Law 155-17 Against Money Laundering and Terrorism Financing is one of the most demanding regulations in the Dominican legal system. Since its enactment, it has progressively expanded the universe of companies and professionals required to implement compliance programs, and the penalties for non-compliance are severe: fines of up to RD$50,000,000, suspension of operations, and criminal liability for executives.
What many business owners do not know is that the law does not apply only to banks and casinos. If you have a medium-sized company in certain sectors, you may already be an obligated subject.
Who are obligated subjects under Law 155-17
The law establishes two categories: financial obligated subjects and non-financial obligated subjects. The former includes banks, insurers, pension funds and similar entities. The latter — and this is where many business owners are surprised — includes:
- Real estate companies and agents
- Jewelry stores and precious metals dealers
- Certified public accountants and audit firms (in certain circumstances)
- Lawyers who assist in commercial or corporate transactions
- Notaries public
- Free trade zone companies
- Art dealers and antique traders
- Money transfer and remittance companies
- Casinos and gambling establishments
If your company operates in any of these sectors, the obligation to have an Anti-Money Laundering Compliance Program (PCPLA) is not optional.
What a compliance program must contain
A Compliance Program pursuant to Law 155-17 and its regulations is not a desk document. It is a living system that must include:
Designated Compliance Officer
You must formally designate a person — with functional autonomy and direct reporting to the management level — as Compliance Officer. This person is responsible for implementing and supervising the program and must meet fitness requirements established by the relevant regulator.
Know Your Customer (KYC) Policy
Before establishing any significant business relationship, your company must identify and verify the client's identity, determine whether they are a Politically Exposed Person (PEP), understand the purpose of the business relationship, and monitor unusual transactions.
Suspicious Activity Reports (SAR)
When your company detects a transaction that has no apparent economic justification, or that presents typical money laundering characteristics, it must report it to the Unidad de Analisis Financiero (UAF) within established deadlines. Failure to comply with this obligation — even if the transaction turns out to be innocent — is sanctionable.
Record keeping and document preservation
All documentation related to customer due diligence must be retained for a minimum of five years. This includes copies of identity documents, contracts, transaction records, and any relevant communications.
Staff training
The program must include periodic training for all personnel who have contact with clients or handle transactions. An employee's ignorance does not exempt the company.
The warning signs your team must recognize
The law and its complementary regulations describe typologies — patterns of suspicious behavior — that your staff must recognize:
- Clients who pay large sums in cash without apparent commercial justification
- Transactions involving high-risk countries
- Clients who show disinterest in business terms but great interest in transaction speed
- Complex corporate structures without apparent commercial logic
- Requests for unusual confidentiality about the identity of beneficial owners
Consequences of non-compliance
The Public Ministry, UAF, and sector regulatory bodies have supervision and sanctioning powers. The consequences of not having an adequate compliance program can include:
- Administrative fines from RD$500,000 to RD$50,000,000
- Temporary or permanent suspension of operations
- Criminal liability for administrators and executives (sentences of 10 to 20 years)
- Irreparable reputational damage
How to implement your program now
The time to implement a compliance program is not when the UAF calls at your door. At Effort Business Consulting we have a specialized regulatory compliance department that will design and implement your PCPLA in accordance with current regulatory requirements, train your staff, and accompany you in periodic reviews.
If you are not sure whether your company is an obligated subject, contact us for a no-cost diagnostic.
