The Senate modified the Anti-Money Laundering/Combating the Financing of Terrorism Bill to exclude betting shops. The bill would enforce in the Dominican Republic measures that are now globally sanctioned under the Financial Action Task Force (FATF-GAFI).
The bill would replace Law 72-02. The bill had been approved already by the Chamber of Deputies. It had been reviewed by the commissions of defense, national security and justice of the Senate.
Senator Charlie Mariotti of Monte Plata proposed that gaming and betting shops be excluded from the bill. Only casino gambling will fall under the monitoring of the law as approved in the Senate. The argument is that gaming is not a standard of the group of international financial action and that there are 30,000 betting shops in the Dominican Republic and too many illegal betting shops. He argued that it would be difficult to assure compliance with the law for the thousands of betting shops nationwide.
The senators also agreed to change the wording so that it would state: “We are going to add (…) definition of asset laundering: is the process by which physical persons or companies or criminal organizations seek to give legitimacy to goods or illicit assets that are the result of crimes outlined in the bill,” stated Marriotti.
The bill approved in the Senate calls for minimum jail sentences of 5 to 10 years and maximum jail sentences of up to 40 years and 400 minimum wages.
The initiative penalizes financing terrorism and establishes the seizure of goods and penalizes government officers found guilty of money laundering, regardless of their position.
In an editorial on 22 May 2017, El Día newspaper criticizes the action by the Senate. The editorialist observes that most of the betting shops belong to large companies and thus the regulations need to be imposed on the parent companies. The editorialist also criticizes the argument by senator Mariotti that there are too much betting shops to regulate these. The editorialist observes that in the case of the illegal shops, the authorities need to prosecute those that are operating without permits. The editorial reminds the “honorable senators” that there should be guarantees that money in circulation is legal. The editorialist hopes that the Chamber of Deputies “cleans up the asset laundering bill.”
Also commenting on the Senate eliminating gaming and betting shops from the bill, financial analyst Alejandro Fernández tweeted: “If anyone still has doubt that we are not under the thumb of a mafia of gamblers, how disgusting!” (“Por si alguien dudaba que estamos en las manos de una mafia de riferos, que asco).
El Día columnist, Víctor Batista observed that the senators voted so that the business that moves the most cash in the Dominican Republic (conservatively estimated at RD$160 million a day) can continue unregulated. He observes the truth is that the large businesses that own the gambling operations have good connections in Congress due to political patronage. “They think they are worthy, once more, of a custom made suit, so that the effects of the law not be able to reach them,” he writes. “The betting shop centrifuge, so defended and spoiled in Congress, is the worst that can exist generating inequity, social backwardness and evasion. The political powers to be are to blame for converting the gamers into gentlemen.”
In an editorial, Diario Libre newspaper observes that criminal organizations produce lots of cash that they need to launder to be legal in the financial system and thus use the resources available in the formal and informal market. The newspaper observes that the argument that there are too many illegal betting shops to prosecute these could then be applied to drug trafficking posts and motorcyclists who steal cell phones. “Everyone in this country knows that most of the betting shops are directed by conglomerates and that several of the representatives of those groups have been elected deputies and senators. Thus, what would be intelligent and sensible on behalf of the legislators would be to not touch any aspect that could benefit that activity. Think twice, honorable legislators.”
The bill now returns to the Chamber of Deputies for approval of the amendments, and then it will be sent to the Presidency for final approval.
Read more in Spanish:
Diario Libre
Listin Diario
El Dia
El Dia
Diario Libre
22 May 2017
