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Dominican Republic Launches Groundbreaking AML Agreement in Foreign Exchange Sector

A significant breakthrough has been achieved in the Dominican Republic’s financial sector with the formation of a strategic partnership aimed at bolstering anti-money laundering (AML) compliance and improving transparency across the foreign exchange market. The Association of Compliance Officers of the Dominican Republic (AOCRD) and the Dominican Association of Foreign Exchange Brokers (ADOCAMBIO) have formalized a collaborative agreement intended to combat illicit financial flows and strengthen cooperation between compliance professionals and forex brokers. This initiative directly addresses pressing global AML standards and responds to recent domestic challenges in the fight against money laundering and terrorist financing.


Dominican Republic Launches Groundbreaking AML Agreement in Foreign Exchange Sector

Foreign exchange activities are widely acknowledged as vulnerable to financial crime, particularly in economies experiencing rapid growth and high volumes of cross-border remittances and cash transactions. The Dominican Republic, serving as a central node in the Caribbean financial system, has historically drawn scrutiny from global regulatory bodies for its dual role in facilitating both legitimate and suspicious financial movements. The country's financial authorities have demonstrated increasing resolve to meet international AML norms, particularly those established by the Financial Action Task Force (FATF) and its regional counterpart, the Caribbean Financial Action Task Force (CFATF).


The AOCRD-ADOCAMBIO alliance marks a decisive moment in the sector’s evolution. Through shared technical knowledge, continuous compliance education, and expanded channels for intelligence sharing, the agreement aims to enhance the country’s defenses against money laundering and fortify the resilience of the Dominican financial landscape. "This agreement represents an important milestone for our sector," said a representative from AOCRD, emphasizing the initiative’s role in unifying stakeholders under a shared compliance framework.


Money laundering risks in foreign exchange stem primarily from the transactional volume and speed, the use of cash, and complex international remittance networks. Criminals frequently exploit these characteristics to clean illicit proceeds and embed them into the legitimate financial system, thereby compromising public trust and macroeconomic integrity. In the Dominican Republic, the foreign exchange and remittance sector is not only crucial for supporting families and businesses but also presents persistent challenges for AML enforcement. Techniques such as breaking up large sums into multiple transactions, employing obscure ownership structures, and exploiting jurisdictional loopholes are common tactics observed in laundering schemes.


Regulators such as the Superintendencia de Bancos (SIB) and the Financial Analysis Unit (Unidad de Análisis Financiero, UAF) have stepped up their supervisory roles in response to these threats. Their efforts include stricter oversight of both financial institutions and non-financial businesses like forex operators. The new AOCRD-ADOCAMBIO framework aims to reinforce the first line of defense by ensuring that compliance professionals are not only aware of their duties but also capable of implementing AML protocols effectively.


The country’s current AML/CFT framework is anchored in Law No. 155-17, enacted in 2017. This legislation lays out the comprehensive requirements for combating money laundering and terrorist financing, targeting banks, brokers, and remittance providers. The law includes rigorous Know Your Customer (KYC) mandates, mandatory suspicious transaction reports to the UAF, enhanced scrutiny of politically exposed persons (PEPs), and meticulous recordkeeping requirements. Sector-specific guidance from agencies like the SIB further translates these mandates into practical expectations for compliance implementation.


The FATF and CFATF have consistently underscored the need for continued training, collaboration, and sector-specific guidance in maintaining a robust AML regime. The AOCRD-ADOCAMBIO partnership is crafted precisely in line with these priorities. By jointly developing training curricula, facilitating intelligence exchanges, and providing a structured platform for peer engagement, the initiative ensures that all actors — from national brokerages to smaller remittance agents — can keep pace with shifting threats and evolving regulatory benchmarks.


"This is about building a culture of compliance," said an ADOCAMBIO spokesperson, stressing the initiative’s long-term objective of embedding AML awareness into every level of foreign exchange operations. Through continuous professional development programs, the partnership offers detailed training modules that cover emerging laundering methodologies, customer due diligence (CDD), suspicious transaction detection, the use of technology in compliance, and the preparation of high-quality suspicious activity reports (SARs). These resources, combined with forums and webinars, aim to foster a vibrant community of compliance professionals who can collaborate and exchange insights in real-time.


In a global regulatory climate where public-private partnerships are becoming central to AML enforcement, the Dominican initiative is both timely and forward-thinking. The agreement is also set to drive transparency across the forex market — a critical factor in boosting public confidence and enabling effective regulatory oversight. Transparency mechanisms include clearer reporting lines, robust internal checks, and established communication channels between market actors and supervisory bodies.


Nonetheless, the Dominican Republic continues to grapple with systemic hurdles that can hinder effective AML implementation. Accessing accurate beneficial ownership information remains a major challenge, particularly when dealing with layered or offshore entities. While a national beneficial ownership registry has been introduced, it requires constant updating and robust industry engagement to be fully effective. Smaller brokers and remittance firms also struggle with limited resources, which can affect their ability to invest in sophisticated AML infrastructure or hire dedicated compliance staff.


Additionally, cross-border vulnerabilities persist, especially given the country’s position as a major recipient of international remittances. These flows bring with them exposure to overseas AML weaknesses, emphasizing the need for tighter coordination with foreign counterparts. The rapid growth of digital platforms, cryptocurrencies, and financial technologies introduces another layer of complexity, demanding that Dominican regulators continuously evolve their frameworks to keep pace with innovation.

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The AOCRD-ADOCAMBIO agreement seeks to directly tackle these issues through a pragmatic approach. The partners have committed to creating support mechanisms for under-resourced institutions, advocating for tighter agency cooperation, and developing industry-led best practices for handling fintech-related risks.


Looking ahead, the success of AML efforts in the Dominican Republic’s foreign exchange sector will rely heavily on stakeholder commitment. This includes active participation from government agencies, law enforcement, private firms, brokers, remittance providers, and the wider public. Key strategies gaining traction include regular engagement between authorities and market actors, integration of advanced monitoring technologies, international collaboration, and substantial investment in human capital.


Technology, in particular, holds great promise. The application of artificial intelligence, data analytics, and machine learning to transaction monitoring could transform the way suspicious patterns are identified and addressed. Joint training efforts will be instrumental in promoting the adoption and effective use of such technologies.


The Dominican Republic’s commitment to transparency and enforcement is clearly outlined in its National Risk Assessment (NRA), which identifies vulnerabilities across the financial sector and proposes actionable solutions. The AOCRD-ADOCAMBIO collaboration is a direct response to these findings, aiming to bridge critical gaps and reinforce systemic defenses.


"This agreement is not just a formal gesture — it’s a functional roadmap for enhancing financial integrity," one AOCRD official commented. With compliance capacity now receiving targeted attention and stakeholder cooperation at the forefront, the Dominican Republic is charting a course toward a more transparent and resilient foreign exchange market.


Although challenges remain, the country’s direction is unambiguous. By continuing to adapt, innovate, and collaborate, the Dominican Republic is positioning itself as a regional leader in AML compliance and financial transparency. The AOCRD and ADOCAMBIO’s joint commitment is a bold step forward — and a compelling model for the region and beyond.

By fLEXI tEAM


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