Dominican Republic Country Summary

FATF Status

The Dominican Republic is not on the FATF List of Countries that have been identified as having strategic AML deficiencies

Compliance with FATF Recommendations

The latest Follow-Up Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in The Dominican Republic was undertaken in 2019. According to that Evaluation, The Dominican Republic was deemed Compliant for 14 and Largely Compliant for 20 of the FATF 40 Recommendations. It was Partially Compliant or Non-Compliant for all 6 of the Core Recommendations. It was deemed Highly Effective for 0 and Substantially Effective 2 of the Effectiveness & Technical Compliance ratings.

The Dominican Republic faces significant challenges related to crime and corruption, despite improvements in the enforcement of anti-corruption laws under the current administration. While there are legal frameworks in place to combat corruption, issues such as political interference in the judiciary, systemic corruption, and the influence of organized crime networks continue to undermine effective governance and public trust.

The Dominican Republic has established itself as a rapidly growing upper middle-income economy, with a projected real GDP growth of 5 percent in 2024, largely driven by robust foreign direct investment (FDI) in sectors such as tourism, telecommunications, and energy. The government actively promotes FDI through various incentives, including tax exemptions and participation in the Dominican Republic-Central America Free Trade Agreement (CAFTA-DR), which enhances investor protections and market access. However, challenges remain, including concerns over corruption, bureaucratic inefficiencies, and inconsistent legal enforcement, which can hinder the investment climate despite the government's ongoing efforts to improve transparency and address these issues.