threshold should be amended in the 
the weight of each of the DNFBPs in the
corresponding regulation.
economy of the Dominican Republic, in
 The FAU did not supply the
order to give priority to those that represent
Evaluation Commission with any
the greatest risk for the country.
programme or work plan indicating its

The FAU should formulate a work plan
intention regarding the achievement of
including a timetable for providing full
full coverage for the DNFPB sector.
coverage of the sector of DNFBPs identified
 The FAU is just initiating contacts
in Act 72-02.
with some DNFBPs, and that the

Formulate a legal instrument to enable
Evaluation Commission noted the
the regime of sanctions applicable to the
vulnerability of some sectors such as
DNFBPs to be put into effect, or else amend
the betting industry, which is under the
Act 72-02 to empower the FAU to impose
obligation of complying with certain
the relevant penalties.
registration
and
licensing
requirements.
Nevertheless the

The FAU is tasked with submitting to the National anti-Money
Laundering Committee an amendment to Act 72-02 to reflect the limits of
reporting according to the sector to which the regulated entity belongs.
Once the Committee receives and analyses the draft it will send it to the
National Congress for consideration and amendment of the Act.

Progress continues to be made in the programme for including
DNFPBs. The process has admittedly been slow, but has not halted.

The FAU has focused its procedures on what is known as “risk-based
supervision”. This means establishing parameters for deciding which
sectors and institutions within them may be the most risk-prone, and on
this basis concentrating supervisory effort on those which show the
greatest vulnerability.

The Timetable is being revised in the framework of a new strategic
plan. As soon as it is complete we will send it to the Secretariat.

The FAU’s power of sanction entails amendment to the law. It will be
included in the proposed amendment to Act 72-02. However, we do not
consider that this will pose any serious obstacle to the development of an
efficient system of sanctions

The FAU is actively engaged in an outreach and training program for
DNFBPs, especially with realtors, corporate unions and in March/10 they
started with casinos.

Some enforced subjects of the real estate sector have started to submit
reports (ROS). In this year, 2011, a total of 29 ROS have been received.

The Dominican Postal Institute started to send reports (ROS-RTE) to
UAF since October, 2010. To date 69 reports have been made.
Restructuring and strengthening of the Department for the regulation and
supervision of DNFBP’s in the area of AML/CFT of the FAU. Greater
institutional relations were achieved by the FAU with the representatives of
the Dominican Association of Attorneys, the Dominican Association of
Notaries and the Dominican Association of Accountants. Activities,
workshops, discussions and panels on organised crime, money laundering
and financing of terrorism were held across the entire national territory, with
29
FATF Rec.
13.
Suspicious
transaction
reporting
Rating
PC
financial information it generates is not
followed up, and, according to the
relevant authorities, they are under no
obligation to report payouts, increases
in capital, etc.
 Act 72-02 contains the provisions
relating to administrative penalties for
regulated entities. However for the
DNFBPs the Act names the
Directorate General of Internal
Revenue as the competent public body
for the imposition of the respective
administrative penalties. However, at
the date of our visit there was no
evidence of this Directorate having
imposed any penalties on any
DNFBPs. Nor was there any evidence
of contacts between the FAU and the
Directorate
to give effect to the
provisions of Act 72-02. procedure
should be.
 Under Act 72-02 the DNFBPs are
required to report any suspicious
transactions they detect.
The
DNFBP’s have submitted no STR’s It
is important to find out why the
DNFBPs have submitted no STRs, to
institute the necessary rules and
supervision.
Recommended Actions
 The
banks
and
exchange 
Steps should be taken to enable all
institutions under the supervision of
regulated entities, including banking and
the Superintendency of Banks are the
exchange institutions, to submit their
only institutions submitting suspicious
suspicious transaction reports directly to the
transaction reports. This is not done
Financial Analysis Unit (FAU) as expressly
by institutions in the securities and
indicated in Article 41 (5) of Act 72-02, and
insurance markets, in which almost no
in conformity with FATF recommendation
work has been done on AML/CFT.
13. The FAU is the only central authority
competent to “receive, request, analyse and
 And even the banks and exchange
distribute” STRs under Article 57 of Act 72institutions do not submit their STRs to
02 and on the basis of FATF
the FAU in accordance with Act 72recommendation 26. In this regards Article
02, but to their own supervisory body
representatives of the DNFBP’s, to encourage them to dispatch reports. Law
72-02 is in the process of being amended, taking into consideration: a) the
experience resulting from 10 years of implementing the law on ML; and b)
the 40 revised Recommendations, February 2012.
Law 494-06, on Organisation of the Treasury Department (MHA),
eliminated regulatory dispersal with respect to games of chance. Said
Ministry was awarded exclusive authority for granting licences and for
inspecting the operators of that sector, which include lottery games, draws,
charity raffles, casinos and gaming establishments, slot machines and other
electronic games, bingos and any other manifestation of same. From June
2011, absolute regulatory authority took effect, conferred by law 494-06 on
the MHA; as a result of the entry into force of Law 139-11, which, in the
area of taxes, charged the General Directorate of Internal Taxes (DGII) with
the responsibility of collecting and overseeing taxes related to casinos,
lottery outlets, sports betting outlets, slot machines, telephone games and
online games. Said concentration of regulatory and tax functions, has
promoted a process for drafting rules, designing information systems and
creating databases, which must formalise the monitoring of the activities of
the sector and the implementation of policies and procedures geared toward
mitigating risks in the area of money laundering.
The UAF, during the period of October 15, 2012 to September 30,
2013, evaluated, validated, analyzed and digitized, 7,741 reports
submitted physically to the UAF, of which the 86.2% corresponds to
reports forwarded by financial intermediation and Exchange
institutions (6,676) and 13.8% those sent by the DNFBPs.

The Financial Intelligence Unit of the National Committee against
Money Laundering, already receives the STRs directly from all reporting
institutions.

A “Strategic Plan UAF 2009-2012” was developed with an explicit
strategy to reach to, train and oversee the DNFBPs.

The transactions, completed or not, which must be analysed as being
unusual or suspicious are legally established in Decree 20-03 of Act 7202, Art. 10, “Mandatory Compliance Programme for Regulated Entities”,
sub- paragraph C

With respect to insurance companies, as stated before, the National
Committee against Money Laundering, jointly with the insurance
Superintendency, is drafting regulations for that sector to comply with this
30
FATF Rec.
Rating
Recommended Actions
through the Financial Intelligence
1, Sub-paragraph 2 of Act 72-02 should be
recommendation.
Department.
revised to expressly include the FAU as the 
We consider that there is no need to amend Article 1, Sub-paragraph 2
competent authority, which in fact it is.
 There is no legal requirement
of Act 72-02, because the FAU was created as Competent Authority, (see
It is important that the FAU should begin
obligating the regulated entities to 
Art. 57 of Act 72-02). This does not affect the enforcement of the Act or
issue STRs on attempted or not
as soon as possible to exercise its powers
of international principles and standards.
completed transactions.
fully in the matter of STRs.

The Superintendence of Values counts on a Manual or Prevention
 There is no legal requirement for an 
The FAU and National Anti-Money
Program, designed
to
STR to be issued regardless of whether
Laundering Committee are urged to take
prevent, detect and report transactions or activities earlier which take susp
or not there are tax questions involved.
efficient measures to enable insurance and
ects that may be linked to money laundering or terrorist financing, as
stock market firms and their respective
well as their own warning signs .The seats inspected in compliance
Superintendencies to adopt and apply
with the
establishment
of
a Program on
Money
AML/CFT mechanisms, especially with
Laundering Prevention and therefore have a Policies
and
regard to prevention programmes and
Procedures Manual of money laundering, have a Compliance Officer, who
manuals and the submission of STRs.
reports
Suspicious
Transaction,
perform external
testing program through one of External Auditors. The ROS is analyzed

A specific legal requirement should be
by the UAF.
adopted for the regulated entities to issue
STRs on attempted or not completed 
transactions, and also to require an STR to reports (ROS). In this year, 2011, a total of 29 ROS have been received.
be issued regardless of whether or not there 
The Dominican Postal Institute started to send resports (ROS-RTE ) to
are tax questions involved. This would UAF since October, 2010. To date 69 reports have been made.
avoid anyone alleging that the matter is a 
The aforementioned Resolution No. R-CNV-2012-01-MV, in its
fiscal one and should therefore not be article 6, establishes as an obligation, to give special attention to all
subject to analysis or investigation for transactions conducted, regardless of amount, which may be linked in
money laundering.
particular to money laundering; it also establishes the obligation to notify the
SIV of complex and unusual transactions within a period of 24 hours from
the moment the transaction is carried out or attempted. Articles 35 and
following reiterate the remaining regulations on the obligation to inform the
FAU of suspicious transactions and activities, carried out or attempted,
within 24 hours. Article 40 makes it mandatory to dispatch together with the
STR, the documentation supporting the report and the reasons for it being
produced. Article 42 underscores the obligation for the reporting entities to
refrain from revealing to the customer or third parties the fact that an
operation is reported.
Financial Reporting Entities


RTE received from reporting entities in year 2011 go up to 1, 214,
842 and a total of 13, 591 ROS Reports
In 2012, 948, 444 RTE and 7, 830 ROS were received.
Non -Financial Designated Business and Professions (DNFBPs)
31
FATF Rec.
Rating
Recommended Actions




RTE Cooperative entity: 102
ROS Sector 4
RTE Insurance Sector 5
Lawyers 1
Since October 2012 and up to May 2013, a total of 16 reporting entities have
been trained within DNFBPs, 360 persons in total, where we have trained a
Compliance Officer and the Money Laundering Prevention Unit.
Number of reports submitted by Entities in Financial and
Currency Exchange System during the period January 1 to
March 25, 2014: 130 STR
DNFBP: Number of ROS and RTE, submitted to the UAF, for
the period January 1 to 25 of March 2014: 7 STR, 142 RTE.
14.
Protection
& no
tipping-off
PC
 In the Dominican Republic there is
no law protecting financial institutions,
their
management,
officers
or
employees against criminal and civil
liability
for
issuing
suspect
transactions reports.

Specific legal provision should be 
Although reporting institutions are assumed to be of good faith, since
adopted to exempt financial institutions,
reporting implies openness on the part of the reporter, and concealment
their Directors, officials and employees
would be a crime [Translator’s note: this sentence is incomplete in the
from criminal, civil or administrative
original]. Certainly, a clear legal mechanism must be found to ensure that
liability when STRs are submitted.
reporting institutions are protected against civil and criminal penalties.
This will be taken into account in the amendment to be sent to Congress
32
FATF Rec.
15.
Internal
controls,
compliance
& audit
Rating

PC

Recommended Actions
Banking
and
exchange 
Update the regulations and improve the
institutions and the Superintendency
profile, functions and capacities of the
of Banks largely comply with
compliance officers of banking and
Recommendation 15.
However
exchange institutions, particularly as regards
there is still no special legislation 
a)
exclusivity
of
function,
b)
expressly covering financing of
compatibility with other functions in
terrorism.
This issue was only
accordance with the nature, course of
covered by best practices guidelines.
business, structure, capital, volume of

In the securities and insurance
activities and funds of the institution and c)
markets AML/CFT policies are
the role of the compliance officer within the
practically non-existent as well as
compliance committees and the financial
for the supervisor as the supervised
groups.
entities. The concept of compliance 
A permanent requirement is for financial
officer is not implemented in these
institutions to invest in training, technical
sectors.
infrastructure and specialised advisory
services to update all their policies,
procedures and internal AML/CFT control
measures, adapting them to their particular
business regimes and risks, and that these
should go beyond the acts, regulations and
circulars on the subject. The starting point
in this regard should be the assumption that
any regulation issued by the State bodies
always represents only the minimum
requirements to be observed and that it is for
each individual financial institution (which
is best placed to know its own business), to
adopt and apply (with due diligence and in
accordance with best practices and
international standards) additional measures
that may be relevant and effective to deal
with its own risks.

It should be emphasised that Dominican
financial institutitonsshould develop, as part
of theirinternal AML/CFT policies,
procedures and controls, matrices and maps
of risks, taking into consideration various
factors such as the following: the institution
itself, the customer, the product or service,
the distribution channel, the jurisdiction, for
the purpose not only of complying with the
country’s laws, but also for management,







See Official Communications 0310 of 28 January 2004 and 1892 of 07
July 2004, which set out the profile, tasks and scope of the work of the
Compliance Officer. They also mandate updating of these officers and
contain reminders of their duties. On this basis the Superintendency of
Securities has developed a system and the Superintendency of Insurance
will do likewise
It is legally mandatory for the staff of every regulated entity to keep its
staff trained. Any banking or exchange institution which fails to do this
may incur penalties. Every institution develops internal training activities
and takes part in outside ones. In addition, the Superintendency of Banks
promotes one or two training events yearly for institutions and bodies of
the securities, insurance and pensions sectors.
The institutions are being encouraged to develop customer, product,
distribution channel and geographic area risk profiles, to enable more
resources to be devoted to higher-risk customers and products. Within the
training courses they are furnished with technical tools to help them to
accomplish this.
Terrorist financing was criminalised in the anti-Terrorism Bill passed in
the Chamber of Deputies and now before the Senate for approval and later
promulgation by the Executive. Its passage is unlikely to present
problems, since there is consensus on the issue.
In-house Prevention Policy Manuals, as stated earlier, are issued by
each institution and must be approved by the Superintendency of Banks
for its supervised entities. The same system applies to the
Superintendency of Securities, and is being put into effect in the case of
the Superintendency of Insurance.
The UAF will implement a new awareness rising program with
reporting institutions, as a result of the new strategic plan that is to be
developed.
Resolución 265-06 issued by the Pensions Superintendence (SIPEN)
dated May 11, 2006 enforced AFPs to appoint compliance officers who
verify the application of money laundering regulations and provide
functions and obligations of such officer.
The aforementioned Resolution No. R-CNV-2012-01-MV, in its articles 26
to 34, establishes the obligation to create and apply proper internal control
procedures, geared toward preventing (concealment, fraud, management and
investments of securities) both laundering and financing of terrorism
operations; it is mandatory to formulate programmes to prevent such
offences, which must include AML/CFT prevention and control, which is
33
FATF Rec.
Rating







Recommended Actions
monitoring and reduction of risk.
It is recommended, as sound procedure
and best practice, that the Board of
Directors or senior management of the
various financial institutions should approve
AML/CFT prevention programmes and
policies and should exercise continual
surveillance of their implementation. The
Board of Directors and senior management
should keep informed of the development of
prevention programmes and policies
through periodic executive reports at least
once every four months.
Efforts should be made to coordinate
skills for overall consolidated supervision of
the financial systems: banking, stock market
and insurance, as mandated by Article 1(d)
of Act 183-02.
Committee should urge the Superintendency
of Securities and the Superintendency of
Insurance to require institutions in these
markets to apply internal AML/CFT
procedures and controls, and supervise the
operation of such procedures and controls.
Develop for the DNFBPs regulations
concerning the functions of the compliance
officer, and his or her level of
independence.
Implement special regulations for the
DNFBPs concerning vetting procedures for
staff, as well as the continuity of checks to
be carried out on them during their period of
employment.
Normar lo relativo a que los NPNFD
mantengan una auditoría independiente para
comprobar el cumplimiento de las políticas
y controles.
Carry out the relevant verifications of the
DNFBPs concerning compliance with the
anti-money laundering norms, in regard to
supported by at least four (4) pillars: formulation of internal policies,
procedures and controls; the appointment of a Compliance Officer; an
ongoing employee training programme; and the conducting of internal and
external audits to test the system. Article 50 of the regulations establishes
mandatory compliance with same.
It is established as mandatory (Articles 29, 30 and 31): a) the creation of a
Compliance Committee and Unit; the exclusive functions of the Compliance
Officer are those pertaining to the prevention, control and implementation of
AML/CFT measures, and the role of the Compliance Officer is defined
within the Committee; b) the drafting of a risk matrix that would establish
procedures and systems for the periodic evaluation of the risk levels attained
by the reporting institution, which must take into account the aspects of
laundering and financing of terrorism, in addition to all areas of operation,
customers, products and services offered (article 31, subparagraph e) and
32), among others; c) the permanent establishment of a Compliance
Committee responsible for drafting the Manual for AML/CFT Prevention
and Control
Article 46 creates the AML/CFT Prevention and Control Unit of the SIV, an
area with technical and operating conditions in order to comply with Law
72-02 on Money Laundering with respect to supervision, prevention,
detection and control of the policies implemented by the reporting entities
regarding compliance with said law of the new regulations. Included among
its functions is the conducting of in situ inspections to verify the fulfilment
of the internal prevention and control programmes, among others. The
Compliance Committee and Officer are obligated to prepare an Annual Plan
for the Follow-up, Evaluation and Control of the AML/CFT Prevention and
Detection Programme, for the purpose of verifying the degree of compliance
with the regulations in force, the internal plans, programmes and controls
adopted (Articles 33 and 34), through internal and external audits.
Resolution SIPEN No. 307-10 on Registration of External Auditors.
It replaces the Resolution 08-02.
This regulation establishes in article 6 that the External Auditors
Firms may not provide external audit services to the AFP nor audit
the Pension funds in cases where their partners have been declared
insolvent, convicted for crimes of an economic nature or of money
laundering, declared legally incapable; or convicted by final and
irrevocable court to sanctions for criminal offences.
Currently, there are five (5) AFP: AFP Popular, AFP Siembra; AFP
Reservas; AFP Scotia Crecer and AFP Romana.
34
FATF Rec.
Rating
Recommended Actions
the compliance officer, audit functions,
knowledge of employees and other
obligations included in the rules.
Draft Resolution that sets the standards of corporate governance for
Pension Fund Administrators
This draft, which is being negotiated with the AFP sets out that persons who
have been declared insolvent and those convicted for crimes of an economic
nature or money laundering may not be part of the Board of Directors of an
AFP
16.
DNFBP–
R.13-15 &
21
NC
 Act 72-02 requires DNFBPs to 
Carry out the necessary verification to
report suspicious transactions they
determine whether the DNFBPs comply
detect. Despite the above, the reasons
with the provisions of Act 72-02 concerning
for the DNFBPs not submitting any
the detection and reporting of suspicious
suspicious transaction reports should
transactions, since at the date of the visit of
be investigated.
the present Evaluation Commission, this
sector had presented no suspicious
 In addition, in accordance with
transaction reports
Evaluation Criterion 13, transactions
Regulations concerning financing of
related to financing of terrorism should 
be taken into consideration, however
terrorism should be issued to enable the
there is no CFT legislation enacted.
DNFBPs to report suspicious transactions
relating to this subject.
 The reasons for the DNFBPs not
having presented any suspicious
transaction
reports
should
be
investigated, regulated and supervised.
 There are no CFT laws requiring
compliance by DNFBPs.
 The FAU has recently initiated
contacts with some DNFBPs.In the
institutions visited as a result during
the evaluation, no compliance officers
had been appointed nor had any of the

As mentioned earlier, the FAU will put into effect a new awarenessbuilding programme for regulated entities, as will part of the new strategic
plan to be formulated.

Since 1970 terrorism has been a serious offence, and therefore a
predicate offence for money laundering. This helped the authorities to put
in place the compliance standards in the banking and exchange
institutions following the events of 11 September 2001. As mentioned
earlier, terrorist financing was criminalised in the anti-Terrorism Bill
passed in the Chamber of Deputies and now before the Senate for
approval and later promulgation by the Executive. Its passage is unlikely
to present problems, since there is consensus on the issue.

reports (ROS). In this year, 2011, a total of 29 ROS have been received.

The Dominican Postal Institute started to send reports (ROS-RTE ) to
UAF since October, 2010. To date 69 reports have been made.
35
FATF Rec.
17.
Sanctions
Rating
PC
Recommended Actions
ML prevention policies and procedures

The
reporting
Entities;
Insurance,
Independent
required by Act 72-02 been
Professionals, Real Estate Agents, Credit Unions, have their
implemented.
compliance officer and they are reporting both ROS as RTE to
 Nothing was discovered in the antithe UAF, a result of the training they have received.
money laundering rules concerning the
functions of the compliance officers
DNFBP: Number of STR and RTE, referred to the UAF, for the
appointed by DNFBPs, or their duties,
period January 1 to 25 of March 2014: 7 STR, 142 RTE
and therefore there is no certainty as to
the level of independence they enjoy.
 Nothing was found to indicate the
extent of the vetting that DNFBPs
should apply to their employees before
recruitment, or in the course of their
employment.
 Nothing was found in the antimoney laundering rules to indicate that
the DNFBPs are required to maintain a
system of independent audit to prove
compliance with policies and controls.
 At the date of the visit of the
Evaluation Commission the relevant
verification of the DNFBPs had not
been carried out to determine whether
or not they are in compliance with the
provisions of Act 72-02. That is to
say, the FAU presented no evidence
that such a review had been carried
out.
 There is no law against
financing of terrorism.
 According to the supervised 
The Superintendencies of Banks, 
Sanctions, and the bodies responsible for applying them, are clearly set
entities, in practice neither the
Securities and Insurance should apply
out in Act 72-02. When the Act was drafted it was assumed that the FAU
Superintendency
of
Banks,
of
efficient, proportionate and dissuasive
would be a purely administrative body, with no power of sanction. It is
Insurance or of Securities has imposed
administrative penalties for non-compliance
intended to endow it with such powers in the amendment to be requested
a single administrative penalty for
on the part of the financial institutions with
of Congress. What remains to be done is to develop the procedures for
AML issues.
However, the
regard to AML/CFT prevention, since up to
enforcement.
Superintendency of Banks provided us
the present they have not imposed a single 
To date, some institutions have been penalised for non-compliance with
with figures showing 2 penalties
penalty in this area. For dissuasive purposes
Act 72-02, following on-site and off-site verifications or inspections by
imposed in 2002 and 9 in 2003.
it is desirable that these penalties should be
the Superintendency of Banks
published in the national print media, in 
 At the time of the visit of the
The
Superintendence
of
Banks closed from
May 2009 until
accordance with the relevant legislation.
Mission no criminal, civil or
December 2010,
four
(4)Financial
Intermediation
36
FATF Rec.
Rating
Recommended Actions
administrative penalty in the area of 
Acts 183-02 and 146-02 and 19-2000
financing of terrorism was provided.
should include the possibility of revoking,
 To
date of the visit of the
restricting or suspending the respective
Evaluation Commission, there was no
operating licences of entities under the
evidence of any active control or
supervision of the Superintendencies of
sanction having been applied to the
Banks,
Insurance
and
Securities
DNFBPs by the Directorate General of
respectively.
Internal Revenue.

Act 72-02 should be amended to make
 Nor was there any evidence of
the Superintendencies of Insurance and
contacts with the FAU and this
Securities competent authorities for the
Directorate to formulate the respective
application of AML penalties.
legal mechanisms to enforce the
sanctions provided in Act 72-02.
 The FAU has no programmes, plans
or work timetables, supported by
resources, for identification of
DNFBPs and their incorporation as
regulated entities.
 There is no sanctions regime for
DNFBPs.
 There is no law against financing of
terrorism.
 There are no relevant regulations
for adequate control of DNFBPs.
Institutions and 46 Exchange Agencies, by not having the appropriate
authority and for failing to comply with the Law on Money
Laundering1972-1902.
 In accordance with paragraph “m” of Article 108 of Law 87-01, the
Pensions Superintendence is empowered to impose fines and penalties to
Pension Fund Administrators and currently has a great number of
resolutions such as 265-06, 307-10, 78-03, 316-11 and 02-02, which fully
implement to prevent money laundering. Likewise, SIPEN is empowered to
close and charge fines to individuals or entities that operate in an illegal or
irregular manner. It may decide on the closing of activity, or imposition of a
penalty regardless of the criminal and/or civil liability applicable. (Art. 90)
The Internal Taxes General Direction (DGII) through General Regulation
06-2011 dated June 29, 2011 is empowered to apply sanctions over closure
of establishment to lottery banks and sport bets that operate without
authorization regardless of other applicable penalties. Such regulation
enforces these establishments to monthly submit affidavits evidencing: gross
sales of the term and liquidation of paid prizes. Although this is a tax
measure represents an improvement in the registration of lottery and bet
banks, as well as fiscalization of profits thereof.
The aforementioned Resolution No. R-CNV-2012-01-MV establishes, in the
event of non-compliance with this regulation, the enforcement of
administrative penalties that correspond by virtue of Law 19-00, its
Regulations on Enforcement and other complementary regulations.
In 2011, the SIB processed fifteen (15) requests for penalties: 10 for
exchange agents; 3 for multiple banks; and 2 for exchange and remittance
agents.
Resolution No. R-CNV-2012-14-MV sets out in article 6, mandatory
compliance with this standard, and provides that the breach, failure,
omission or negligence of same, shall be liable to administrative sanctions
Republic in June 2012, pending hearing in the Chamber of Deputies.) It
criminalizes the offense of Illicit Gain by officials in the public sector, with
penalties ranging from five (5) to ten (10) years), constituting an offense
precedent to money laundering. In the sentence is included, the confiscation
of property not proven to be of legitimate origins, and its confiscation in
favour of the Dominican State, disqualification from holding public office
from two (2) to ten (10) years.
Resolution SIPEN No. 307-10 on Registration of External Auditors.
37
FATF Rec.
Rating
Recommended Actions
It replaces the Resolution 08-02.
This regulation establishes in article 6 that the External Auditors
Firms may not provide external audit services to the AFP nor audit
the Pension funds in cases where their partners have been declared
insolvent, convicted for crimes of an economic nature or of money
laundering, declared legally incapable; or convicted by final and
irrevocable court to sanctions for criminal offences.
Currently, there are five (5) AFP: AFP Popular, AFP Siembra;
AFP Reservas; AFP Scotia Crecer and AFP Romana
18. Shell
banks
19. Other
forms
of
reporting
PC
PC
 There are no penalties applicable 
It is advisable for banks in the Dominican
explicitly to non-observance of the
Republic to undertake systematic review of
prohibition against setting up shell
their correspondent accounts with foreign
banks.
banks, and make certain that these apply
AML/CFT measures, in order to identify
 The Evaluation Commission did not
high risk banks and close accounts with
obtain access to specific information
banks classed as problematic.
attesting to the application by financial
Efficient, proportionate and dissuasive
institutions of specific and effective 
measures to avoid their correspondent
penalties for non-compliance with the ban
accounts being used by shell banks.
on setting up shell banks should be included
in the Regulations for Investments Abroad
and Opening of Cross Border Institutions, or
in some other instrument.

There should be a specific ban, with
appropriate penalties, for maintaining
correspondent links with Shell banks.

Without prejudice to the prohibitions and
penalties that might be established for shell
banks, the financial institutions should
promote self-regulation on the subject in
their own interest and in consideration of
their own risks.
 The only regulated entities which
up to the moment submit cash
transactions reports for amounts equal
to or in excess of $US10,000 or the
equivalent, are the banking
and
exchange institutions under the
supervision of the Superintendency of


A customer is a physical or legal person with whom any kind of
business is carried on. In this regard, knowing your customer entails
knowing with whom any business, either active or passive, is being done.
Art. 41 (1) of Act 72-02 is very clear on the subject. There is certainly
need to broaden the concepts, in order to specifically include aspects
related to corresponding account services, and other details.

Anonymous or fictitious accounts are forbidden (See Art. 41 (1) of Act
72-02). No institution should therefore open accounts with phantom
enterprises, or enterprises that increase the level of risk.

We reiterate that shell banks do no exist in the Dominican Republic; in
order to operate in the country every financial institution must comply
with article 68, a) of the Monetary and Financial Law 183-02.

Through Circular SB No.14/10 of sept. 7/2010, the Superintendency of
Banks established the requirements for correspondent accounts.
The aforementioned Resolution No. R-CNV-2012-01-MV, sub-paragraph g)
of Article 14, prohibits reporting entities in the stock market sector from
continuing correspondent relations with shell banks or securities
intermediaries. It also provides that continued relations must be avoided
with correspondent foreign financial institutions when they permit their
accounts to be used by shell banks or business entities. (Applicable penalty
sub-paragraph f) article 112, law 19-00)
The other reporting institutions (from the 
The FAU is receiving cash transaction reports from the securities
securities and insurance markets) should
sector, and work is being done on the procedures to apply them to the
submit this [CTR] type of report to the
insurance sector. The pensions sector has its own procedures. It should
UAF.
be repeated that the FAU is tasked with revising the Strategic Plan to
encompass all regulated entities, basically the DNFBPs
 The
Superintendence
of
Banks, through Circular No. 016/10 established for receiving cash through a
38
FATF Rec.
Rating
20. Other
NFBP &
secure
transaction
techniques
NC
21. Special
attention
for
higher risk
countries
PC
Recommended Actions
Banks. The Central Bank also reports
window at night (Night Deposit), an alternative procedure for the proper
these to the Superintendency of Banks.
filling of the records of cash transactions (RTE) exceeding national currency
The other regulated entities do not
Equivalent of U.S. $ 10,000.00, according to
the Buying Rate of The
comply with this requirement of
Central Bank.
reporting to the FAU.
 Structured transactions should be
reported directly to the FAU, but in
practice the banking and exchange
institutions submit them to the
Superintendency of Banks, whose
Financial Intelligence Department is
not an FAU. At the date of the visit of
Evaluation Commission (October
2005), the FAU (in existence for just
six months) had not received or
analysed any cash transaction reports,
let alone used one in financing of
terrorism cases, since this is not
provided for in the Act.
 Specific laws and regulations 
Develop specific anti-money laundering  It has already been pointed out that progress continues to be made in the
should be adopted, DNFBPs should be
and Act 72-02 compliance laws and programme for including DNFPBs. The process has admittedly been slow,
supervised and the sanctions regime
regulations for DNFBPs, and, among other but it has not halted.
should be amended to enable it to be
measures, apply adequate supervision to the  The FAU has focused its procedures on what is known as “risk-based
enforced by the Financial Analysis
sectors to which they belong; and amend the supervision”. This means establishing parameters for deciding which
Unit.
regime of sanctions.
sectors and institutions within them may be the most risk-prone, and on this
 The Dominican Republic should 
Pass the Act against Terrorist Financing, basis concentrating supervisory effort on those which show the greatest
adopt and enforce as soon as possible
to enable the DNFBPs who are regulated vulnerability.
the Financing of Terrorism Act.
entities to prevent, detect and recognise this  The Timetable is being revised in the framework of a new strategic plan.
offence.
As soon as it is complete we will send it to the Secretariat.
 The new anti-Terrorism Law No. 267-08 is in force since July 4 of 2008.
This Act criminalises terrorist financing as a serious offence.
 The Tax authorities (Dirección General de Ingresos), by Resolution 6-10
of September 6 2010, established that tax payers will not be allowed to
deduct any costs that are paid in cash above RD$50,000. This measure,
although of a tax nature, is also a disincentive for the use of cash and helps
individualize the beneficiary of such payments.
 In the Stock and Insurance Markets 
Strengthen on-site supervision in  As already mentioned, the Superintendence of Banks, together with the
there are no warning signs concerning
coordination with off-site supervision, in International Monetary Fund, is designing a set of supervisory policies
run of business, and there are no
order to determine the application by the based on on-site and off-site risks. The programme will be complete by the
practical countermeasures when the
banking and exchange institutions of the beginning of 2009. We are at present in the third of four phases. As regards
operations
involve
a
country
Warning
Signals
issued
by
the warning signals, these are contained in the “Guidelines…”, which is
39
FATF Rec.
Rating
considered “high risk”.
Recommended Actions
Superintendency of Banks.
Specific
countermeasures should be applied to cases
in which a country is involved that have
been classed as non-cooperating with
international AML/CFT standards.
structured according to the FATF 40+9 Recommendations.
The aforementioned Resolution No. R-CNV-2012-01-MV, sub-paragraph e)
of Article 12, calls on the reporting entities to take measures toward due
diligence procedures and to give special attention to business relationships
and transactions with persons, financial companies and institutions, from
countries that do not or insufficiently apply the FATF Recommendations.
Sub-paragraph h) of Article 29, charges the Compliance Committee and
Officer with the task of preparing a list of countries that do not or scarcely
comply with the FATF Recommendations, based on what is provided in this
recommendation and in No. 22. It also entrusts the Compliance Officer (subparagraph x) Article 31) with the task of verifying the transactions of
customers in non-collaborating countries.
The Superintendency of Banks, receives every six months,
"Correspondent Banking Reports". Through this Report, the entities
report with which banks they hold correspondent accounts, its
location and the amount they work with. This is to measure the
degree of risk on the basis of Foreign Banks that operate accounts of
local authorities and the volume of its operations.
FATCA Bill.
22.
Foreign
branches &
subsidiarie
s
PC
 Although there are regulations for 
The content of FATF Recommendation
the operation of branches, affiliates,
22 (Measures for Overseas Branches and
agencies and representative offices
Subsidiaries) should be incorporated in the
abroad,
and
for
consolidated
legislation.
supervision, these do not embody the
content of Recommendation 22
(measures
for
branches
and
subsidiaries abroad).

The regulations also do not
include the subject of
prevention of financing of
terrorism.
 There is no Dominican owned bank in any territory or country with
which the Dominican Republic does not have an agreement of
understanding for the purposes of consolidated supervision. In fact, two
inspections have been performed to date. With respect to foreign branches
and subsidiaries, we reiterate that there are clear provisions on shareholder
control of Correspondent Banking by the Financial Intermediaries (See
Regulation on Cross-border Transactions). We admit that in legal terms,
there is nothing that limits the participation of the Financial Groups or
Holdings, in shareholdings in Off-shore Banks, which does not limit the
supervisory capacity in the entities that constitute the group. All matters
related to this have been included in the Bill for the Amendment of Law
183-02 (Monetary and Financial).
40
FATF Rec.
23.
Regulation,
supervision
and
monitoring
Rating
PC

The Evaluation Commission
did not obtain access to
reports
of
consolidated
supervision.

In the securities market and
the
insurance
market,
practically no work is being
done in this area.
 The evaluation mission had access
to only a single specimen or copy of
draft on-sit inspection report. It is
considered that a single specimen is
not sufficiently representative to
permit a conclusive assessment of the
adequacy of inspection.
 There appears to be a lack of
coordination between the Financial
Intelligence Department (off-site work)
of the Superintendency of Banks and
the inspection departments (on-site
work) regarding the issuance, feedback
and follow-up of inspection reports.
 The evaluation mission obtained no
statistics on the on-site ALM/CFT
inspections carried out by the
Superintendency of Banks in the
financial and exchange institutions
under its control.
Recommended Actions
 Pension Fund Administrators (AFP) authorised to operate by SIPEN
must have national presence. Agencies and offices that operate abroad to
provide services to resident Dominican immigrants must also be authorised
by SIPEN (Art. 80. Law 87-01 that creates the Dominican Social Security
System)
The aforementioned Resolution No. R-CNV-2012-01-MV, in its article 13,
provides that in the exercising of their duties, the reporting entities that carry
out activities through one of their national branches or via subsidiaries
abroad and/or delegate their functions in intermediaries or third parties, so as
to attract new business, in addition to the CDD procedures, must establish
measures to ensure access to the customer’s information, including
documentation, ensure that the third parties are regulated and supervised and
that there is compliance with the CDD procedure in accordance with
Recommendations 5 and 10 of the FATF. Article 14 f) stipulates that in the
case of other foreign subsidiaries or branches, authorised to operate within a
recognised jurisdiction, inclusive correspondent relations shall be
maintained with their own parent company or with an affiliate. The
reporting entities must notify the Superintendency of Securities of the
correspondent relations that they establish and must forward to it a copy of
the pertinent agreements or arrangements and their amendments, if any.


The Acts governing the insurance
and securities markets should
include express provisions for
AML/CFT
supervision
and
sanctioning.
Act 183-02, the Monetary and
Finance Act, the Monetary and
Financial
Regulations,
the
Regulations for the Opening and
Operation
of
Financial
Intermediation Institutions and
Representation Offices, should
contain
the
specific
fitness
requirements for Directors and
senior management of banking and
exchange institutions, including
business knowledge and moral
integrity, and should give the
supervisory entity the express power
to remove from such posts persons




The planned amendment, to Law 72-02, broadening the
category of Competent Authorities is expected, so that each
Agency can develop Information and Prevention Units of an
"Institutional" nature in their structures, which in turn will be
the points of contact with the UAF, which is the country’s
Financial Intelligence Unit.
If Articles: 37 Authorization requirements; 38, Corporate
Standards; 39, Participation of Foreign Investment in Financial
Intermediation and Representative Offices, and 80 Criminal
Standards; of Law 183-02, are verified, Monetary and Financial,
it will be understood that the issues of Cabinet are treated.
The Superintendency of Banks issued the "Code of Conduct for
the National Financial System" which is still in force was issued
at the end of the 90’s. In addition, the Monetary Board issued a
Resolution for Corporate Governance.
The Law against Terrorism has been approved and enacted with Law
No. 267-08, dated July 4, 2008. This criminalizes the Financing of
Terrorism as a Serious Crime (Art. 25). The Minimum Penalty is
41
FATF Rec.
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Recommended Actions
who do not meet these standards.
 Among the fitness requirements for
directors and senior management of

A code of fitness and conduct for
regulated entities (for granting of
shareholders,
Directors
and
licences), the legislation contains no
managers of financial, exchange,
express requirement for such officers
stock
market
and
insurance
to have knowledge of the business,
institutions should be issued.
which would also entail knowledge of

Acts 183-02, 146-02 and 19-2000
the risks inherent in it, including ML
should include the power to revoke,
and FT.
restrict or suspend the respective
 Institutions in the Insurance and
operating licences for institutions
Stock Markets, and their respective
under the supervision of the
Superintendencies, are yet to develop
Superintendency
of
Banks,
AML/CFT prevention, monitoring and
Insurance
and
Securities
supervision measures.
respectively, when these are
discovered to be controlled by
 Financing of Terrorism is not
organised crime.
criminalised.
The concept of “moral solvency” of
 The relevant legislation do not 
shareholders and directors should be further
include the power to revoke, restrict or
developed in Act 19-2000, the Securities
suspend the respective operating
Market Act and Act 146-02, the Insurance
licences for institutions under the
and Guarantees Act.
supervision of the Superintendency of
Banks, Insurance and Securities 
Legislation
against
Financing
of
respectively,
when
these
are
Terrorism needs to be introduced to more
discovered to be controlled by
solid legal grounds, other than “best
organised crime.
practice”, to the current internal control
requirements in this area.
 Act 19-2000, the Securities Market
Act and Act 146-02, the Insurance and
Guarantees Act, contain only general
provisions
concerning
“moral
solvency” of shareholders and
directors and so further development
of this aspect is required.
 The Superintendencies of Insurance
and Securities carry out no specific
AML/CFT supervision





greater than or equal to three (03) years, so it falls into the category of
Serious Crime as stipulated in the Dominican Criminal Code. All
reporting entities have the responsibility to report operations which
they believe are suspicious, legally, as was established before as good
practice.
The Superintendence of Values has the option to suspend or terminate
the activities of one of a sector obligated (Art. 112 and 116 of Law 1900 of the Values
Market and its implementing regulations,
Decree No. 729-04, Articles. 171 and 172).
Resolution 02-02 of SIPEN provides information required on
shareholders of AFPs which include, in addition to general information,
a declaration containing equity links and/or professional links existing
with other entities, as well as the interest of direct relatives in
companies whenever exceeding 3%. In case of companies, financial
statements, list of shareholders with relevant interest are required, as
well as equity links and economic and financial projection of the firm
for the first 10 years.
Resolution 316-05 issued by SIPEN enforces AFPs to submit a copy of
all ordinary and extraordinary shareholders meetings duly certified and
recorded within a term not exceeding 10 working days after
accomplishment and to immediately report change of shareholders and
managers which strengthens corporate control measures.
The aforementioned Resolution No. R-CNV-2012-01-MV, (article 46),
creates in the SIV, a unit for the internal technical and operating
conditions for complying with the Law on Money Laundering and with
the provisions of the Law on Terrorism, responsible for the prevention
and control of money laundering and financing of terrorism, through
which the reporting entities will be supervised with respect to the
obligations established in these regulations.
The INPOSDOM (state Postal services) works on a National Project for
the Reform of the Postal Sector, which includes among its main actions
the reform of the legal framework of the sector and the establishment of a
regulating Body, whose functions will include the development and
monitoring of standards and regulations related to postal security and the
anti money laundering system.
Law 183, in its articles 42 to 48, indicates that the Superintendent of
Banks sanctions financial and exchange intermediaries that are being
controlled by organized crime.
42
FATF Rec.
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Recommended Actions
-Off-Site Monitoring: We received the "Politically Exposed Persons
Reports". This is a monthly report, through which institutions inform
of the PEP's that have done business, or have operated accounts.
24. DNFBP
regulation,
supervision
and
monitoring
NC
 There is no monitoring of the
financial behaviour of casinos nor
supervision of their AML compliance.
 There was nothing to indicate that
the DNFPBs are subject to a broad
regime of supervision that would
ensure their effective implementation
of AML/CFT measures, since no
documentary evidence was obtained
indicating any attempt to develop
mechanisms to pool the efforts of the
FAU and the Ministry of Finance
(Casinos Commission) in the interest
of collaboration for verification of
compliance by Casinos with antimoney laundering regulations.
 On the same lines, as regards the
scope of the regulatory and
supervisory regime, there was also
nothing to show that any approach was
being made, where needed, to the
entities responsible for authorising
DNFPBs.





Implement legal mechanisms for
collaboration
in
AML
compliance
verification between the FAU and the
bodies responsible for licensing some
DNFBPs.
Failing this, the FAU should develop
programmes, plans or working timetables,
supported with the necessary resources, for
identification of DNFBPs and their
incorporation as regulated entities.
Issue the necessary regulations for proper
control of the DNFBPs, since such
regulations must be adapted to the type of
operations they carry out.
There is need for more monitoring of and
supervision of the financial behaviour of
casinos in order for them to comply with
AML measures
There is need for more poling of efforts
between the FAU and the Ministry of
Finance
(Casino
Commission),
on
verification and compliance with the antimoney laundering laws and regulations by
The Superintendency of banks continues forging a risk-based supervision
methodology. Currently we are reviewing the procedures for On-site
monitoring, in order to make them up to date with the new standards.
Additionally been the matrix profiles of risk factors (customers, products,
geographical and currency) have been redeveloped

As already noted, the FAU is in the process of revising a Strategic Plan,
which will make it possible to require DNFBPs to report suspicious
transactions and put into effect preventive measures.

The Ministry of Finance is reorganising its Casinos Department to
implement an efficient supervision policy. It has contacted the FAU
and the Superintendency of Banks for technical support.
Description of the courses conducted by the UAF during the period
January to August 2013 to the DNFBPs including the reporting
entities of the Financial Sector (Insurance and Credit Unions) which
were left out of the process of training and supervision by their State
regulators

04/01/2013 Santo Domingo Credit Union Bohechío lounge of
the Santo Domingo Hotel Training workshop on Law 72-02 and
Prevention of Money - Laundering.

12/01/2013 Santiago Rodriguez Credit Union Conferences Hall
of Headquarters of the Mamoncito Credit Union. Training
43
FATF Rec.
Rating
 There is a need for specific
regulation concerning the activities of
casinos and other DNFBPs.
 In view of the lack of anti-terrorist
financing laws or regulations, there is
non-compliance in this area.

Nor was there any evidence
of any plan to broaden in the
short term the regime of
regulation and supervision of
the DNFPBs, since at the
time of the evaluation
mission’s visit, that FAU
showed
no
project,
programme
or
working
timetable to indicate how
DNFPBs are to be brought
under the umbrella of
regulated entities, in order to
acquaint them with their
obligations under Act 72-02.
Recommended Actions
the Casinos.
workshop on Law 72-02 and Prevention of Money laundering.

17/01/2013 Casinos Santo Domingo Ministry of Finance
Continuity of the outreach process of Both institutions (UAFMinistry of Finance) to train the Casinos on Law 72-02 and
Prevention of the Money laundering

19/01/2013 Santiago Credit Union Headquarters of the Santiago
Medical Credit Union Training Workshop on Law 72-02 and
Prevention of Money laundering.

Medical Credit Union 2nd Training Workshop on Law 72-02 and
Prevention of Money laundering

07/02/2013 Santo Domingo Credit Union Headquarters of
Cooperativa Credit Union Training Workshop on Law 72-02
and prevention of money laundering

10/02/2013 Santiago Credit Union Headquarters of the San Jose
Credit Union Training workshop on law 72-02 and Prevention
of money laundering of assets. Explanation of want the UAF is
and how correctly fill out the STR and SAR report forms.
44
FATF Rec.
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Recommended Actions

15/02/2013 Santo Domingo Insurers Conference Room of the
Insurance and Reinsurance Chamber of the Dominican Republic
INC. (CADOAR) Prevention of Money laundering in the
Dominican Republic’s Insurance Sector.

19/02/2013 Importation and sale of new vehicles Distrito
Nacional Main Hall of Vehicle Dealers and Makers Association
(ACOFAVE) Training workshop on law 72-02 and prevention
of money laundering. Explanation what is the UAF and how to
correctly fill out the STR and SAR report forms.

21/02/2013 Casinos Santo Domingo Act Hall of the Ministry of
Finance Training workshop on law 72-02 and prevention of
money laundering

06/03/2013 Santo Domingo Realtors Conference Hall of the
National Drug Council Measures for the prevention of money
laundering in real estate Sector and Law 72-02 on money
laundering.

15/03/2013 Information of identification of reporting entities.
Santo Domingo Mapas GAAR S.R.L Meeting with Mr. Cristian
Mejía G. President of Mapas GAAR S.R.L.; where the
45
FATF Rec.
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Recommended Actions
generation of information on reporting entities was requested of
him.

10/04/2013 Casinos Santo Domingo Este Hotel Aurora
Measures of prevention of money laundering and Law 72-02

13/04/2013 Cooperative Las Matas de Farfan Credit Union Club
of the Coopcentral of the Matas of Farfan Training workshop on
Law 72-02 and prevention of money laundering.

11/05/2013 Dajabón Credit Union Office of the Coopbueno
Credit Union Training workshop on law 72-02 and the Role and
legal implications of the reporting entities.

22/05/2013 Permits for Construction Santo Domingo Urban
Planning of the Town Hall of Distrito Nacional. Visit to the
Director of the Department of Urban Planning of City Hall from
the D.N., in order to request the data base for the permits
granted by the City Council of the DN for the construction of
towers and buildings in this district.
46
FATF Rec.
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Recommended Actions

05/06/2013 Lawyers Santo Domingo Act Hall of the National
Drug Council. Workshop on Law 72-02 on money laundering
and "The role of the Lawyer in the face of Drug Prevention”

11/06/2013 Real Estate Santo Domingo Auditorium of the
Pedro Mir Charla Library –Conference "Money laundering in
Real Estate Sector: Legal implications of the Reporting Entities"

13/06/2013 Lawyers Santo Domingo Headquarters of Lawyers
Bar of the Dominican Republic. Meeting with the President of
the Lawyers’ Bar Dr. Jose Fernando Perez Volquez, to
encourage participation in the Draft Court Policy for the
Treatment of Drug addicts under Judicial Supervision.

13/06/2013 Notary Santo Domingo Headquarters of the Notaries
Bar the Dominican Republic. Meeting with the President of the
Notaries Association Dr. Rodolfo Perez Mota, to encourage
participation in the Draft Court Policy for the Treatment of Drug
addicts under Judicial Supervision

Planning of the Town Hall of Distrito Nacional. Training
workshop for the Urban Planning Directorate of the Town Hall
of the National District and its role in the Fight against Money
47
FATF Rec.
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Recommended Actions
laundering and compliance with Law 72-02

03/07/2013 Lawyers Distrito Nacional Headquarters of the
Lawyers Bar of the Dominican Republic Training workshop on
Law 72-02 and the Role of reporting entities (Lawyers)

06/07/2013 Las Matas de Farfan Credit Union Club of the
Coopcentral of the Matas of Farfan Training workshop for
Credit Unions and reinforcement of the compliance officers

27/07/2013 Real estate Santiago de los Caballeros Hotel Aloha
Sol Training workshop for the Association of Real Estate
Companies (AEI) and reinforcement of compliance officers

01/08/2013 NGOs Distrito Nacional Alliance of NGOs meeting
with Lic. Addys Then, Executive Director of the Alliance of
NGOs, with the aim of following up on the training given to
NGOs and establish communication channels between the UAF
and this sector.

08/02/2013 Reporting Entities from different areas. Distrito
Nacional Conference Hall of the National Drug Council
Training workshop on the framework of the Diplomat in Drug
prevention: Law and Public Safety and Law 72-02.
48
FATF Rec.
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
06/08/2013 NGO Distrito Nacional Alliance of NGO Inspection
Visit to the Alliance of NGOs and Follow-up of non-financial
reporting entities that have been trained by the UAF.

27/08/2013 Jewelry Stores Distrito Nacional Meeting Room of
Financial Analysis Unit Training workshop to the Dominican
Jewelers Association (ASODOJO) on Law 72-02 and the
prevention of money laundering
02 – 06 September, 2013, Training workshop on prevention of the
money laundering and financing of terrorism in the DNFBPs and
certain financial institutions conducted by the CFATF, in the
facilities of the DNCD. International Speakers Gonzalo Gonzales
and Andrés Martínez Calvo.
During the period May 2013 - March 2014 834 persons were
trained from the following Reporting Entities.
1- Reporting Entity : Cooperativa Bueno
Subject: Prevention of money laundering and financing of
terrorism
Place: Local del Cooperativa Bueno
Province: Dajabón
Date 11/05/2013
Participant: 32
2- Reporting Entity: Lawyers - Notaries
Subject: The role of the Lawyer in Drug Prevention
Place: Salón de Actos del Consejo nacional de Drogas
Province: Distrito Nacional
Date 05/06/2013
Participants: 86
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3- Reporting Entity: Lawyers
Subject: Money Laundering in the Real Estate sector: Legal
Implications for the Reporting Entities
Place: Auditorium of the Pedro Mir Library, Universidad
Autónoma de Santo Domingo
Date 11/06/2013
Participants: 42
4- Reporting Entity: Dirección de Planeamiento Urbano del
Ayuntamiento del Distrito Nacional Directorate of urban
planning of the City Council of the District National
terrorism
Place: the Financial Analysis Unit Conference Hall
Date 19/06/2013
Participants: 25
5- Reporting Entity: Lawyers
Subject: Prevención del Lavado de Activos y el Rol de los
Sujetos Obligados (Abogados) Prevention of money laundering
and the role of the obligated entities (lawyers)
Place: salón de conferencias del Colegio de Abogados the Bar
Association Conference
Date 03/07/2013
Participants: 150
6- Reporting Entity: Cooperativa Central de las Matas de
Farfán
terrorism
Place: Club de la Coopcentral de las Matas de Farfán
Province: San Juan de la Maguana
Date 06/07/2013
Participants: 56
50
FATF Rec.
Rating
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7- Reporting Entity: Association of Real Estate Companies
(AEI), Santiago Chapter
terrorism
Place: Hotel Aloha Sol
Province: Santiago de Los Caballeros
Date 27/07/2013
Participants: 56
8- Reporting Entity: Abogados
terrorism
Place: Conference Hall for the National Drug Council
Date 02/08/2013
Participants: 58
9- Reporting Entity: Dominican Association of Jewellers
(ASODOJO)
terrorism
Place: Conference Hall The Financial Analysis Unit
Date 27/08/2013
Participants: 9
10- Reporting Entity: Profesionales Liberales y Militares
Subject: Drug trafficking, related offences and its relationship
with the security
Place: Escuela de Graduados de Altos Estudios Estratégicos
(AGAE) Ministerio de las Fuerzas Armadas
Date 26/09/2013
Participants: 34
11- Reporting Entity: Estudiantes de Derecho Utesa
terrorism
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Place: Auditorio de la Universidad Utesa
Date 24/10/2013
Participants: 53
12- Reporting Entity: Abogados y Notarios
terrorism
Place: Universidad Unicaribe
Date 12/11/2013
Participants: 103
13- Reporting Entity: Puestos de Bolsa de Productos
Agroempresarial de la RD.
terrorism
Place: Auditorio de la Junta Agroempresarial de la República
Dominicana (JARD)
Date 05/03/2014
Participants: 43
14- Reporting Entity: Asociación de Puesto de Bola de Valores
terrorism
Place: Salón Caonabo del Hotel Magna 360
Date 08/03/2014
Participants: 65
15- Reporting Entity: Cooperativa de Servicios (COOPADEPE)
terrorism
Place: Salón de conferencias de la Cooperativa de Servicios
(COOPADEPE
Province: Moca, Espaillat
Date 15/03/2014
52
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Recommended Actions

Participants: 22
 So far insurance and stock broking 
The Superintendency of Banks and the 
The General Plan includes a provision for STRs to be transmitted
firms have not begun to work on
Financial Analysis Unit should issue
electronically, encrypted. The system as regards the Superintendency of
AML/CFT,
nor
have
their
guidelines to strengthen the quality,
Banks and the FAU is already 90% electronic.
Superintendencies
issued
any
confidentiality and security measures for 
The issue of feedback has been taken into consideration. Arrangements
directives.
suspicious transaction reports (STRs) in
are in train, in collaboration with the AML Unit of the Procuraduría
order to achieve improved analysis and
 There is no Financing of Terrorism
General de la República for achievement of this very important objective
technical reports. The FAU should have the The UAF on the 26th July, 2013 establishes the Inter institutional Counterlegislation.
power to reject STRs that do not meet the terrorism work group in order to strengthen the inter institutional work
 The Superintendencies of Insurance
standards required for their presentation.
group against money laundering which exists since 2007 in the Attorney
and Securities have not issued any
Regulated entities, the FAU and the General Office, in which the institutions that deal with ML/FT can exchange
AML/CFT guidelines for their 
Superintendencies of Banks, Securities and information and can provide feedback to one another
supervised sectors.
Insurance should take cognizance of
 There is no feedback between the
suspicious transaction reports that are sent
competent authorities and the reporting
to the judicial authorities, and of the results
sectors.
of this. In general there should be greater
 There are no specific provisions to
feedback on the subject of AML/CFT.
govern the activity of DNFBPs.

It is recommended that the FAU and the
 There are no relevant laws and
Superintendencies of Banks, Securities and
regulations to cover DNFBPs, since
Insurance issue specific instructions on
such regulations must be in keeping
measures for security, quality and
with the operations they perform.
confidentiality of suspicious transaction
reports and follow up compliance with these
measures.

Permanent feedback mechanisms should
be defined and implemented among the
competent authorities and the reporting
sectors, taking into account, above all, the
level of risks they face and the time limit for
recording the information and making it
available
Institutional and other measures
25.
Guidelines
&
Feedback
PC
26.
FIU
PC
The
 There is a need for legislation to
broaden the functions and duties of the
FAU and for precision regarding the
grounds for removal of the Director of
the Unit. There is no supplementary
legislation to Act 72-02to widen the
powers of the FAU. Statistics on
movement of cash connected to money

For this reason the process of transition 
The process is now complete. There are no overlaps, since STRs are
of the Department of Financial Intelligence
not analysed in the Superintendency of Banks. This is the exclusive
of the Superintendency of Banks to the
province of the FAU, which is the central information unit.
Financial Analysis Unit under the 
As soon as the FAU has moved to new premises which provide all the
committee must be transparent and very
conditi8ons necessary for quality standards, the Secretariat j of the
rapid, bearing in mind always not only the
Egmont Group will be invited to reconsider the re-admission of the
processes stipulated by the law but also the
country.
international undertakings, i.e. those which 
In the amendment to Act 72-02 and consequent amendments to
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FATF Rec.
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laundering in the country; publication
it has at present with the Egmont Group, so
of
typologies:
standards
for
that at no point of the process will
appointment of staff; ability to share
compliance with these undertakings be
information with counterpart agencies
neglected. Special attention should be given
and sign memoranda of understanding,
to avoiding duplication of functions. This is
etc. For these reasons and because at
why it is important that the transition
the time of the evaluation the Unit had
process be an active one.
only recently been established, it is not 
This transition should be more dynamic
possible for the mission to assess its
and better structured. It is important that
degree of operational autonomy.
there should be a plan of action, and a
 The Dominican Republic has as yet
timetable specifying dates and concrete
no law against financing of terrorism,
plans for each aspect of this transition, so
so the Financial Analysis Unit is not
that the requirements of the law may be met
legally
empowered
to
receive
as soon as possible, and overlap of functions
suspicious operation reports related to
avoided which might compromise the
financing of terrorism.
membership of the country in the Egmont
Group, and cause confusion among the
 The
Financial
Intelligence
supervised entities and national and
Department of the SB analyses and
international authorities.
circulates information revealed in
STRs and other relevant information 
Consider putting into effect as soon as
on suspected ML activity in the sectors
possible the supervisory bodies for sectors
regulated by the SB (banks, remittance
which still do not have a regulatory
firms and Bureaux de Change). The
authority to supervise them and sanction any
Act is quite broad as regards the
non-compliance with prevention policies.
entities regulated, and therefore the
The supervision and control bodies must be
analyses carried out up to the date of
expressly empowered to inspect the
the evaluation omit a large segment of
procedures and control mechanisms internal
institutions legally considered to be
to each of the legal persons or the
regulated entities. This situation has a
professionals subject to its supervision, in
negative effect on the work of a
order to verify due compliance. This will
Financial Intelligence Unit.
enable the FAU to carry out its functions in
the best possible way. These bodies must
 Presently, the FID of the
also be empowered to collaborate with the
Superintendency of Banks receives the
FAU in the exercise of its responsibilities
STR’s of institutions under its
and to provide it with the information at
supervision and it sends them to the
their disposal to enable the unit to have
FAU and the DNCD. The DNCD
access to, examine, and analyse the
therefore may be receiving the same
information coming from these sectors.
reports in two occasions. Duplicity in
functions and resources should be 
It would be advisable for the Financial
avoided.
Analysis Unit to have legislation broadening
its functions and duties and detailing
 No meetings are held for the
possible grounds for removal of the Director
specific purpose of discussing the




Regulation 20-03, consideration will be given to causes for removal of the
Director of the FAU, requirements for keeping statistical records of MLrelated cash movements within the country, publication of typologies,
staff hiring standards, and the right to share information with counterpart
agencies and sign memoranda of understanding.
With regard to modifications to Law 72-02, regarding Money
Laundering and regulations 19-03 and 20 – 03, the Dominican Republic
has a draft Bill ready. This has not been presented to the Legislative
Chambers, because of and as a consequence of new 40 + 9
Recommendations being issued in 2012, we are updating the project. In
these modifications, we will include reasons to remove the director.
With regard to the automation of the receipt of information, a solution
is being developed with the Superintendent of Banks for the online
reception of reports for financial transactions. Although at the time of the
submission of this report, no Report is pending digitalization or filing,
under strict security measures.
The International Financial Zone. We have prepared a project to
modify Law 480 – 08 regulating the Financial International Zone, namely
pertaining a single analysis unit being reporting cash transactions and
ROS, being that, the Financial Analysis Unit and the National Council
against Money Laundering, created by Law 72 – 02.
The grounds for removal of the UAF Director are found in the
draft amendment of Law 72-02.
54
FATF Rec.
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27.
Law
enforcemen
t
authorities
LC
28. Powers
of
competent
authorities
PC
Recommended Actions
quality of suspicious operation reports
of the Unit; a duty to keep statistics of
or to provide feedback to the regulated
movement of cash in the country related to
entities.
money laundering, and publication of
typologies; standards for staff recruitment;
 It is essential for reports to be
powers to share information with
published periodically containing
counterpart institutions and to sign
statistics, typologies and trends.
Memoranda of Understanding, etc
 The FAU at present time still has no
automated systems for receiving FIU
information
and
which
should
guarantee a higher level of security.
 There is no Terrorist Financing 
The Dominican Republic has joint task  The Anti-Terrorism Law has been passed and promulgated under No.
legislation and related felonies legally
forces to carry out investigations 267-08, dated July 4, 2008. This criminalises the Financing of Terrorism as
cannot be investigated.
adequately. However, it is imperative that a Serious Offence (Article 25). The Minimum Sentence is More than or
the country criminalises Financing of Equal to Three (3) years, thus it falls under the category of Serious
Terrorism in order to be able to carry out Offences, according to the provisions of the Dominican Penal Code. All
investigations and lend international Reporting Entities are responsible for reporting operations deemed
assistance in this area
suspicious, now legally, since it was previously established, but as a good
practice.
 The Dominican Republic has joint
task forces to carry out these
investigations adequately. However, it
is essential that financing of terrorism
be criminalised for investigations and
international cooperation in this field
to be possible.

It is imperative that the country
criminalises Financing of Terrorism in order
to be able to carry out investigations and
lend international assistance in this area.
 Here, as in other instances, it is reiterated the approval of the AntiTerrorism Law No. 267 of July 8, 2008, which in its Article 25
criminalises the Financing of Terrorism as a serious offence.
Constitution of the Dominican Republic, article 44, paragraph 3 part
infine

the Secrecy of communication by telegraph, telephone, wire,
electronic, telematics , or that established by any other medium,
except those authorized by judges or competent authority, in
accordance with the law is inviolable;
Palermo Convention 2000, article 12.
Confiscation and seizure
For the purposes of this article and that of article 13 of this
Convention, each Party State shall empower its courts or other
competent authorities to order the presentation or seizure of Bank,
financial or commercial records. The State Parties cannot refuse to
apply the provisions of this paragraph under the banking secrecy
LAW 72-02
55
FATF Rec.
Rating
Recommended Actions
CHAPTER I
29.
Supervisor
s
PC
 The Superintendency of Banks is
the only supervising body that carries
out AML/CFT inspections, which it
began to do in 2004 The Evaluation
Commission did not obtain access to
inspection reports.
 The Insurance and Securities
Superintendencies have done no work
on this subject.
 The Superintendency of Banks has
a shortage of human resources in its
inspection department and needs to
supply this entity with feedback of
work done by its DIF on AML/CFT
issues.
 There is lack of Supervision of the
SB on the Central Bank on AML/CFT
issues.
 There is lack of supervision on
financial institutions if they, as part of
their internal AML/CFT policies,
procedures
and
controls,
are
developing matrices and maps of risks


 Competent authorities: Competent Judicial Authority is understood to be
the courts of the judicial order and the public prosecutor's Office;
likewise, for the purposes of this law, the competent authority is
considered to be the one responsible for supervising and overseeing
compliance by the reporting entities of the provisions laid down in this
law, the Superintendency of Banks, the Internal Revenue General
Directorate and the National Drug Control Directorate
 As already mentioned, the Superintendency of Banks, together with the
International Monetary Fund, is designing a set of supervisory policies based
on on-site and off-site risks. The programme will be complete by the
beginning of 2009. We are at present in the third of four phases. As regards
warning signals, these are contained in the “Guidelines…”, which is
structured according to the FATF 40+9 Recommendations
 The Central Bank is a Regulated Entity, since it carries on open market
business. It is subject to supervision by the Superintendency of Banks and is
therefore included in the supervision plans. The Superintendency of Banks
has the compliance profile of the Central Bank on the basis of off-site
supervision
 The Superintendence of Banks is
in the
process of revising
the Manual on Risk Based
Supervision AML / CFT (Extra-Situ and In
Situ). Supervision Departments I and II, are
efficiently implementing the Manual,
however the review is intended
to make this a more appropriate document according to the circumstances.
The
Superintendence of
Banks makes monitoring and
evaluation
of the regulated entities under its supervision, in order to reduce possible
risks of AML / CFT. It has distributed in baskets or groups, financial an
exchange entities, and assigning them specialists with responsibility
for monitoring, also have introduced new types of analysis which allows to
manage appropriate variables in terms
of geographical areas, currencies, volumes, among others.
It is recommended that the manual of
verification and inspection procedures of the
Superintendency of Banks should be
updated in accordance with Act 72-02,
because this manual focuses on the
provisions of Act 50-88

The Superintendency of Banks should
carry out AML supervision in the Central
Bank.

The Acts governing the insurance and
securities markets should include express
provisions for AML/CFT supervision.

check, as part of its work of risk-based
supervision, that the financial institutions, as
part of their internal AML/CFT policies,
procedures and controls, are developing
matrices and maps of risks, taking into
consideration various factors such as the
institution itself, the customer, the product
or service, the distribution channel, the
jurisdiction, for the purpose not only of
complying with the country’s laws, but also
for management, monitoring and reduction
of risk.
 In accordance with the Law, AFPs are subject to supervision. Provide all
information requested by SIPEN. Information requirements are in addition
to the remission obligation of annual financial statements certified by
external auditors. The Superintendence may accomplish any direct action
related with verification, inspection or vigilance of regulated entities.
Regulated entities are enforced to provide all cooperation to the
Superintendence, its officers or employees in order to facilitate tasks
entrusted by Law. Such supervision task is prevented, whether through on
56
FATF Rec.
Rating
Recommended Actions
site inspections, vigilance or cabinet. (Articles 118, 119, 120 and 121,
Decree 969-02).
The aforementioned Resolution No. R-CNV-2012-01-MV establishes among
the functions of the Unit for the Prevention and Control of Money
Laundering and Financing of Terrorism of the SIV (Article 47), carrying out
inspections on the reporting entities and verify their compliance with the
Programmes for the Prevention and Control of Money Laundering and
Financing of Terrorism.
30.
Resources,
integrity
and
training
PC
 There is no adequate indication
(study) to point out the real staff
requirements and requirements for
equipment and training of the FAU to
enable it to fully comply with its
duties.
 As regards technical resources the
FAU has no software to enable it to
carry out its analyses and protect the
information it handles. Up to the time
of the visit Excel spreadsheets were
used. The FAU needs premises that
will enable it to protect the security of
the information it handles and that of
its employees.
 The DNCD and its prosecutors
should have premises that enable the
information they handle to be
protected and to provide security for
their staff.
 Increase in the human, economic,
and technical resources of the law
enforcement agencies must be another
priority of the country in combating
these scourges.
 Training should be increased in all
law enforcement sectors and extended
to cover financing of terrorism.
 There is need for developing and
increasing joint training programmes
for prosecutors and judges.







A study should be carried out in the
regulated sectors to indicate the real staff
requirements
and
requirements
for
instrumentation and training of the FAU to
enable it to fully comply with its duties.
The UAF must have technical resources
to enable it to receive information in
electronic form and carry out its analysis
All the law enforcement authorities
insisted on the need to strengthen their
human, economic and technical resources
Training should be increased in all law
enforcement sectors and extended to cover
financing of terrorism. The personnel of the
joint forces should receive joint training and
the joint training for judges and prosecutors
should be increased.
Joint
training
programmes
for
prosecutors and judges should be developed.
strengthen its inspection departments and
ensure feedback between the work done by
these departments and the work of the
Financial Intelligence Department
The Ministry of Finance, under which the
Superintendency of Insurance falls, and the
National
Anti-Money
Laundering
Committee should take urgent measures to
enable the Superintendency of Insurance to
begin to apply efficient AML/CFT measures
in the institutions it supervises, and this
 The National Anti-Money Laundering Committee is considering
restructuring the FAU, to increase its efficiency. This would entail greater
resources and support for all its activities. The acquisition of a building to
house it, the reassessment of its staff and the insistence that its work be
planned and based on clear objectives are all reliable indications of the
Committee’s commitment.
 As mentioned, the new scheme, implemented by the Superintendency of
Banks in cooperation with the International Monetary Fund, for supervision
policies based on on-site and off-site risk presupposes the strengthening of
the Inspectors. This programme will be complete early in 2009. It is at
present at the third of its four phases. Regarding warning signals, these are
contained in the “Guidelines…”, which is structured according to the FATF
40+9 Recommendations.
 The Superintendence of Banks, maintains a Technical Training
Program on AML / CFT and Analysts. The 90% of technicians in the
field of AML / CFT have international certification. For 2011, it
is
projected to certify all staff
 UAF hired new personnel for the analysis area. General Attorney’s
Office of the Republic, Drugs Control National Direction maintain
permanent training programs for their technicians.
 Just as the Ministry of the Attorney General, the National Police, the
National Directorate for Drug Control and the other many institutions
involved in the anti-money laundering system at the national level, the FAU
is in the process of acquiring and installing Statistical Analysis Software
(SAS), where it will consolidate all information from the various entities,
which will facilitate the flow of information among the different agencies
with information that is relevant to the investigation. In 2011, the training
and distribution programme for Law 72-02 was executed across the national
territory, through a sizeable number of activities, workshops, discussions
and panels regarding organised crime, money laundering and financing of
57
FATF Rec.
Rating
 The Securities and Insurance
Superintendencies,
and
their
supervised institutions, devote no
resources at all, human, financial or
technical, to prevention of money
laundering and financing of terrorism.
Recommended Actions
should include the allocation of adequate terrorism, as well as the publication of several works related to the
and sufficient resources (human, financial aforementioned topics. There are joint training programmes for judges and
and technical) specifically related to attorneys general, implemented by the National Council of the Judiciary and
AML/CFT for the Superintendencies of the Ministry of the Attorney General.
Insurance and Securities.

Better and more specialised training in The INPOSDOM (State postal services) has participated in numerous
the area of prevention of financing of training sessions delivered by the Comptroller General of the Republic, the
terrorism is required for supervisors and CFATF and the Postal Union of the Americas. As part of its programme of
supervised entities in the financial markets institutional training, it has delivered seven workshops on the
in general, and this should include implementation of the Money Order Services, emphasizing the security
identification of Warning Signals and processes for electronic transfers and the regulations for the prevention of
patterns of conduct for the preparation of money laundering.
STRs.
Description of the courses conducted by the UAF during the period
January to August 2013 to the DNFBPs including the reporting
entities of the Financial Sector (Insurance and Credit Unions) which
were left out of the process of training and supervision by their State
regulators

04/01/2013 Santo Domingo Credit Union Bohechío lounge of
the Santo Domingo Hotel Training workshop on Law 72-02 and
Prevention of Money - Laundering.

12/01/2013 Santiago Rodriguez Credit Union Conferences Hall
of Headquarters of the Mamoncito Credit Union. Training
workshop on Law 72-02 and Prevention of Money laundering.

17/01/2013 Casinos Santo Domingo Ministry of Finance
Continuity of the outreach process of Both institutions (UAFMinistry of Finance) to train the Casinos on Law 72-02 and
Prevention of the Money laundering
58
FATF Rec.
Rating
Recommended Actions

Medical Credit Union Training Workshop on Law 72-02 and
Prevention of Money laundering.

Medical Credit Union 2nd Training Workshop on Law 72-02 and
Prevention of Money laundering

07/02/2013 Santo Domingo Credit Union Headquarters of
Cooperativa Credit Union Training Workshop on Law 72-02
and prevention of money laundering

10/02/2013 Santiago Credit Union Headquarters of the San Jose
Credit Union Training workshop on law 72-02 and Prevention
of money laundering of assets. Explanation of want the UAF is
and how correctly fill out the STR and SAR report forms.

15/02/2013 Santo Domingo Insurers Conference Room of the
Insurance and Reinsurance Chamber of the Dominican Republic
INC. (CADOAR) Prevention of Money laundering in the
Dominican Republic’s Insurance Sector.

19/02/2013 Importation and sale of new vehicles Distrito
59
FATF Rec.
Rating
Recommended Actions
Nacional Main Hall of Vehicle Dealers and Makers Association
(ACOFAVE) Training workshop on law 72-02 and prevention
of money laundering. Explanation what is the UAF and how to
correctly fill out the STR and SAR report forms.

21/02/2013 Casinos Santo Domingo Act Hall of the Ministry of
Finance Training workshop on law 72-02 and prevention of
money laundering

06/03/2013 Santo Domingo Realtors Conference Hall of the
National Drug Council Measures for the prevention of money
laundering in real estate Sector and Law 72-02 on money
laundering.

15/03/2013 Information of identification of reporting entities.
Santo Domingo Mapas GAAR S.R.L Meeting with Mr. Cristian
Mejía G. President of Mapas GAAR S.R.L.; where the
generation of information on reporting entities was requested of
him.

10/04/2013 Casinos Santo Domingo Este Hotel Aurora
Measures of prevention of money laundering and Law 72-02
60
FATF Rec.
Rating
Recommended Actions

13/04/2013 Cooperative Las Matas de Farfan Credit Union Club
of the Coopcentral of the Matas of Farfan Training workshop on
Law 72-02 and prevention of money laundering.

11/05/2013 Dajabón Credit Union Office of the Coopbueno
Credit Union Training workshop on law 72-02 and the Role and
legal implications of the reporting entities.

Planning of the Town Hall of Distrito Nacional. Visit to the
Director of the Department of Urban Planning of City Hall from
the D.N., in order to request the data base for the permits
granted by the City Council of the DN for the construction of
towers and buildings in this district.

05/06/2013 Lawyers Santo Domingo Act Hall of the National
Drug Council. Workshop on Law 72-02 on money laundering
and "The role of the Lawyer in the face of Drug Prevention”

11/06/2013 Real Estate Santo Domingo Auditorium of the
Pedro Mir Charla Library –Conference "Money laundering in
Real Estate Sector: Legal implications of the Reporting Entities"
61
FATF Rec.
Rating
Recommended Actions

13/06/2013 Lawyers Santo Domingo Headquarters of Lawyers
Bar of the Dominican Republic. Meeting with the President of
the Lawyers’ Bar Dr. Jose Fernando Perez Volquez, to
encourage participation in the Draft Court Policy for the
Treatment of Drug addicts under Judicial Supervision.

13/06/2013 Notary Santo Domingo Headquarters of the Notaries
Bar the Dominican Republic. Meeting with the President of the
Notaries Association Dr. Rodolfo Perez Mota, to encourage
participation in the Draft Court Policy for the Treatment of Drug
addicts under Judicial Supervision

Planning of the Town Hall of Distrito Nacional. Training
workshop for the Urban Planning Directorate of the Town Hall
of the National District and its role in the Fight against Money
laundering and compliance with Law 72-02

03/07/2013 Lawyers Distrito Nacional Headquarters of the
Lawyers Bar of the Dominican Republic Training workshop on
Law 72-02 and the Role of reporting entities (Lawyers)
62
FATF Rec.
Rating
Recommended Actions

06/07/2013 Las Matas de Farfan Credit Union Club of the
Coopcentral of the Matas of Farfan Training workshop for
Credit Unions and reinforcement of the compliance officers

27/07/2013 Real estate Santiago de los Caballeros Hotel Aloha
Sol Training workshop for the Association of Real Estate
Companies (AEI) and reinforcement of compliance officers

01/08/2013 NGOs Distrito Nacional Alliance of NGOs meeting
with Lic. Addys Then, Executive Director of the Alliance of
NGOs, with the aim of following up on the training given to
NGOs and establish communication channels between the UAF
and this sector.

08/02/2013 Reporting Entities from different areas. Distrito
Nacional Conference Hall of the National Drug Council
Training workshop on the framework of the Diplomat in Drug
prevention: Law and Public Safety and Law 72-02.

06/08/2013 NGO Distrito Nacional Alliance of NGO Inspection
Visit to the Alliance of NGOs and Follow-up of non-financial
reporting entities that have been trained by the UAF.

27/08/2013 Jewelry Stores Distrito Nacional Meeting Room of
Financial Analysis Unit Training workshop to the Dominican
Jewelers Association (ASODOJO) on Law 72-02 and the
prevention of money laundering
63
FATF Rec.
31.
National
cooperatio
n
Rating
LC
Recommended Actions
 Adequate
financing
and 
The statistics supplied to the Mission by
infrastructure
are
required
for
the FAU and the Superintendency of Banks
strengthening these joint forces so
demonstrate the need for consolidating the
outstandingly developed by the
functions of the FAU and the
Dominican Republic.
Superintendency, since the intrinsic
functions of a financial intelligence unit
 Cooperation between the FAU and
require the FAU to have available all the
the Financial Intelligence Department
necessary information for its investigation
of the Superintendency of Banks
in an expeditious manner, and this is not
should be strengthened, and if possible
clearly reflected in the statistics provided.
their operations merged, since the
information
received
on
their 
Because of the importance of the work of
cooperation suggests the need to
the Customs authorities in money
consolidate the data.
laundering prevention, it would be advisable
to strengthen their joint task forces,
 Customs should be strengthened at
especially in all the international airports of
the international airports to enable it to
the country, the seaports and along the
combine its efforts adequately with
coasts of the country. Control of the
other law enforcement agencies.
frontier with Haiti also represents a serious
 There is no centrally coordinated
problem for the authorities.
data base.

Adequate financing and an effective
infrastructure are basic for the strengthening
of these joint task forces so outstandingly
developed by the Dominican Republic

Committee, as the body responsible for
promoting AML/CFT measures in the
country, should assume a more proactive
stance in the empowerment and operativity
of the Financial Analysis Unit.
International cooperation may be provided by any of the Competent
Authorities in its field of responsibility. Regarding STRs and requests for
information on the specific role of the FAU, the FAU itself is the responsible
agency. This does not mean that if some FIU requests information on bank
accounts, the FAU would not deal with the request. Just the opposite: it
accepts the request and deals with it, requesting the information from the
responsible authority. As for statistics, each agency has control of its own
operations and is responsible for their orderly administration.
The Directorate General of Customs (DGA) has a Department of Intelligence
for AML work.
The restructuring of the FAU and its objectives was coordinated by the
National Anti-Money Laundering Committee.
The General Customs Directorate has boosted its management efforts
through its port surveillance system, with the control of passengers and
goods, and has installed the SIGA at all ML/FT prevention agencies, which
represents a tremendous contribution of national co-operation. It is also
working simultaneously and completely with all law enforcement agencies,
in detecting and restricting illegal cross-border movement. The General
Customs Directorate has a module to control the entry and departure of
vehicles at the border, which allows an inventory to be obtained of all
incoming and outgoing vehicles from Haiti to the Dominican Republic and
vice versa. The FAU has signed a co-operation agreement for information
exchange that has allowed it online access to information from: the General
Customs Directorate, the General Directorate of Internal Taxes, the Central
Electoral Board, the Comptroller General of the Republic, the Social
Security Treasury, the Office of the Attorney General of the Republic, and it
maintains a fluid manual exchange of information with the Ministry of
Industry and Trade, the General Immigration Directorate, the National
Directorate for Drug Control, the National Police, among others. The
institutions that constitute the anti-money laundering system are in the
process of installing Statistical Analysis Software (SAS), where it will
consolidate all information from the various entities, which will facilitate the
flow of information among the different agencies that provide valuable
information.
The UAF on the 26th July, 2013 establishes the Inter institutional Counterterrorism work group in order to strengthen the inter institutional work
group against money laundering which exists since 2007 in the Attorney
64
FATF Rec.
Rating
Recommended Actions
General Office, in which the institutions that deal with ML/FT can exchange
information and can provide feedback to one another.
In that same order the UAF sent to the Public Prosecutor’s Office, 11
Financial Reports reported by reporting entities, where breaches of the law
against money laundering are present.
We continue strengthening the links of national inter-agency
cooperation between the investigative agencies in the field of
money laundering and financing of terrorism, by exchanging
information and providing feedback.
The UAF has sent 4 reports from December 13, 2013 to 20
March 2014
32.
Statistics
NC
 The mission could not obtain from
the SB statistics on the difference
between the number of reports
received and those sent to the DNCD
for investigation, on institutional
cooperation or breakdowns of the
reports by sector.
 Since the FAU is in its teething
period, it does not have the necessary
tools to carry out its investigations and
analyses, and therefore has no figures
on STRs received from the SB or
forwarded to the DNCD for
investigation.
 The statistics provided by the SB
(Table 9) is combining statistics on
suspicious operations reports, the cash
declarations
and
requests
for
investigations. This does not make
possible to differentiate between the
suspicious activity reports and cash
declarations generated by the financial
institiutions.
 The only law enforcement agency
from which the Mission received
statistics was the DNCD.
 There is no centralisation of

Inter-institutional cooperation figures
must be circulated by type of collaboration
provided, whether requests for freezing,
vetting, investigations, etc. including the
specific dates and the time taken to provide
and/or receive such cooperation.

It is important for each institution to keep
its own statistics separately and for there to
be a database with the appropriate security
measures

It would be advisable for the Dominican
Republic to establish a system in which all
the law enforcement bodies could be
connected to a central database on money
laundering and financing of terrorism and
other financial crimes. This database should
specialise in collecting together all
information relating to money laundering
and financing of terrorism, whether statistics
on cases of money laundering, sentences,
confiscations, investigations, international
cooperation, etc.

The statistics maintained by the
competent authorities should be more
complete and disaggregated.
It is
recommended that consideration should be
given to the appointment of an agency to

The maintenance of efficient and up-to-date statistics is a feature of the
abovementioned Strategic Plan. The plan is on target. The FAU will
have to issue, at least yearly, a report containing all information and
statistics on operations carried out, as well as typologies discovered.

The intention is for the FAU to be the central information unit, through
which all activities of prevention and detection are coordinated.

The FAU will be required to issue a sort of instructional document to
assist the other Competent Authorities to structure their reports and assess
information using a single database.

By Decree No. 749-08, dated November
13,
2008,
was
created the Dominican
Observatory of
Drugs, which is a technicalscientific research and documentation and inter-institutional framework
for
the
collection, systematization,
integration, analysis and
dissemination of updated
and
comparable information on drugs, associated
factors
and
related
crimes. Under that decree, the Observatory is responsible for centralizing
the
produced statistics generated
by the institutions
of the AML / CFT, such as statistics
on the
STR received and
disseminated; on
investigations, prosecutions and
convictions relating to laundering and terrorist
financing, on property
frozen, seized and
forfeited,
and on mutual legal assistance or other international
requests
for
cooperation.
65
FATF Rec.
Rating
33. Legal
persons–
beneficial
owners
PC
34. Legal
arrangemen
ts –
beneficial
owners
NC
Recommended Actions
AML/CFT statistics that permits
centralise all statistics on combating money 
The Drugs Dominican Observatory started activities on January, 2011.
regular review of the effectiveness of
laundering and the financing of terrorism.
It is under structuring stage of the national sub-system of statistics, design
the AML/CFT systems at Countries 
There should be centralized statistics on
of the matrix of variables and indicators, implementation of informatics
level.
international cooperation provided and
infrastructure and design of the network for grouping, systematization,
 Access was not obtained to
requested.
integration, analysis and spreading of produced information.
statistics on annual inspections carried
out by the Superintendency of Banks,
 The FAU maintains inter-institutional co-operation with all law
or on agreements with supervisory
enforcement bodies and during the period 2011-2012, it received and
bodies in other countries.
responded to 22 requests for information made by the Ministry of the
 In the Securities and Insurance
Attorney General. In 2011, the SIB received and responded to a total of
markets nothing has been done.
593 requests for the exchange of information, of which 517 were requests
pertaining to financial products, 61 to the freezing of assets and 15 to the
 No evidence was obtained that the
unfreezing of assets. It is currently in the process of installing the SAS that
competent authorities kept statistics in
will serve as a central database which can be accessed by all law
accordance with the Recommendations
enforcement bodies.
on extraditions and Mutual Legal
Assistance.
 The Mission was unable to obtain
See attached table on "Money Laundering Cases in the Judicial
centralised statistics on international
cooperation provided and requested by
System”
all the law enforcement authorities
 Nor on the approximate time taken
to provide cooperation.
 Statistics should be centralised and
coordinated.

There was no evidence of the 
The Dominican authorities should 
Bearer shares are impossible in the banking and exchange sector, but
existence of appropriate
introduce transparent and appropriate
they are possible in the ordinary market. There are sufficiently
measures to ensure that legal
measures to ensure that legal persons which
transparent measures to ensure that they are not used for money
persons empowered to issue
can issue bearer shares are not used for
laundering. These derive from the mandatory requirement for banks to
bearer shares are not used for
money laundering.
know their customers, and the obligation to justify cash operations in
money laundering.
excess of US $10,000.00. What requires attention and, as has been said, is
being studied by the FAU, is supervision of DNFBPs to ensure
compliance in this group of sectors.

It was not possible to 
Since no appropriate mechanisms were  The concept of trusts is not a part of Dominican law. A draft bill for a
discover whether there is
discovered, it is recommended that the Trusts Act is now being studied by the National Congress.
machinery
to
ensure
Dominican Republic incorporate into its
transparency in the use of
laws provisions to clearly define and Law 189-11 of July 16, 2011, governs the concept of trusts in the Dominican
trusts,
or
additional
regulate Trusts. This legislation should Republic and in Article 29, paragraph I, it establishes the trustee as the
regulation to avoid their
include adequate mechanisms to ensure reporting entity for compliance with the regulations on money laundering
being used for money
transparency and control of Trusts. For detection and prevention set forth in law 72-02.
laundering or financing of
example, that Trust contracts should be
66
FATF Rec.
Rating
terrorism.
Recommended Actions
entered in a central public register
permitting timely access to precise and upto-date information.
The Law on Trusts provides that secret trust transactions are prohibited, with
such transactions being understood as those for which there is no written and
express proof in respect of the objective claimed by them or by the settlers
by virtue of the act (article 51 a). Similarly, it is required in the creation of
the trusts act, the designation of the beneficial owner(s), as well as the
identification of the settler and trustee (article 13, paragraph I).
It establishes for the trustee, the obligation to keep the trust secret from third
parties, with respect to the operations, acts, contracts, documents and
information pertaining to the trusts, with the same scope that the economic
and penal legislation in force in the Dominican Republic provides for
banking secrecy or professional secrecy, which law 72-02 establishes for
money laundering investigations (article 13 and paragraph).
On the 2nd of March 2012, The Executive issued Decree No. 95-12
containing the rules of application of law No. 189-11 for the Development
of the Mortgage and Trust Market in the Dominican Republic. The same
states that both the Entities for Financial Intermediation, and Administrators
of Funds/Securities Intermediaries, and Exclusive Legal Persons, are
obligated to have a policy manual for the Prevention of Money Laundering,
and execute it faithfully.
Decree 95-12.declares verbal trusts as null. Financial Intermediary
Institutions are obligated to send, to the Superintendency of Banks, for
purposes of registration, a copy of the constituent instrument of each trust
created, after having complied with the formalities required before the
Chamber of Commerce and Production. Similarly, the trust shall provide
information with regard to third parties, from the date on which it has been
registered in relevant public records.
The trustee must make a sworn statement in which he states the legitimate
origin of property to be transferred, and that the Act which creates the trust,
are not proceeds of illicit means or objects. The constituent instrument must
detail the present and future assets of the trust, as well as identify the terms
and conditions for the transfer of the same. The extinction of the trust shall
be notified in writing to the Commercial Registration offices.
In accordance, as set out, in sub paragraph "d" of the article 32 of Decree
95-12, the Trustees and/or beneficiaries should be identified in the
constituent instrument and the assets, yields and profits may not be
transferred without the beneficiaries having been identified individually in
the Trust Act.
67
FATF Rec.
Rating
Recommended Actions
International Cooperation
35.
Conventio
ns
PC
36.
Mutual
legal
assistance
(MLA)
PC
37.
Dual
PC
 The International Convention for
the Suppression of the Financing of
Terrorism approved by the General
Assembly of the United Nations
approved on 9th December 1999 and
the United Nations Convention against
Transnational Organised Crime of 15th
November 2000 (Palermo Convention)
have not been ratified and therefore are
not part of the domestic legal system
of the Dominican Republic.
 The Dominican Republic has an
adequate legal framework to provide
international cooperation in money
laundering matters, but not with regard
to the financing of terrorism since, as
has already been stated, this activity is
not yet criminalised and there is no
anti-terrorist law to lay down
procedures to be followed in the area
of international cooperation relating to
the financing of terrorism.
 No evidence was obtained that the
requests
for
mutual
legal
assistance/international
cooperation
were attended to in time and without
undue delay.
 There is no protection of banking or
professional secrecy, as indicated in
Act 72-02, and this is applicable only
to ML and not to FT.
 Article 19 of the regulations
attached to the Money Laundering Act
already grants competent bodies
sufficient powers for the provision of
mutual assistance, but only in money
laundering cases.
 Mutual legal assistance is given in

Precise measures should be taken to
speed up the ratification of the International
Convention for the Suppression of the
Financing of Terrorism approved by the
United Nations General Assembly on 9th
December 1999 and the United Nations
Convention against Transnational Organised
Crime of 15th November 2000 (Palermo
Convention).

Urgently pass an anti-terrorist act, which
would not only criminalise FT as a serious
offence, but would also lay down the
procedures to be followed with regard to
international cooperation, mutual legal
assistance,
extradition,
bank
and
professional secrecy, or, failing this, refer to
the enforcement of procedures laid down in
other Acts.

It should also include measures for
preventing and settling conflicts of
jurisdiction, or make reference to other
relevant Acts for the resolution of such
conflicts




The law should also contain ample and
The imminent passage of the Anti-Terrorist Act implies ratification of
the International Convention for Repression of the Financing of
Terrorism. The Palermo Convention was ratified, as already noted, on 26
November 2006 by Senate Resolution 355-06.
As mentioned above, the anti-Terrorism Bill has been passed by the
Chamber of Deputies and is now before the Senate. Once approved there,
it will be sent to the Executive for promulgation. This Bill criminalises
terrorist financing as a serious offence. Its text presumes no jurisdictional
conflicts of any kind.
Article 50 of law 267-08 provides that for the purpose of mutual legal
assistance, banking secrecy shall not be enforceable.
Given that special recommendation II deals with the criminalization of
terrorism financing and laundering associated and that the mandate is: Every
country must criminalize terrorism financing, the financing of terrorist acts
or organizations. Countries must ensure that such offenses are established
as predicate offenses for Money Laundering.
The Dominican Republic, on a responsible manner, has included such
criminal offenses as mentioned in Special Recommendation II, in its Law
Against Terrorism No. 267-08, 4th of July, 2008. The draft project of the
cited Law, was prepared with the advice of international organizations and
experts and taking into account the agreements signed on the matter, by the
Dominican Republic, where the Dominican Republic is party.
The Bill provides for legal assistance and international cooperation: see
68
FATF Rec.
criminality
38. MLA
on
confiscatio
n
and
freezing
Rating
PC
the absence of dual criminality in the
least intrusive and non-mandatory
measures with regard to money
laundering, but there are impediments
in so far as FT is not criminalised as a
serious offence in Dominican domestic
law.
 The Mission was informed that if
the crime is classified as a serious
offence there is no type of legal
impediment to extradition or a request
for mutual legal assistance. As a
result, matters relating to FT remain in
suspense, since it is not a criminal
offence in Dominican domestic law
and therefore not subject to any of the
procedures set out in Act 72-02 and
Act 489 on extradition.
 No evidence was found of obstacles
to carrying out extradition in money
laundering cases.
However with
regard to financing of terrorism,
extradition would not be possible since
FT has still not been criminalised in
Dominican legislation and Article 5b
of Act 489 on Extradition in the
Dominican Republic embodies the
concept of dual criminality.
 The laws and procedures set out in 
the Dominican legislation for offering
mutual legal assistance in cases of
money laundering are appropriate with
regard to the tracing, freezing, seizing
and confiscation of property and
coordination of these proceedings with
foreign authorities. With regard to
financing of terrorism, there is no legal
framework for the said procedures.
Recommended Actions
sufficient provisions to enable the
competent authorities to undertake the
necessary measures to provide proper
mutual legal assistance.
See R. 36
Articles 74, 75 and 76.
 It is reiterated that the Anti-Terrorism Law has been passed and
promulgated under No. 267-08, dated July 4, 2008. This criminalises the
Financing of Terrorism as a Serious Offence (Article 25). The Minimum
Sentence is More than or Equal to Three (3) years, thus it falls under the
category of Serious Offences, according to the provisions of the Dominican
Penal Code. All Reporting Entities are responsible for reporting operations
deemed suspicious, now legally, since it was previously established, but as a
good practice.
Article 47, sub-paragraph “c”, law 267-08, establishes as one of the actions
of assistance, the carrying out of inspections, seizure or confiscation of
assets, instruments, materials, arms;
See attached table on "Money Laundering Cases in the Judicial
69
FATF Rec.
Rating
Recommended Actions
System
39.
Extradition
40. Other
forms of
cooperatio
n
LC
LC


No evidence was found of 
obstacles to carrying out extradition
in
money
laundering
cases.
However with regard to financing of
terrorism, extradition would not be
possible since FT has still not been
criminalised
in
Dominican
legislation and Article 5b of Act 489
on Extradition in the Dominican
Republic embodies the concept of
dual criminality.
The Dominican Republic should
criminalise financing of terrorism as
a serious stand-alone offence.

See R. 36
It is reiterated that the Anti-Terrorism Law has been passed and promulgated
under No. 267-08, dated July 4, 2008. This criminalises the Financing of
Terrorism as a Serious Offence (Article 25). The Minimum Sentence is More
than or Equal to Three (3) years, thus it falls under the category of Serious
Offences, according to the provisions of the Dominican Penal Code. All
Reporting Entities are responsible for reporting operations deemed
suspicious, now legally, since it was previously established, but as a good
practice.
Section III of the Terrorism Law provides all aspects related to the
extradition of Dominican nationals and nationals of other foreign states
resulting from terrorist acts
In order for the international conventions
to have the force of law they should be
ratified as early as possible by the
Dominican Republic

It is reiterated that the Anti-Terrorism Law has been passed and
category of Serious Offences, according to the provisions of the
Dominican Penal Code. All Reporting Entities are responsible for
reporting operations deemed suspicious, now legally, since it was
previously established, but as a good practice.
Nine Special Recommendations
SR.I
Implement
UN
instruments
NC
 The 1999 International Convention 
It is recommended that the passage of the 
for the Suppression of the Financing of
anti-terrorist act be speeded up and that it
Terrorism has not been ratified by the
should set out the procedures to be
Congress of the Dominican Republic.
followed, and the legal actions concerning
investigation, freezing, confiscation and
 The Anti-Terrorism Act has not
forfeiture of money or other assets intended
been passed.
for FT. It should also contain provisions for
 There are no laws or regulations
the unfreezing of such assets, their disposal,
setting out special procedures for full
and the rights of physical or legal persons 
The UN Security Council Resolutions are observed to the letter. The
compliance with the United Nations
involuntarily affected; including provisions
lists are sent to the banking and exchange institutions for their
Security Council Resolutions.
contained in the United Nations Security
compliance. Any positive response is communicated immediately to the
Council Resolutions on the subject of
UN-OAS Department of the Ministry of Foreign Affairs.
financing of terrorism

It is reiterated, what has been the Dominican Republic’s position in
70
FATF Rec.
Rating
Recommended Actions
prior Follow – Up Reports, with regard to:

The UN Security Council Resolutions are observed to the letter. The lists
are sent to the banking and exchange institutions for their compliance.
Any positive response is communicated immediately to the UN-OAS
Department of the Ministry of Foreign Affairs.
SR.II
Criminalize
terrorist
financing
NC
 At the time of the evaluation the 
It is recommended that the ratification of 
UN Convention for the Suppression of
the 1999 UN International Convention For
the Financing of Terrorism had not
The Suppression Of The Financing Of
been ratified, and there was no antiTerrorism be speeded up as much as
terrorism law. Financing of terrorism
possible.
is not criminalized.

In addition, the approval and entry into
force of the anti-terrorism act should be
speeded up and it is also recommended that
The approval of this Law involves the ratification of the 1999 United
in it the financing of terrorism should be 
criminalised as a serious offence, carrying a
Nations International Convention for the Suppression of the Financing of
penalty of not less than 3 years
Terrorism.
imprisonment.

With regard to the administrative interpretation of the secretariat, we
have thought prudent, to undergo all national legal consultations available,
before the courts of the Dominican Republic and if necessary, to require
international consultation, with the objective of obtaining a legal
interpretation of our anti – terrorism law, given that as stated before, the
Law is a result of advice received from international subject matter
experts, this implying it would be wrong to propose an amendment to a
law that as we understand is a product deriving from a national and
international requested standard.
SR.III
Freeze and
confiscate
terrorist
assets
NC
 FT is not criminalised.
 No evidence was found of any
formal mechanism for transmission of
updates of the lists to the system under

It is recommended that adoption of the
anti-terrorist act should be speeded up and
that it should contain provisions for: The
procedures to be followed for freezing of

It is reiterated that the Anti-Terrorism Law No. 267 of July 8, 2008 has
been passed and criminalises the Financing of Terrorism as a serious
offence. There is a natural link between the Anti-Terrorism Law and AntiMoney Laundering Law 72-02. See Articles 35 and 51 of the Anti-
71
FATF Rec.
Rating
supervision, or of any obligation on the
part of the supervised entities to carry
out the verifications, or any legal basis
for penalising non-compliance.
 There is no legal basis for freezing
funds or other assets for FT.
Recommended Actions
funds or other assets intended for FT, as
well as provisions for unfreezing of such
funds, their use, and the rights of physical or
legal persons involuntarily affected; and that
failing this the law should refer to the
procedures established in Act 72-02;

The provisions contained in the UN
Security Council resolutions on financing of
terrorism.

Effective procedures to examine and
implement the CFT actions initiated under
the freezing mechanisms of other
jurisdictions. These procedures should
ensure prompt determination, in keeping
with applicable national legal principles, of
whether there exist reasonable grounds for
initiation of a freezing process and for the
subsequent freezing, without delay, of
money or other assets.

Freezing should include:
c) money or other assets controlled, directly
or indirectly, in total or in aggregate, by
designated persons, terrorists, or those
who finance terrorism or terrorist
organisations, and
d) money or other assets derived from or
generated by money or other assets controlled,
directly or indirectly, in total or in aggregate,
by designated persons, terrorists, or those who
finance terrorism or terrorist organisations.

Effective procedures to evaluate requests
for deletion from the list, and for unfreezing
of money or other assets of persons or
entities deleted from the list, in timely
fashion and in keeping with international
obligations.

Appropriate procedures to enable a
person or entity whose money or other
assets have been frozen to challenge the
measure before the relevant tribunal.

It is recommended that the Dominican




Terrorism Law 267-08.
As already noted, the UN Security Council Resolutions are observed to
the letter. The lists are sent to the banking and exchange institutions for
their compliance. Any positive response is communicated immediately to
the UN-OAS Department of the Ministry of External Relations.
The Anti-Terrorism Bill is very clear on procedures and the bodies
responsible. See Articles: 36, Special Prosecutor; 51, Freezing of Funds;
52, Bank Secrecy No Defence; 58, National Anti-Terrorism Committee;
59, Extradition; and 68 to 73, Seizure and Confiscation.
It is reiterated, what has been the Dominican Republic’s position in
prior Follow – Up Reports, with regard to:
The UN Security Council Resolutions are observed to the letter. The lists
are sent to the banking and exchange institutions for their compliance.
Any positive response is communicated immediately to the UN-OAS
Department of the Ministry of Foreign Affairs.
72
FATF Rec.
SR.IV
Suspicious
transaction
reporting
Rating
NC
Recommended Actions
Republic have effective means of informing
the financial sector of the measures
undertaken under the freezing provisions to
be embodied in the Anti-Terrorism Act to
be approved, and on the basis of which such
actions are taken.

It is recommended that the Dominican
Republic provide the financial institutions
and other persons or entities that may be
holding captured funds or other assets with
a clear guide to their obligations with regard
to actions to be taken under the freezing
provisions of the Anti-Terrorism Act.

 In the Dominican Republic there is 
The Senate should quickly approve the 
The Anti-Terrorism Law has been passed and promulgated as No. 267no provision with legal character and
Anti-Terrorism Bill, in order that the
08 of July 4, 2008. It criminalises terrorist financing as a serious offence.
force of law to require regulated
requirement to submit STRs with financing 
All reporting institutions are now mandated to report suspicious
entities,
particularly
financial
of terrorism profiles can be expressly stated.
transactions related with terrorist financing.
institutions, to submit suspicious

The same administrative penalties for non-compliance are applicable
transaction reports related to the
for ML and FT cases
financing of terrorism. To banks and

With regard to the administrative interpretation of the secretariat, we
exchange institutions is applied an
have thought prudent, to undergo all national legal consultations available,
administrative instrument issued by the
before the courts of the Dominican Republic and if necessary, to require
Superintendency of Banks entitled
international consultation, with the objective of obtaining a legal
“Guidelines for Prevention of Illicit
interpretation of our anti – terrorism law, given that as stated before, the
Activities
Known
as
Money
Law is a result of advice received from international subject matter
Laundering
and
Financing
of
experts, this implying it would be wrong to propose an amendment to a
Terrorism for Banking and Exchange
law that as we understand is a product deriving from a national and
Institutions”. Through this, Warning
international requested standard.
Signals on financing of terrorism are
laid down and instructions given for
STRs to be presented on this subject
also. However, this instrument does
not have the force of law
 In addition, the FAU, as the
authority for receiving, analysing and
circulating STRs, has not received any
related to financing of terrorism.
 Furthermore, up to now in the
insurance and securities market, the
subject is non-existent.
73
FATF Rec.
SR.V
Internation
al
cooperation
Rating
NC
Recommended Actions
 The
impediment
to
legal 
It must be repeated that it is essential for 
As mentioned above, the anti-Terrorism Act has been promulgated as
proceedings
and
mutual
legal
the financing of terrorism to be criminalised
No. 267-08 of July 4, 2008.
assistance is: since FT is not penalised,
as a serious offence and that the passage of 
Mutual legal assistance is regulated in Title V, articles 49 to 55;
a fundamental principle of criminal
the anti-terrorism act should be speeded up
regulation of extradition and witness’s provisions are in title VII, arts. 59law is not complied with, i.e. the
to define procedures to be followed
64. Title VIII deals with serving of penalties in a foreign country. Joint
principle that there can be no crime
regarding international cooperation, mutual
combat [against FT] is addressed in Title X, arts. 74 to 76.
without a law establishing it as such.
legal assistance, and extradition, or, failing
that, it should refer to the procedures During the period 2008 to 2010, our jurisdiction received and responded to
 In Dominican law, extradition
established in other laws for the purpose.
cannot exist in the absence of dual
39 requests for international co-operation, with that figure being recorded at
criminality. In view of the fact that
approximately 29 in 2011. In 2012 thus far, the FAU has received only 5
financing of terrorism is not
requests and it is currently processing the response to same.
criminalised extradition is impossible
in such cases.

As it is known by the Secretariat, this crime was specified in the
Republic,
in the Law against Terrorism, approved and issued with the No.
 The Dominican Republic should
267 – 08, on July 4th, 2008.
criminalise the financing of terrorism
Number of requests for International Cooperation and of
as a serious stand-alone offence.
 The authorities are urged to ratify
the United Nations Conventions on
Financing of Terrorism in order for
them to acquire the force of law. Even
though
the
authorities
provide
cooperation in cases of financing of
terrorism, this cooperation is limited
and not covered by law.
physical and/or legal persons from which the FIU
requested information, period from January 2012 to
October 2013
 Bermuda (1)
 Curacao (1)
 Philippines (2)
 Guatemala (2)
 British Virgin Islands (1)
 Italy (1)
 Turks and Caicos Islands (1)
 Curacao (1)
We have received and responded to 10 requests for
international cooperation for a total of 156 physical and
legal persons
The UAF, made 18 requests for information from 127 individual and legal
entities, broken down in the following manner: to the United States 40.2%
of the total number of persons from whom information was requested;
74
FATF Rec.
Rating
SR.VI
AML
requiremen
ts
for
money
and value
transfer
services
LC
SR.VII
Wire
transfer
rules
PC
Recommended Actions
Venezuela (26.0%); China, 10.2%; Panama 6.3%, and the rest to other
countries.
 There is no Anti-Terrorist Act in 
The law against terrorism should be 
The anti-Terrorism Act has been promulgated as No. 267-08 of July 4,
which the question of money transfer
approved as early as possible, in order to
2008 it criminalises terrorist financing as a serious offence. The same
might be included.
provide financial and exchange institutions
administrative penalties for non-compliance of the ML preventative
with a legal basis for implementing CFT
measures will be applicable for the CFT Law.
prevention programmes not simply based on 
By virtue of article 55 of Law 72-02, the National AML Committee
“international best practice”.
requested that the Monetary Board exercise its powers from Law 183-02

For
purposes
of
dissuasion,
(article 9) to establish the amount for reporting of money or value
administrative penalties should be applied
transfers, in order to comply with FATF Rec. VI.
with regard to the shortcomings which must
certainly be detected in the on-site
inspections.
 There are no specific measures for 
Closer scrutiny and follow-up of the
the recording of information on money
weaknesses of the transfer system is
transfer.
necessary, with the implementation of
effective penalties, to persuade operators of
 There are informal funds transfer
the necessity to strengthen their operations,
businesses without any control.
not only in relation to money laundering but
 There is little training on the
also with regard to financing of terrorism.
subject.
Without prejudice to the work of the
 The stock market and insurance 
Exchange Supervision Department of the
market firms have no specific
Superintendency of Banks, by means of a
mechanisms.
validator designed in Banconet for the
 There is no CFT legislation.
purpose, better training is required in the
examination of electronic transfers of all
kinds, including those known as “batched
transfers”, and the banking and exchange
institutions are therefore urged to allocate
the necessary economic resources for this.

Stock market and insurance market
institutions,
and
their
respective
Superintendencies,
should
implement
preventive policies applicable to transfer
operations, including monitoring, in which
they are involved by the nature of their
business.

Urgent measures are required to
strengthen control of transfer services
provided by informal operators, particularly

It is legally mandatory to keep records of operations for ten (10) years.
This is because ten years is the statute of limitations for serious offences.
Failure to keep records incurs penalties (see Art. 41 (6) of Act 72-02).
Transfers are operations and as such must be recorded and the records
kept for ten years. The new procedures for on- and off-site supervision
introduced as part of the technical support programme of the IMF to the
Superintendency of Banks, include more specific requirements in this
area: for example, daily submission of remittances and receipt of
remittances and transfers via Bancanet (an electronic network). From
these reports the Superintendency can determine who is sending and
receiving remittances or transfers, the geographical areas from and to
which the largest number of remittances and transfers go, their frequency,
etc.

The Department of Exchange Supervision has disappeared and its
functions have been assumed by the Inspection Department and the
Control and Information Department, in which the ML Prevention
Division is located. This division is responsible, with the advice of the
IMF, for receiving reports arising from the new supervision policies.

The Superintendency of Securities is aware of the risk involved in nonimplementation of adequate supervision as regards transfers. Therefore
this type of operation is verified, and the institutions are urged to take the
risk as seriously as the banking institutions do.

Informal sectors are common in all countries of the world. In the
Dominican republic the operations of these entities are prohibited by
Monetary and Finance Act 183-02.this means that to engage in banking,
exchange, remittance and money transfer operations the entities must be
possess a license duly issued by the Currency board through the
75
FATF Rec.
Rating
Recommended Actions
in view of the effect on the Dominican
Republic of the complex problems of its
neighbouring country.

Legislation against the financing of
terrorism should be enacted.


SR.VIII
Nonprofit
organizatio
ns
NC

Though it is true that Act 122-05 
The anti-terrorism act that is about to be 
offers some control measures, for
passed should contain specific provisions to
example the obligation to keep
control the activities of NGOs in the
organised accounts showing all the
framework of FT, including procedures for
income and expenditure of the
prevention, detection, confiscation or
company with indications of their
freezing of funds diverted to support
sources and investment, since FT is
terrorist operations or organisations. The
not criminalised, action to control
competent authorities should also review the
and punish FT is limited.
adequacy of the recently passed Act 122-05, 
or other relevant legislation, concerning the

There was no evidence of the
improper use of NGOs for financing of
existence of a supervisory or
terrorism
disciplinary body for NGOs in
regard to FT;

There are no measures to prevent
NGOs being used by terrorist
organisations, either to avoid
freezing or confiscation of their
assets or to divert funds to support
their activities.

Superintendency of Banks. The ALM Unit of the Procuraduría General
de la República has recently carried out street operations in an effort to
shut down and penalise those who violate Act 183-02, since this entails
violating ALM Act 72-02 also, by failing to report their operations to the
FAU, among other possible offences.
terrorist financing as a serious offence
By virtue of article 55 of Law 72-02, the National AML Committee
requested that the Monetary Board exercise its powers from Law 183-02
(article 9) to establish an obligation to report on a daily basis all wire
transfers of US$1.000 or other Foreign currency.
terrorist financing as a serious offence. For protection through NGOs the
Bill offers thej following Articles: 19, Criminal Association for Purposes
of Terrorism; 20, Conspiracy; 23, Recruitment and Support; 29 Incitement
to Terrorism; and 30, Attempt, in addition to the already mentioned
Financing of Terrorism in Art. 25.
The 122 Law on Regulation and Development of Non-profit
Associations establish a procedure for approval and registration of
these entities to operate. This legal framework provides the basis to the
proposal for structuring a mechanism for monitoring and supervise the
activities of these entities, which is developing The Attorney General of
the Republic together with other state agencies with competence in this
field. We note that the Instructions "Know Your Customer", Third
Edition issued by the Superintendence of Banks, through Circular No.
013/10, dated September 13, 2010, Chapter IV, Paragraph 7, specifies the
tasks to be considered for business with "Non-Governmental
Organizations and Foundations," which are equivalent to the above in this
recommendation, which is why there are policies of control within the
sector EIFC’s.

The Financial Intelligence Management Tax Unit of the SubDirectorate of DGII, with the aim of complying with article 49 of
Law 72-02, has been given the power of the Imposition of
Administrative Sanctions on non-financial reporting entities. This
unit has already imposed sanctions on reporting entities in the nonfinancial sector.
76
FATF Rec.
SR.IX Cash
Couriers
Rating
NOT ASSESSED
Recommended Actions

Article 8, sub-paragraph a) of Law 72-02, provides that: “They shall also be
penalised using the penalties set forth in the chapter on penalties (articles 25,
26 and 27 of this law): a) The individual, whether a national or foreigner,
who, upon entering or leaving the national territory, via air, maritime or
ground means, carrying money or bearer securities or who sends same via
public mail or courier, at a value exceeding the sum of ten thousand dollars,
in United States currency (US$10,000.00) or another foreign currency, or its
equivalent in the national currency, fails to declare or falsely declares its
value in the forms prepared for that purpose;”
Article 200 of Law 3489 (amended by Law No. 226, dated 21/06/06,
G.O.103969), establishes in its paragraph that: “It shall be considered as
smuggling and they shall be accused of that offence, the individual, whether
a national or foreigner, who, upon entering or leaving the national territory,
via air, maritime or ground means, carrying money or bearer securities or
who sends same via public mail or courier, at a value exceeding the sum of
ten thousand dollars, in United States currency (US$10,000.00) or another
foreign currency, or its equivalent in the national currency, fails to declare or
falsely declares its value in the forms prepared for that purpose. In the case
where the investigations reveal that the money confiscated is the product of
money laundering activities, it shall be enforced with all its consequences,
Law No. 72-02, of June 7, 2002, on the Laundering of Proceeds of the Illicit
Traffic in Drugs, Controlled Substances and other Serious Offences.”
The DGA has made foreign currency declaration forms available to the
passenger upon the entry into and departure from the Dominican territory.
The General Customs Directorate through the SIGA, has a module to control
the entry and departure of vehicles at the border, which allows an inventory
to be obtained of all incoming and outgoing vehicles from Haiti to the
Dominican Republic and vice versa. The DGA has developed a single
window system. All documentation and information on both goods and
passengers pass through said window, all in one place, thereby maximising
the control of cross-border transport.
The DGA has developed a passenger and cargo risk management system,
with which emphasis can be placed on the more sensitive areas of moneylaundering..
The FAU has access to the DGA’s database that records breaches against
77
FATF Rec.
Rating
Recommended Actions
article 8, sub-paragraph a) of law 72-02, regarding the non-declaration or
false declaration of cash or securities upon entering or departing the
Dominican territory. The DGA has available in its database, the declarations
exceeding US$ 10,000.00 and those falling under the threshold established
are considered suspicious.
78

- Caribbean Financial Action Task Force

Transcription

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