SANTO DOMINGO – In commemoration of “National Anti-Money Laundering Day” on October 29, we present seven things every real estate agent should know about Law 155-17, against Money Laundering and the Financing of Terrorism, which came into effect on June 1, 2017. Understanding the scope of this legislation will help you provide better advice to your clients and strengthen preventive policies against illicit activities in your real estate sales operations.
1-What is money laundering?
It is the process by which natural or legal persons and criminal organizations seek to give a legitimate appearance to illicit goods or assets derived from the preceding crimes indicated in this law;
2-When is a transaction suspicious?
These are complex, unusual, and significant transactions, whether carried out or not, as well as all patterns of unusual or non-significant but periodic transactions that do not have an obvious economic or legal basis, or that generate a suspicion of being involved in money laundering, a predicate offense, or the financing of terrorism.
3-What is an obligated party? (This category includes real estate agents))
An obliged subject is understood to be the natural or legal person who, by virtue of this law, is obliged to comply with obligations aimed at preventing, detecting, evaluating and mitigating the risk of money laundering and the financing of terrorism and other measures for the prevention of the financing of the proliferation of weapons of mass destruction.
4-What are non-financial obligated entities?
Non-financial obligated entities are considered to be natural or legal persons who carry out other professional, commercial, or business activities that, by their nature, are susceptible to being used in money laundering and terrorist financing activities. These include, among others: real estate agents when they are involved in transactions for their clients concerning the purchase and sale of real estate , and construction companies.
5-What are the penalties foreseen for the non-financial obligated entity?
Article 75 provides for the following administrative sanctions:
a) For very serious infractions: Fine of two million one Dominican pesos with 00/100 (RD$2,000,001.00) to four million Dominican pesos (RD$4,000,000.00);
b) For serious infractions: Fine of one million Dominican pesos (RD$1,000,001.00) to two million Dominican pesos (RD$2,000,000.00); c) For minor infractions: Fine of three hundred thousand Dominican pesos (RD$300,000.00) to one million Dominican pesos (RD$1,000,000.00).
6-¿What is the maximum amount the law sets as the cash limit for purchasing a home?
The law clearly states that if a person is going to buy a home, they cannot pay more than RD$1 million in cash. The remainder must be paid through the financial system.
7-Where to report suspected money laundering?
Individuals and sectors that identify suspicious activities should report them to the Financial Analysis Unit (UAF), which is the national center for the collection and analysis of financial information related to the crimes of money laundering, terrorist financing, and the financing of the proliferation of weapons of mass destruction, as well as for communicating the results of that analysis to the country's investigative and repressive authorities.
