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 has made strides in combating corruption, with improved enforcement of laws under President Abinader's administration, which has focused on transparency and targeted high-level officials in investigations. Despite these efforts, U.S. companies still view corruption as a barrier to foreign direct investment, citing issues with government competency and favoritism in public tenders. Civil society organizations play a crucial role in anti-corruption initiatives, although some face scrutiny regarding their objectivity due to ties with influential groups.

The Dominican Republic has a rapidly growing economy, historically one of the top recipients of foreign direct investment (FDI) in the Caribbean, particularly in sectors like tourism, real estate, and telecommunications. Despite facing challenges such as corruption and bureaucratic inefficiencies, the government actively promotes FDI through tax incentives and its membership in the Central America Free Trade Agreement (CAFTA-DR), which enhances investor protections. The economy is projected to grow by around 5 percent in 2024, aided by government subsidies aimed at mitigating inflation.

The investment climate in the Dominican Republic is characterized by a strong push for foreign direct investment (FDI), supported by generous tax exemptions and incentives, particularly in sectors like tourism, real estate, and renewable energy. However, foreign investors face challenges such as systemic corruption, unclear regulations, and inconsistent enforcement of laws, which can hinder investment efforts. Despite these issues, the government is making efforts to improve transparency and address corruption, which may enhance the overall investment environment in the future.