Dominican Republic Country Summary
Medium Risk
View full Ratings TableSanctions
Lower Concern
FATF AML Deficient List
Lower Concern
Terrorism
Medium Concern
Corruption
Medium Concern
US State ML Assessment
Higher Concern
Criminal Markets (GI Index)
Medium Concern
EU Tax Blacklist
Lower Concern
Offshore Finance Center
Lower Concern
Please note that although the below Summary will give a general outline of the AML risks associated with the jurisdiction, if you are a Regulated entity then you may need to demonstrate that your Jurisdictional AML risk assessment has included a full assessment of the risk elements that have been identified as underpinning overall Country AML risk. To satisfy these requirements, we would recommend that you use our Subscription area.
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Anti Money Laundering
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.
Sanctions
There are currently no international sanctions in force against Dominican Republic.
Criminality
Rating |
0 (bad) - 100 (good) |
|---|---|
| Transparency International Corruption Index | 36 |
| World Bank: Control of Corruption Percentile Rank | 38 |
The Dominican Republic faces significant challenges related to crime and corruption, despite recent improvements in the enforcement of anti-corruption laws and a commitment from the government to address these issues. High levels of perceived corruption continue to hinder effective governance, with systemic problems persisting in both the judiciary and law enforcement, while civil society organizations play a critical role in advocating for transparency and accountability.
Economy
The Dominican Republic's economy is significantly influenced by foreign direct investment (FDI), making it one of the top recipients in the Caribbean, particularly in sectors like tourism, real estate, and telecommunications. The government actively promotes FDI through attractive tax incentives and its membership in the Central America Free Trade Agreement-Dominican Republic (CAFTA-DR), which enhances competitiveness and investor protections. However, challenges such as corruption, bureaucratic inefficiencies, and inconsistent enforcement of regulations create a complex investment climate, despite ongoing efforts by the current administration to improve transparency and address systemic issues.
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