do business in the Dominican Republic - Pellerano & Herrera

DOING BUSINESS INTHE DOMINICAN REPUBLIC16Three permanent members (the Governor of the Central Bank, who presidesover it, the Minister of Finance and the Superintendent of Banks)Six members designated by the President of the Republic for a renewabletwo-year-period, not being able to be removed of their posts withoutjust cause, and removal may only be decided by majority vote of _ of themembers of the Board.b) Central BankThe Central Bank is a public entity of Public Law with its own legal personality.As the only issuing entity, it is granted autonomy under the Constitution. It hasthe function to execute monetary, exchange and financial policies, pursuant tothe Monetary Program approved by the Monetary Board and by using theinstruments provided in the law.c) Superintendence of BanksThe Superintendence of Banks has the mission to carry out, with full functionalautonomy, the supervision of financial entities, in order to see to the complianceof their legal obligations, requiring them to make the relevant risk provisions, tocomply with the legal provisions and to impose sanctions. It has also the attributionto propose the authorizations and revocations of financial entities that theMonetary Board has to evaluate.d) Guarantees of AutonomyLaw 183-02 sets forth the necessary safeguards to ensure that the Monetary andFinancial Administration carries out its functions in an independent andautonomous manner.Firstly, the Administration is granted the resources required to execute its functionswith budgetary and financial independence (Article 5).Furthermore, the law seeks to strengthen the professionalism of theAdministration's human resources through a personnel regime that focuses onmerit and professional capability, includes rules intended to ensure impartialityin the exercise of their functions, reaffirms the confidentiality duty and creates asevere regime of personal financial liability in the event of misappropriation offunds (Articles 6-8).In addition, the law provides special attention to the professionalism and independenceof the Administration's higher organs in order to prevent politicalappointments and conflicts of interest. For such purpose, it sets out in detail theselection criteria for a fixed time-period of the members of the Monetary Board,its compensation regime and grounds of removal, creating furthermore statutesfor the Central Bank's Governor and the Superintendent of Banks.In this same context, the mechanisms of monetary transparency, through whichthe Administration is obliged to inform the public of its activities, seek to ensurethat the Administration performs properly with its duties (Articles 22 and 23).Public protection against the Administration's decisions is reached by virtue ofnew administrative and litigious-administrative appeals that may be filed by