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7. Loan Services / Factoring / Loan Broking / Finetrading
Dominican Republic  Dominican Republic

There are no political reservations that we are aware of regarding the business area of Loan Services etc.



Legal Affairs


There are no specific regulations on the operation of these services.



Economic Conditions


Nevertheless, Factoring is a growing business in the Dominican Republic on the past few years, both performed by Financial Intermediation Entities and private entities based on contractual obligations. As of this date we knowledge of at least one electronic factoring platform operated by a Financial Entity.

Also, there is at least one electronic platform offering small loans to the general public.



Miscellaneous


Although there is no specific regulation on these types of services, as per the provisions of Law 126-02 on E Commerce, Electronic Documents and Digital Signature, there are no specific restrictions for the performance of said services, except for regulated services.

Monetary and Financial Law 183-02 restricts the operation of financial intermediation services to entities duly authorized by the Monetary Board, and subject to supervision by the Superintendence of Banks, therefore, there would be a restriction for any entity that is not authorized to operate by the Monetary Board to offer a service that could be consider as financial intermediation, in terms of receiving deposits and granting loans.

As per other services such as factoring intermediation, although there is no current regulation of these operations they might be performed as per the provisions of Law 126-02 based on contractual agreements.

In any case, FinTechs in this sector must also comply with Law 155-17 for Prevention of Money Laundering and Terrorism Financing. Also, entities that offer factoring services must be on a register of the Superintendence of Banks as part of the Support and Related Services Entities, in accordance with Monetary and Financial Law 183-02.



Contributing Authors

Jiménez Cruz Peña

José Cruz Campillo
Santo Domingo, Dominican Republic

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Chapter Index:


1. Payment Services / Mobile Payment

2. Asset and Portfolio Management

3. Consulting and Broking Services / Robo-advisory / Auto-trading

4. Trading Platforms / Social Trading Platforms / Signal Following

5. Crowdfunding / Crowdinvesting / Crowdlending

6. Virtual Currency - Bitcoin

7. Loan Services / Factoring / Loan Broking / Finetrading

8. Online Banking Services

9. Analytics and Research / Data Management / Risk Management

10. Accounting

11. Identification

12. Online-pawning

13. InsurTech

14. RegTech

15. Initial Coin Offerings (ICOs)

Disclaimer:
The information in this guide provides a general overview at the time of publication and is not intended to be a comprehensive review of all legal developments nor should it be taken as opinion or legal advice on the matters covered. It is for general information purposes only and readers should take legal advice from a Multilaw member firm.

Publication Date: 1 May 2018