Although there are laws against money laundering, such as Law 155-17, there is no regulator or superintendent that watches over the economic procedures for the non—financial sectors such as car dealers, casinos, real estate operators and many others, which leaves the door open for illicit operations that could be having a negative impact on the social development of the Dominican Republic, putting long-term economic growth at risk, according to a report in the newspaper, El Dia.
Law 155-17, that deals with money laundering, classifies those sectors as being under obligatory observation, which means they are required by law to report financial transactions of their companies and their clients that are more than US$1,000 within 24 hours of these being made. According to the law, the failure to comply with the requirement could result in fines and jail sentences.
According to Juan Carlos Medina, a corporate vice president for Compliance for the BOD Financial Group, this situation indicates that the system for the prevention of money laundering is not exclusive to the financial sector or the banks. He noted that the sectors mentioned above needed to fall into line and that the government and the private sector will have to train these actors in order for them to become familiar with the law and reporting system.
Medina told reporters that “the country is in a strategic position in Latin America due to its geographical location, and because of that it is vital to improve its efforts for the implementation, control and punishment of money laundering. Law 155-17 grants a period of one year for individuals or companies to report suspicious operations or transactions, including activities that lack a legal economic justification. The penalties for violating Law 155-17 include up to 20 years in prison and fines of as much as 400 base salaries (in the neighborhood of RD $2 million) for violations. These and other issues will be on the agenda at the IX BankAmerica Congress on money laundering which will be held 16-17 May 2018, at the Intercontinental Hotel in Santo Domingo.
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El Dia
26 April 2018
