do business in the Dominican Republic - Pellerano & Herrera

Pellerano & HerreraAttorneys at lawtion of operations that are allowed, subject to authorization and prohibited, prudentialnorms, bank transparency, forms of supervision, bank regulation and liquidation,and sanctions.Title IV on “Additional, Final,Transitional and AbrogationProvisions”These provisions enable to connect the law with other related areas and providethe necessary rules to conform the current situation to the new standards.PURPOSE OF REGULATIONThe law provides that the purpose of monetary regulation is to maintain pricestability, which is indispensable for national economic development, while thepurpose of financial regulation is to see to the compliance with the liquidity, solvencyand management conditions set forth in the law by entities of financialintermediation, in order to ensure the normal functioning of the system in anenvironment of competition, efficiency and free market (Article 2).15MONETARY AND FINANCIAL ADMINISTRATIONLaw 183-02 adopts the organization concept of Monetary and FinancialAdministration, which includes the Monetary Board, the Central Bank and theSuperintendence of Banks, and which in an organized manner, is granted theexclusive attribution to regulate the monetary and financial system throughoutthe national territory.a) Monetary BoardThe Monetary Board is under the Constitution the regulatory body of the financialand monetary system, and the higher organ of the Central Bank and theSuperintendence of Banks.It has the following functions:To determine the nation's monetary, exchange and financial policies.To adopt monetary and financial regulations for the application of the law.To grant and revoke authorizations to operate as financial entity, and toauthorize mergers, acquisitions, etc. among entities.To designate, suspend or remove employees of the Central Bank andSuperintendence of Banks.To decide on appeals filed against decisions of the Central Bank and theSuperintendence of Banks.The Monetary Board is also entitled to adopt regulations of general applicationto regulate the monetary and financial system. In this regard, the law improvesthe conditions of exercise of the faculty of regulation of the Board, which is subordinatedto the law.The regulatory measures of the Board may be subject to the control of the courtwhen appeals are filed against a decision issued by virtue of such regulations.This body shall be composed as follows: