Globally, money laundering represents between 2 and 5% of Gross Domestic Product (GDP), as stated in a workshop organized by the Association of Multiple Banks of the Dominican Republic.
SANTO DOMINGO. – Money laundering has economic and social consequences, risks to the reputation of the Dominican Republic, social costs, weakening of financial institutions, and tax losses, warned specialists from the financial sector who spoke during a workshop for journalists, organized by the Association of Multiple Banks of the Dominican Republic (ABA).
One of the presenters, Línder Paulino, Division Manager of the AML/CFT Program at Banco Popular, pointed out that while the Dominican Republic is not on any international watch list, Haiti is on the Financial Action Task Force (FATF) Grey List, along with other countries such as Jamaica and the Cayman Islands. He stated that this proximity is reason enough for international organizations to be vigilant regarding Dominican territory. He added that it also warrants continued efforts by the government and society to detect and mitigate this crime in its various forms.
Ramón González, president of the ABA's Money Laundering Committee and an executive at Banesco, indicated that among the crimes subsidized by money laundering in its different forms are counterfeiting, drug trafficking, and human trafficking.
He pointed out that among these forms of crime, the most common include the complicity of public officials, shell companies, cash transactions, concealment of the ultimate beneficiary, and "smurfing." He explained that the latter involves moving a considerable amount of money through different users in small amounts, in an attempt to avoid detection by the financial system.
In the workshop “The Role of Commercial Banking in the Prevention of Money Laundering,” he pointed out that all these practices are used by criminals to undermine the system and economic growth, causing enormous losses to individuals and businesses worldwide. He noted that money laundering represents between 2% and 5% of the Gross Domestic Product (GDP) globally, that is, around 1.6 trillion dollars, according to data from the United Nations Office on Drugs and Crime (UNODC).
For her part, Michelle Cruz, Vice President of Compliance at Banco BHD, stated that given the increasing threats to individuals posed by money laundering, it is imperative to constantly update procedures to mitigate and reduce this crime. In this regard, she emphasized that commercial banks, as Obligated Entities, have a compliance structure, implement policies and procedures, and provide ongoing staff training to identify potential users suspected of engaging in this crime.
He indicated that, similarly, the financial sector also implements indicators for measuring the effectiveness and reviewing controls of all its processes; provides risk-based training, establishes high standards of suitability with its employees at all levels, and conducts external audits to review the effectiveness of the program.
In that sense, for Víctor Bautista, CEO of Mediáticos, the investigative work of the journalist is vital in order to prevent money laundering, pointing to his ability to question from official sources, thanks to the fact that journalistic work can not only expose these illicit issues, but also dissuade public opinion regarding the seriousness of the problem.
The workshop “Role of multiple banking in the prevention of money laundering”, held at the Intercontinental Real Hotel, was attended by journalists from print, digital, television and radio media from across the country.
