Legislation

In order to regulate the economic behavior of a country, as well as to manage the production, distribution, exchange and consumption of material goods throughout the stages of development of human society, countries implement resolutions, regulations and laws as a tool to achieving the effective management of politics in society. 
In the Dominican Republic, the State actively encourages the creation and implementation of economic laws with the objective of collaborating with the established objectives
In this section we describe some of the more important and noteworthy economic legislation from our country.

Regulations

Currency Exchange Regulation

The Currency Exchange Regulation was introduced in February 2004 by the Monetary Commission of the Central Bank of the Dominican Republic (BCRD).  It has as its objective to “establish the rules, policies and procedures that regulate foreign currency operations within the national territory, in compliance with that stated in Monetary and Finance Law No.183-02, issued on the 21st of November 2002, to contribute to the correct working of the exchange market, in an environment of competition and efficiency, to preserve stability and the balance of payments in the country.

See Currency Exchange Regulations >> (PDF)

User Protection Regulations for the Financial Services

The User Protection Regulation for the Financial Services was introduced in January 2006 by the Monetary Commission of the Central Bank of the Dominican Republic. Its objective is to “establish the criteria that will be used to the determine alleged cases of unfair contracts and to ensure that financial contracts clearly reflect the contractual obligations of both parties as well as their rights. It also aims to create complaints services within financial mediation groups, and the Supervisory body for Banks, in relation to that which is stated in Articles 52 and 53 of Monetary and Financial Law No.183-02, issued on the 21st of November 2002."

See the User Protection Regulation for the Financial Services >> (PDF)

Laws

Monetary and Financial Law

In December 2002, the National Congress of the Dominican Republic approved Law No. 183-02 that passed the Monetary and Financial Law.  This Law establish “ the regulatory system of the monetary and financial system across the whole national territory, and is only set in place by the Monetary and Finance Administration. The regulation of the system comprises policy creation, regulation, implementation, supervision and the application of sanctions, within the terms establish by this Law and the regulations created for its implementation.

The regulation of the monetary system will have as its objective to maintain price stability, which is indispensable for national economic development. The regulation of the financial system will have as its objective to oversee compliance with the conditions of liquidity, solvency and management that must be fulfilled at all times by financial mediation organizations as established by the Law,  in search of the smooth running of the system within an environment of competition, efficiency and free market”.

See Monetary and Financial Law >> (PDF)

Stock Market Law

In May 2000, the Congress of the Dominican Republic approved Law No. 19 with the name Stock Market Law. The objective of the law is “to promote and regulate the stock market, looking for an organized efficient and transparent market that contributes to the economic and social development of the country. The stock market comprises the supply and demand of stocks representative of capital, credit, debt or commodities. As such it includes derivatives, either based on stocks or commodities.”

See the Stock Market Law >> (PDF)

Money Laundering Law

This regulation has the following objectives: (a) to define the behaviors that typically represent the laundering of assets from certain illicit activities or other offences related to this, cautionary measures and the judicial measure through which the relevant Court in the Dominican Republic will grant judicial assistance about the matter, by virtue of the Bilateral and Multilateral treaties related to this; (b) to establish the necessary measures and instruments to prevent and detect the laundering of assets, and identify the individuals obligated and clarifying those obligations; (c) to create a public entity with the fundamental objective of analyzing financial information taken from the obligated individuals; and (d) and to determine penal and administrative sanctions deriving from non-observance

See Money Laundering Law>> (PDF)

Law 16-95 regarding Foreign Investment

This Law regulates Foreign Investments in the Dominican Republic. In this way the Dominican State “recognizes that foreign investment and the transferal of technology contribute to economic growth and the social development of a country, while favoring the creation of jobs and foreign currency, and promoting the process of capitalization and bringing efficient methods for production, marketing and administration.”

See Law 16-95 regarding Foreign Investment >>(PDF)

Resolutions from the Monetary Commission (JM)

The Financial and Monetary Administration is made up of the Monetary Commission, the Central Bank and the Regulatory Body for Banks, with the Monetary Commission having superiority over these two institutions.

The Monetary Commission consists of three (3) permanent members and six (6) members designated for a fixed period of time. The permanent members are: the President of the Central Bank, who presides, the State Minister for Finances and the head of the Regulatory Body for Banks.

Among the many functions that the Monetary Commission has are resolutions, which are monetary and financial regulations with the objective of ensuring compliance with Law No.183-02 or the Monetary and Financial Law.

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