do business in the Dominican Republic - Pellerano & Herrera

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DOING BUSINESS INTHE DOMINICAN REPUBLIC3. Office for Custody and Management of Seized Assets: This is an institutionattached to the National Committee Against Money Laundering. Its main purposeis to guard, administrate and sale assets seized because of the perpetrationof any of the offenses provided in the law. It is entitled to enter into agreementswith private companies, whether national or foreign, and to manage the seizedassets.c) OffensesFor the purposes of Law 72-02, any person that knowingly makes any of the followingtransactions with goods, funds or instruments obtained from a seriousoffense perpetrates money laundering:To exchange, transfer, transport, purchase, hold, use or manage such property;To hide, conceal or prevent that the real nature, origin or movement of therights over such property be determined.To associate, assist, facilitate or advise for the perpetration of any of theprevious activities.d) SanctionsPersons committing the crime of money laundering shall be punished withimprisonment of 3 to 20 years and fines of 50 to 200 minimum salaries, dependingon the particular circumstances of the case and the occurrence of any aggravatingfactors such as the participation of organized criminal groups, the associationof persons to commit the crimes, and others.Precautionary Measures. Use of Seized PropertyAny seized funds and goods shall be inventoried and transferred to the Officefor Custody and Management of Seized Property.Under its Article 9 and following, the law provides that when a money launderingcase is under investigation, the competent judicial authority may at any timeorder the provisional seizure of property in order to ensure the preservation ofthe goods, products or instruments related to the offense until a final judgmenthas been rendered.Goods in danger of being deteriorated or that require permanent action for theirpreservation, shall be sold at public auction or bid provided the owner of theproperty does not object.The sums obtained from the sale shall be placed onDeposit Certificates of the State-owned commercial bank (“Banco de Reservasde la República Dominicana”) until a final judgment has been rendered.Confiscation of PropertyPursuant to Articles 31 and following of the law, when there has been infringement,the court shall order the confiscation of the goods, products or instrumentsrelated to the crime or the payment of a fine for the same value.In the case of confiscated property obtained from illegal drug-trafficking, theNational Committee against Money Laundering shall use it as follows:15% for institutions dedicated to rehabilitation of drug addicts;30
Pellerano & HerreraAttorneys at law50% for the Drug Control Office;35% for the National Drug Council, to prevent and to educate against drugconsumption.Persons Subject to the LawUnder Article 38 and following, the following persons are subject to the law:Financial entities legally regulated;Physical or legal persons dedicated to brokerage of securities or papers,investments or futures;Physical or legal persons acting as intermediaries for foreign exchange(exchange agents,etc.);Central Bank of the Dominican Republic;Casinos;Activities of real property promotion or sale;Insurance companies and agents;Any other business activity that due to its nature may be used for moneylaundering.ObligationsThe persons indicated above must comply with the following obligations,among others:1. To identify their clients with the identity card or passport;2. To inform, within the first 15 days of the month, the Financial Analysis Unit,via Superintendence of Banks for institutions under its supervision,of all cashtransactions exceeding US$10,000;3. To keep for at least ten years the records of the transactions and the identityof the persons or companies that have made the transactions or that haveentered into business relations with the entity;4. To maintain confidentiality by not saying to the client or other parties thatthe information has been forwarded to the competent authorities;5. To create appropriate procedures or bodies for internal control and managerialcommunication in order to avoid and prevent the realization of moneylaundering activities.It should be noted that the legislation on money laundering provides forinternational cooperation. It establishes that the court or competent authorityshall through the appropriate channels cooperate with foreign courts orcompetent authorities in order to provide and receive assistance regardingmoney laundering activities related to illegal drug-trafficking and other seriousoffenses, in accordance with the relevant legal provisions and norms ofinternational law.31
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