KYC.IO

Global Regulations and Requirements for KYC Onboarding
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KYC to onboard domestic persons

namedate of birthplace of birthidentification numberaddresstelephone number

KYC to onboard international persons

namedate of birth

corporate requirements

company namedate of incorporation.addressTelephone numbertax identification numberby-lawsmain activityrevenue volumeshareholders and ultimate beneficial owners.

National ID card name

Cédula de Identidad y Electoral or cédula

National ID Photo

back of national id photo back

Does the country have Esignature Laws?

Law 126-02 on Electronic Commerce, Digital Documents and Signatures, dated September 29, 2002

E-sig law files

What year did the relevant AML laws and regulations become effective?

2002

Further details on AML regime

AML Law in the Dominican Republic (Law No. 72-02 and modifications on Anti-Money Laundering from Illicit Traffic of Drugs and Controlled Substances and other Serious Violations) was enacted on 4 Jun 2002. Subsequently in 2003, the implementation guideline No. 20-03 was issued.

Who is the regulator for AML controls for Banking

As a result of local AML Law No. 72-02, the National Committee Against Money Laundering was created and composed of: a) Superintendence of Banks (“SIB”); b) Ministry of Treasury; c) Attorney General of the Dominican Republic; d) President of the National Drugs Council; and e) President of the National Directorate for Drug Control.

Link to site

N/A

Other financial Services

This Committee is comprised of a Unit of Financial Analysis (“UAF”) to which the different organizations against money laundering in the Dominican Republic report to. The unit covers the banking sector, other financial services, and non-financial sectors. a) Superintendence of Banks of the Dominican Republic (“SIB”); b) General Directorate of Internal Revenue; c) Superintendence of Securities of the Dominican Republic ; d) Superintendence of Pensions of the Dominican Republic; e) General Directorate of Customs ; f) Specialized Attorney for the Persecution of Administrative Corruption; g) Central Directorate of Criminal Investigations ; h) Anti-money laundering unit of the Attorney General’s office of the Dominican Republic ; and i) Financial Investigation department of the National Directorate for Drug Control.

Website of Regulator

http://sib.gov.do/

Financial Sector regulator

N/A

Practical Guidance for AML

The Law and the implementation guideline Law have definitions of suspicious or unusual transactions that could be associated to money laundering. However, there are no other practical guidelines.

Is there a requirement to verify the identity of customers retroactively?

No.

Retroactive details

No.

Has the country been the subject of FATF mutal evaluation in the last 3 years?

Yes. The last assessment was in 2006 and a follow-up report was released in 2015

Are there minimum transaction thresholds (Y/N)

More details on minimum transaction thresholds.

No, according to the Newsletter No. 03-10 issued by the SIB, the due diligence process should be applied to all customers that carry out significant transactions (refer to the guide “Know your customer (KYC)” issued by the SIB

What are the requirements for customer identification information for individuals

Individuals: a) name and surname; b) date and place of birth; c) identification number; d) marital status; e) address and telephone number; f) main activity or occupation; and g) income (salary and other savings).

Details to be Collected on Corporates

Legal entities: a) company name; b) date of incorporation; c) address and telephone number; d) tax identification number; e) bylaws and other information; f) main activity; g) revenue volume; and h) shareholders and ultimate beneficial owners;

What are the high level requirements around beneficial ownership (identification and verification)?

Financial institutions must implement procedures to identify the ultimate beneficial owner of each transaction, review of records of the Company’s institution, obtain personal and bank references on each of

What circumstances are enhanced customer due diligence measures required?

A Corresponding Bank Customer who receives a substantial portion of their income from their businesses activity with high risk clients may present greater risks. A Corresponding Bank Customer who presents greater risks, PEPS and NGOs or foundations should be subject to a higher level of due diligence. See A15 and A14

How should FI's deal with Politically exposed persons

Financial institutions should apply additional due diligence procedures in the case of PEPs, their relatives and their associates. Financial institutions should: a) verify their reputation with public sources; b) investigate the source of the applicant’s funds before opening an account; c) anticipate the account’s activity; d) execute more continuous monitoring of the trade relationship, for a PEP to be accepted as a client; and e) if a PEP has control or directive functions in a correspondent bank, the entity should have knowledge of that person’s role in said entity. Banks issue a form of politically exposed persons twice per year (PEP01).

What enhanced due diligence must be performed for correspondent banking relationships?

According Article 8, section D of the instructive “Know your customer (“KYC”)” issued by the SIB, the due diligence process of a corresponding banking that involves greater risks will include: a) for all control units, verify the source of wealth of the proprietors, including their reputation/credibility in the market, as well as recent changes in ownership; and b) investigate the experience and competency of each member of executive commission, as well as recent changes in the structure of the Directorate.

Are relationships with banks who might be considered a 'shell' and without substance permitted?

Article 18 of local regulations for foreign investments and opening of border institutions issued in 2004 by the Monetary Board, prohibits banks from operations with shell banks.

In what circumstances is additional due diligence required for non face-to-face transactions and/or relationships?

Although this is not explicitly stated in AML Law 72-02, KYC establishes procedures to identify physical or legal persons who receive or transfer funds to clients. In addition, financial institutions have alerts for non-face-to-face transactions.

To whom are SAR's made? (suspicious activity reports)

Reports are made to the Financial Analysis Unit (UAF).

Link to website of SAR reporting

http://www.uaf.gov.do/

Other Suspicious or unusual transactions obligations.

Yes: a) cash transactions exceeding USD10,000 (IF01 form); b) electronic transfers up to USD1,000 (FD03-B form); c) daily report of remittance (FD03-A form); and d) transport of cash and bearer securities exceeding USD10,000 (FD04 form).

Are there any de-minimis thresholds below which transactions do not need to be reported?

USD10,000

Are there any penalties for non compliance with reporting requirements e.g. tipping off?

Yes, Article 22 of AML Law 72-02 establishes imprisonment of 2-5 years and a fine of 50-100 minimum wage salaries.

Are there any requirements (legal or regulatory) to use automated Suspicious Transaction monitoring technology?

No requirements from a legal or regulatory standpoint exist for the use of automated suspicious transactions.

Is there a requirement to obtain authority to proceed with a current/ongoing transaction that is identified as suspicious?

After a certain time, if there is no a response from UAF regarding the reported transaction, the institution should determine if it is appropriate to proceed or not with the transaction in question

Does the local legislation allow transactions to be monitored outside the jurisdiction?

According to Art. 61 and 62 of AML Law 72-02, the competent authority may submit and request assistance from the competent authorities of other States.

Is there a legal requirement for a bank’s external auditor/other external organisation to report on the bank’s AML systems and controls?

There is no legal requirement for a bank’s external auditor or other external organization to report on the bank’s AML systems and controls.

If an external report on the bank’s AML systems and controls is required: a) how frequently must the report be provided?

N/A.

To whom should the report on AML systems be submitted?

N/A.

Is an AML system part of the financial statement audit?

N/A.

What are the requirements for the content of this external report on a bank’s AML systems and controls? Does it require: a) sample testing of KYC files? b) sample testing of SAR reports? c) examination of risk assessments?

N/A.

Data Protection Laws And Personal Data

the definition of personal Data Protection does not cover any direct information about KYC. KYC is a guide issued by the Superintendence of Banks

Data Protection for Corporate Data

according to the Art. 4 of this law, the protection regime of personal data does not apply to data processing of corporations

Data protection for "sensitive Data" and additional protections.

sensitive data: personal data revealing political opinions, religious, philosophical or moral beliefs, trade union membership and data concerning health or sex life. This law aims at comprehensive protection of personal data in files, public records, data banks or other technical means of processing of data intended to give information, whether public or private, and to ensure the right to honor and protect individual’s privacy

Do any restrictions on the transfer of credit reports exist?

Additional prohibitions on the transfer of credit reports (for KYC and credit risk analysis purposes) is not considered in AML Law 72-02, however financial entities and other users are available to use credit

Regulator Acronym

SIB

Year of last FATF mutual evaluation

N/A

Field 67

legal personfinancial institution

National ID card details

ID card may be obtained at the age of 16, yet the official ID (which will allow the individual to vote) is obtained at 18.

Compulsory?

National ID source

https://en.wikipedia.org/wiki/C%C3%A9dula_de_Identidad_y_Electoral

Passport Photo

Is there a risk based approach

Legal Requirement

Requirement to proceed

Yes

requirement to use automated suspicious transaction tools

Who are SARS made to?

UAF

shell banks

Yes

EDD for correspondent banking

Yes

PDF of case law

Minimum transactions

DOP 230,250

Min transaction USD

5000

Data Protection for Corporates

If the AML laws and/or regulations became effective in the last 2 years, what were the requirements of the previous AML regime?

N/A

Non financial sector (e.g. casinos, high value goods etc.)

N/A

Does the country have a risk based approach?

Yes, the regulators promote a proactive approach that is based on risk. According to the Newsletter No. 014-12 issued by the SIB in Oct 2012, the Framework Supervision of Financial Entities based on risk was finally adopted

Where copies of identification documentation are provided, what are the requirements around independent verification or authentication?

Legal entities accepting the identification documentation should be sure that the copies of such documentation correspond to the originals, i.e. either a contractor’s internal verification or external authentication (notary, apostille) will be needed. Each institution also has its own policies and procedures to verify the documents and its copies.

Is there case law, other constitutional law or any other laws or regulations that may impact upon the transfer of information to this jurisdiction?

Law 172-13 of Personal Data Protection regulates the Personal Data Transfer; however according to Art. 89 of this law, in relation to any international agreement to which the Dominican Republic is a signatory (such as information exchange treaty between the Dominican Republic and USA, and the information exchange dispositions included in the treaties to avoid double taxation- currently signed with Canada and Spain- shall be governed by its dispositions.

List of case law, constitutional law or any other laws or regulations that may impact upon the transfer of information.

Article 56, Paragraph b) of the Monetary and Financial Law No. 183-02 establishes the legal obligation of banking secrecy and confidentiality.