Name
Global FinTech Guide
Country Name
Dominican Republic
SectionTitle
KYC requirements
Body
The know your customer or know your client (KYC) guidelines and regulations for financial services require that professionals try to verify the identity, suitability, and risks involved with maintaining a business relationship.

Legal affairs

National regulatory framework regarding AML and effective date of the regulations

Law 155-17 regarding anti-money laundry and terrorism finance, effective since August 2017, is the primary regulatory framework regarding AML. Financial regulators incorporate such law into their sectors through specific regulations.

National regulator or relevant authority for AML controls

Law 155-17 grants the regulatory authority to the regulator of each sector (e.g. Superintendence of Banks for banking, Superintendence of Insurance for insurance, Tax Authority for general sector, etc.). However, the Financial Analysis Unit (“FAU”) is the link between each regulator and the Public Ministry. Additionally, the FAU is the administrative support of the National Committee against the money laundering and terrorism finance, which is the organ with high level functions (Formulation of public policies and international cooperation, among others, regarding AML). 

Customer Due Diligence

Conduct of a typical KYC identification process

It depends on the sector, since each sector has its own specific requirements regarding the KYC identification process. Some sectors are more advanced than others. The minimum standard for the process is to identify the client and/or its representative, as well as identification of the final beneficiary. The methods to accomplish these requirements vary depending on the sector.

Possibility to meet customer due diligence requirements by relying on third parties who are obliged by law themselves to comply with AML regulations

This depends on the sector. However, relying on third parties does not exempt the regulated entity of any responsibility in case of any breach of regulation.

Possibility to outsource customer due diligence by contract to other third parties who are not obliged by law to meet AML regulations and rely on these (e.g., WebID, IDnow, PostIdent)

This depends on the sector. For example, banking is permitting digital onboarding (including KYC process) with some restrictions regarding contracting third parties, even when the third party is not obliged to meet such AML regulations. Other sectors do not count with specific regulation in this sense.

Presence of a license or registration requirement for the third party in case of outsourcing customer due diligence

No, there is not.

Further questions

Entities that could be relied on specifically by law as a third party to comply with AML regulations (regardless of outsourcing)


Yes credit institutions
Yes financial institutions
Yes auditors, external accountants, and tax advisors
Yes notaries and other independent legal professionals
Yes other trust or company service providers
Yes estate agents
Yes other persons trading high-value goods
Yes providers of gambling services


Authors

NameOrganisationEmail
Michelle Abreu VargasOMG[email protected]06517
Manuel Troncoso HernándezOMG[email protected]06517
Aldana Fernández MartínezOMG[email protected]06517
Diego García MelendezOMG[email protected]06517
Alejandro LamaOMG[email protected]06517

Disclaimer

© 2022, OMG. All rights reserved by OMG as author and the owner of the copyright in this chapter. OMG has granted to Multilaw non-exclusive worldwide license to use and include this chapter in this guide and to sublicense Lexis Nexis, a division of RELX Inc. and its affiliates certain rights to use and distribute this guide.

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.

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