On the fourth (4th) of November two thousand twenty-five (2025), the Directorate of Casinos and Games of Chance of the Ministry of Finance and Economy issued Resolution 217-2025, which regulates the Prevention of Money Laundering and Terrorist Financing with a risk-based approach for the obligated parties under its supervision. This resolution repeals Rule 204-17 of 2017 and introduces important changes that strengthen the Anti-Money Laundering and Terrorist Financing prevention regime for the gaming sector, granting obligated parties a period of six (6) months from the publication of the resolution to adapt their Compliance Manuals. Among the most important changes, we highlight:

Scope of application. Rule 217-2025 expands the scope of application, expressly establishing its application to:
Casinos of Games of Chance and Slot Machine Gaming Rooms, with their respective responsible administration.
Online or internet games of chance.
Virtual games of chance.
Electronic lottery concessionaires.
Lottery betting shops.
Sports betting shops.
Charitable and non-charitable raffles.
Traditional and electronic bingo halls.
Betting companies and horse-racing agencies.
National Lottery.
All entities that engage in games of chance in any modality.

  1. General obligations of operators. It provides that operators licensed to offer games of chance must comply with the following general obligations:

Design and implement a Compliance Program for the Prevention of Money Laundering, Terrorist Financing and Proliferation of Weapons of Mass Destruction (AML/CFT/CPWMD) with a risk-based approach (RBA).
Design policies and procedures to assess their risks of Money Laundering, Terrorist Financing and the Proliferation of Weapons of Mass Destruction and mitigate them.
Register with the FIU for the purpose of submitting the corresponding reports.
Register the Compliance Officer and their alternate with the Directorate of Casinos and Games of Chance.
Promote an organizational culture of good practices, ethics and compliance with Law 155-17.
Maintain a record of prize winners.
Respond to express requests from the DCJA and the FIU.

Additionally, it establishes the obligation for all operators to periodically conduct and document a comprehensive assessment of the risks of Money Laundering, Terrorist Financing and Proliferation of Weapons of Mass Destruction, at intervals no longer than eighteen (18) months or sooner if significant changes occur in their operations. A period of ninety (90) calendar days from the entry into force of the regulation is granted for operators to conduct the first comprehensive risk assessment.

For small-scale operators, the resolution establishes obligations such as a simplified risk assessment methodology accompanied by a notarized sworn statement signed by the owner or legal representative of the business, which must be submitted within a maximum period of ninety (90) days from the entry into force of the resolution and must be updated annually.

  1. Regarding the AML/CFT/WMD Compliance Program.

It establishes mandatory adherence to the AML/CFT/WMD Compliance Program for all individuals and legal entities associated with the Operator, including all employees, officers, members of the Board of Directors, shareholders, partners and license or authorization holders.
If the license holder hires a responsible administrator, both parties must sign an agreement defining the terms and conditions to ensure effective coordination in the implementation and supervision of the AML/CFT/WMD Compliance Program, which must include each party’s responsibilities regarding the identification and assessment of inherent risks to casino operations, the administrator’s obligation to design, implement and maintain policies, procedures and internal controls to mitigate such risks, oversight by the license holder of contractual obligations related to AML/CFT/WMD prevention, cooperation with authorities in investigations of possible AML/CFT/WMD cases, and mechanisms for effective communication and coordination between the license holder and the responsible administration.
It strengthens the policy for knowing shareholders, board members, employees and officers, establishing the obligation to approve policies that allow not only identifying shareholders, board members and employees, but also conflicts of interest and the likelihood of their involvement in a possible AML/CFT/WMD operation.
It establishes the number of annual trainings required for the Compliance Officer, Board members, employees and their specialization based on their relationship with clients.
It sets requirements for the Operator’s AML/CFT/WMD trainer.

• Compliance Structure.

The regulation establishes the obligation to create a compliance structure within the Obligated Party, which may include the Compliance Area, the Compliance Committee and the Compliance Officer, where applicable.

Compliance Officer and their alternate:
Regarding the Compliance Officer, the suitability requirements for their selection and training are strengthened. It establishes the mandatory designation of an alternate Compliance Officer, who must meet the same requirements as the Compliance Officer.

They must reside in the Dominican Republic during the exercise of their duties and may not simultaneously perform their functions in different companies, regardless of whether they engage in the same commercial activity, except for operators belonging to the same economic group.

Both the Compliance Officer and their alternate must possess academic, technical and practical experience in the prevention of Money Laundering, Terrorist Financing and Proliferation of Weapons of Mass Destruction. For electronic lotteries, casinos, slot machine rooms, online gaming and sports betting shops, a minimum experience of two (2) years is required.

The regulation also establishes disqualifying criteria for appointment as Compliance Officer or alternate, including economic violations, money laundering, organized crime, removal from public office due to disciplinary misconduct, disqualification from public service, or prior declaration of unsuitability by the Directorate of Casinos and Games of Chance. To prove the latter, the candidate must submit a sworn statement certifying they have not been removed from public office for disciplinary reasons nor convicted with temporary or permanent disqualification from public service.

Additionally, the Directorate of Casinos must validate candidates proposed by Obligated Parties for Compliance Officer or alternate positions through the submission of the Criminal Record Certificate, sworn statement of non-dismissal and other documents. However, the resolution does not specify the timeframe in which the Directorate must respond to validation requests, which should occur prior to hiring due to the obligations and penalties arising once the employment relationship begins.

Compliance Area.
It establishes the obligation to create a Compliance Area or Department for operators with more than fifty (50) employees and annual gross sales exceeding SIXTY-ONE MILLION FIVE HUNDRED FIFTY-THREE THOUSAND ONE HUNDRED EIGHTY-SEVEN PESOS (RD$61,553,187.00). This Compliance Area will be responsible for ensuring compliance with the responsibilities assigned to the Compliance Officer, serving as strategic and operational support for the proper implementation of the Program.

Operators below these thresholds may allow the Compliance Officer to assume the functions without creating a Compliance Department unless the Directorate of Casinos identifies significant risks or inconsistencies through audits or inspections.

To remain under this regime, Operators must submit within the first one hundred twenty (120) days of each year a notarized sworn statement accompanied by:

Financial Statements for the previous fiscal year, certified by a Certified Public Accountant (CPA).
Official DGII form supporting the reported sales.
Certificate issued by the Social Security Treasury (TSS) or the Ministry of Labor verifying the average number of employees in the previous fiscal year.

Compliance Committee.
Casinos, Slot Machine Rooms, Online Games of Chance, and operators required to form a Compliance Area based on employee count and gross sales must form a Compliance Committee. In other cases, the functions may be assumed by Senior Management in collaboration with the Compliance Officer.

The Compliance Committee must consist of an odd number of members, at least three (3), with voice and vote:

One member of the Board of Directors or Senior Management.
A senior executive of the Operator.
A senior executive of the operations area or similar.

This committee must meet at least quarterly.

  1. Code of Ethics.

Guidelines are established to strengthen the Code of Ethics and a culture of compliance, such as the management and protection of confidential information of both the operator and the client, identification and management of conflicts of interest, and the commitment to implementing a responsible gaming program.

A specific section dedicated to player protection is established to ensure the proper creation and distribution of gaming products, guarantee privacy and fair treatment of players, protect minors and individuals with mental health issues, among others.

  1. Internal Audit.

Operators with more than fifty (50) employees or annual gross sales exceeding RD$61,553,187.00 must conduct a comprehensive internal audit. If the Obligated Party does not have an Internal Audit Department, the highest governing body of the company must designate the person(s) responsible for conducting internal audits. Such individuals must have held their academic degree for at least five (5) years and possess an accredited certification or a minimum of two (2) years of experience in auditing or internal controls related to AML/CFT/WMD.

The designation of the external auditor must be notified to the Directorate of Casinos within fifteen (15) business days after the appointment.

Operators not meeting the thresholds are exempt from conducting internal audits. However, they must conduct a simplified annual review of the effectiveness of the Compliance Program.

  1. External Audit.

It establishes the obligation for all operators to conduct an independent external compliance audit at least every two (2) years, unless specifically required otherwise by the Directorate of Casinos and Games of Chance. For small-scale operators, the external audit report may consist of a compliance opinion issued by a Certified Public Accountant (CPA) or a professional qualified in Money Laundering Prevention.

Operators of Single-Draw Raffles are exempt when the activity is limited to that draw and not combined with permanent gaming modalities.

Criteria are established for the hiring of external auditors, and a period of twelve (12) months from the entry into force of Rule 217-25 is granted for operators to submit the first external audit report.

  1. Customer Identification.

A threshold of US$1,000.00 is established for customer identification when:

Players request chip exchanges, virtual credits, winnings or any other monetary value equal to or greater than the threshold.
Online game players acquire credits for participation or withdraw funds from gaming accounts, whether in credits or any other authorized payment method for an amount equal to or greater than the threshold.
Winners of prizes from any type of game or draw offered by operators receive an amount equal to or greater than the threshold.

Customer identification, beneficial ownership verification and understanding of the nature of the commercial activity may be delegated to another operator only when part of the same economic group. However, responsibility remains with the party delegating the task.

Commercial relationships are prohibited when the operator cannot perform customer identification, verification or due diligence.

Regarding Online Games of Chance, operators must establish additional due diligence measures such as:

Customer verification through authentication technologies.
Detailed monitoring of betting patterns and unusual transactions.
Ongoing monitoring of gaming activities to detect behaviors indicating AML/CFT/WMD risk.
Ensuring their platforms are not used for concealing or transferring illicit funds by implementing robust early warning systems and reporting to the competent authorities.

Risk-based due diligence must be applied not only to clients and employees but also to junkets, agencies or authorized electronic lottery sales points and the National Lottery, in the following cases:

When establishing or attempting to establish commercial or professional relationships;
When there are suspicions of money laundering, terrorist financing or proliferation of weapons of mass destruction;
If there are doubts regarding the authenticity of customer or beneficial owner data;
When transactions reaching or exceeding three thousand US dollars (US$3,000.00) or equivalent in national or foreign currency occur within a twenty-four (24)-hour period.

  1. Prohibition of Cryptocurrency Use.

Operators are prohibited from accepting cryptocurrency, crypto-assets, NFTs (non-fungible tokens), or electronic wallets (e-wallets) not recognized by Dominican monetary and financial authorities for the payment of bets, draw tickets and prizes, or when such instruments present a money laundering risk, as determined by the Directorate of Casinos and Games of Chance of the Ministry of Finance and Economy. Payment into foreign bank accounts is exceptionally permitted for prize payments to international casino clients who demonstrate they are not residents of the Dominican Republic.

  1. Prohibition of Commercial Relationship.

In addition to cases where due diligence cannot be performed, operators are prohibited from initiating or continuing commercial relationships when they provide direct financing for players or bettors to continue participating in games of chance. This prohibition extends to related or associated companies, as well as any person providing services to them. Exceptions include:

Free promotional bonuses up to US$25.00 once per day per player.
Bonuses linked to the initial deposit of up to 25% of the deposited amount, not exceeding US$250.00 or equivalent.
Promotional chips that cannot be exchanged for cash.
Promotional credits that cannot be withdrawn as cash under any circumstances.

  1. Registry of Prize Winners (RPW).

Operators must create a registry of payments and prizes awarded by Casinos, Online Games of Chance, Electronic Lottery Concessionaires, the National Lottery, Lottery Betting Shops, Sports Betting Shops, raffles, Bingo halls and any gaming modality. The registry must contain the following information and be available to the Directorate of Casinos and Games of Chance at all times:

a. Customer identification information.

b. Detailed description of the prize.

c. Total value or amount of the prize, if applicable.

d. Type of currency used for payment.

e. Exact date of delivery or payment.

  1. Submission of Statistical Information. Operators must submit statistical information quarterly to the Directorate of Casinos and Games of Chance within the first ten (10) business days after each quarter, including:

Operating volume including gross income segmented by month and type of customer;
List of players whose transactions, winnings or not, amounted to US$1,000.00 or equivalent, including customer identification data, risk classification and transaction date;
List of prize winners receiving US$1,000.00 or equivalent, including customer identification, transaction date, amount wagered and won, and customer risk classification.
Information regarding linked employees and terminated employees.
Information on products and services offered, including quantity and type.
Number of Suspicious Transaction Reports (STR) and Cash Transaction Reports (CTR) submitted to the FIU, by month, by establishment, by point of sale, without detailing client information or reasons.

Online game operators must submit statistical reports semiannually within the first ten (10) business days after each semester, including, in addition to the above, gaming sessions, accumulated transactions and net winnings.

Operators within an economic group must submit individualized information for each establishment.

  1. Registration of Economic Groups.
    Operators that qualify as an economic group must register before the DCJA, providing information regarding the group’s structure and composition, as well as the identification of parties directly or indirectly linked through ownership, management, control, equity participation, or family ties. Once recognized as an economic group, they must implement an AML/CFT Compliance Program with a Risk-Based Approach adjusted to the size and risk level of the group as a whole.

Pursuant to Resolution 217-2025, an economic group is defined as a set of natural or legal persons linked directly or indirectly through ownership, equity participation, management, administration, kinship, or control, whose economic and financial activities are guided by common interests and carried out in a coordinated manner to achieve shared objectives.

The registration must be completed within no more than thirty (30) calendar days following the issuance of Resolution 217-2025.

The regulation does not require that the economic group be previously classified as such by the Dominican Tax Authority (DGII). However, it grants the Directorate of Casinos and Games of Chance the authority to classify or reclassify an operator as an economic group ex officio.

  1. Supervisory Unit.
    The Anti-Money Laundering Prevention Department of the Directorate of Casinos and Games of Chance is designated as the unit responsible for supervising compliance with Resolution 217-25.

  2. Payment of Prizes.
    Payments made by the operator through checks or other negotiable instruments, related to the payment of prizes, must be issued in the name of the winning customer. The issuance of bearer checks, checks payable to third parties, and the splitting of payments is strictly prohibited.

Important deadlines to consider:

  • Six (6) months from the publication of the Resolution to update Compliance Manuals in accordance with Regulation 217-25.

  • Thirty (30) calendar days from the issuance of the Resolution to request registration as an economic group.

  • Ninety (90) calendar days from the effective date of the Regulation to conduct the first comprehensive risk assessment.

  • Twelve (12) months from the effective date of Regulation 217-25 to submit the first external audit report.

  • During the first one hundred and twenty (120) days of each year, a notarized Sworn Statement must be submitted, accompanied by:

    • Financial statements certified by a CPA,

    • The form filed with the DGII supporting annual sales,

    • TSS certification.
      This applies to companies with fewer than 50 employees and annual gross sales below RD$61,553,187.00 seeking exemption from establishing a dedicated compliance department.

  • Submission of statistical information to the Directorate of Casinos and Games of Chance within the first ten (10) business days following the end of each quarter.

The Constitutional Court (CC) declared Law No. 396-19 unconstitutional, which regulated the granting of public force to execute conservatory measures and judgments concerning movable and immovable property. The decision, contained in ruling CC/0743/25, is based on a direct action of unconstitutionality filed by Genaro A. Silvestre Scroggins, Franklin José Zabala Jiménez, and the National Association of United Bailiffs (ANAU), determining that the law was enacted in violation of constitutional procedures and fundamental principles of the Dominican legal order.

Grounds for the Constitutional Decision

The Court concluded that Law 396-19 was processed as an ordinary law, even though, by its content and subject matter, it should have been approved as an organic law, in accordance with Article 112 of the Constitution and the precedent established in ruling CC/0110/13. This formal defect was decisive for declaring its unconstitutionality.

The ruling also reaffirmed that the power to execute judgments belongs exclusively to the Judiciary, pursuant to Article 149, paragraph I of the Constitution, and not to the Public Prosecutor’s Office. In this regard, the Court found it unconstitutional to assign to the Public Prosecutor’s Office the authority to authorize, direct, or suspend the use of public force in the execution of judgments or conservatory measures.

The CC specified that the control and granting of public force are part of the judicial function, and therefore must be exercised solely by competent judges or courts. The participation of the Public Prosecutor’s Office, the ruling noted, must be limited to prosecuting criminal acts that may occur during enforcement procedures, without the power to authorize or direct the use of force.

Effects and Exhortation to the National Congress

In its decision, the Constitutional Court urged the National Congress to enact a new law that corrects the identified formal unconstitutionality and aligns the regulation with constitutional parameters. To allow this legislative adjustment, the CC postponed the effects of the declaration of unconstitutionality for two years from the date of notification of the ruling.

Draft of a New Organic Law on the Granting of Public Force

In compliance with ruling CC/0743/25, a draft “Organic Law Regulating the Granting of Public Force to Carry Out Conservatory and Executory Measures” was submitted to the Senate of the Republic by Senator Cristóbal Venerado Castillo (PRM-Hato Mayor) on September 15.

This legislative initiative seeks to correct the defects identified by the Constitutional Court, ensuring that the new regulation is processed as an organic law and that the power to enforce judicial decisions rests exclusively with the Judiciary. The bill removes all references to the Public Prosecutor’s Office as the authority responsible for granting public force, replacing it with competent courts.

Essential Content of the Legislative Proposal

The bill establishes that the court that issued the decision shall be the body authorized to grant the use of public force for the execution of judgments, enforceable titles, or conservatory measures, upon request by the interested parties. The regulation applies to the execution of measures involving movable and immovable property, as well as seizures, evictions, and other actions requiring public force assistance.

The draft law complies with Article 112 of the Constitution and the precedent set by ruling CC/0110/13, reaffirming that the exercise of judicial authority belongs solely to the Judiciary. It also eliminates the “prohibition of ex officio conciliation” clause contained in Law 396-19, which had prevented members of the Public Prosecutor’s Office from promoting conciliations or mediations in cases involving requests for public force assistance.

Conclusion

The declaration of unconstitutionality of Law 396-19 and the subsequent submission of the draft organic law represent a significant step toward strengthening the separation of powers and reinforcing the Judiciary’s authority. This legal evolution seeks to ensure compliance with the constitutional principle that the enforcement of judgments is a judicial function, and that the use of public force in such processes must remain under the courts’ control, in full adherence to the Dominican constitutional order.

The Joint Committee on Occupational Health and Safety (CMSST) is a mixed body composed of employer and employee representatives in equal proportion. Its main function is the preventive management of workers’ health and safety, in order to maintain the productive process and ensure the continuity of the company’s operations and processes.

According to Regulation No. 522-06: “ALL companies in ALL sectors with 15 or more employees must form a Joint Committee on Occupational Health and Safety. Those with fewer employees must appoint a Health and Safety Coordinator with similar functions to those of the Joint Committee.”

Regulation 522-06, dated October 17, 2006, on Occupational Health and Safety, governs the conditions under which productive activities must be carried out nationwide. Its purpose is to prevent accidents and health damages arising from work, related to work activity, or occurring during work, while minimizing the causes of risks inherent to the work environment.

To this end, companies must create an Occupational Health and Safety Program, which must be developed by an expert advisor, updated, and submitted every three (3) years to the Ministry of Labor. Each branch, subsidiary, or jurisdiction must have a committee or coordinator, as applicable.

The functions of the CMSST include:

  • Prevention Planning
  • Training
  • Information Dissemination
  • Inspection
  • Health Promotion
  • Management Oversight
  • Investigation of Accidents and Occupational Illnesses
  • Accountability to Workers
  • Accountability to the Ministry of Labor

Regarding its structure, in accordance with Regulation No. 522-06, the number of people who make up the committee depends on the size of the workplace and the locations where work is carried out. It is essential that the committee is advised by a workplace risk prevention technician.

The CMSST follows a hierarchical structure that includes a President and a Secretary, along with as many members as deemed necessary based on the company’s size.

The employer’s representatives must be appointed by management, while the employee representatives must be designated by the union (if one exists) or elected by the employees themselves.

According to recommendations from the Ministry of Labor, the CMSST advisor must meet the following profile:

  • As an advisor, they must be the external expert who carries out a diagnosis (an external perspective) of Occupational Health and Safety (OHS) and provides recommendations.
  • As a mentor (internal to the system), they should be an employee of the company who supports the implementation of the recommendations.
  • As a coach, they combine a global vision, leadership to drive change, strategic analysis, and support for new tactics. This occurs within an integrated, coherent, and continuous system. Each coaching action contributes to the daily development of the CMSST members’ competencies, aligned with performance measurement of the Occupational Health and Safety Management System (OHSMS).

Once the committee is established, meetings must be held monthly, with participants being notified in advance. A meeting minute must be prepared for each session and sent to the General Directorate of Hygiene and Industrial Safety at the Ministry of Labor, including all discussions held during the meeting.

Additionally, after registering the CMSST, the company must hire an external advisor to design the Occupational Health and Safety Program according to the company’s specific activities. This program must be submitted to the Ministry of Labor for approval, and the CMSST is responsible for monitoring its implementation and compliance.

Compliance with Occupational Health and Safety regulations, as well as the formation and registration of the Joint Committee on Occupational Health and Safety (CMSST), is not optional but a legal obligation for all companies across all industries. Failure to comply with the provisions set out in Regulation No. 522-06 can lead to serious legal consequences, including the filing of justified resignations by employees.

This means that, in the event an employee decides to terminate their employment due to the company’s failure to implement mandatory occupational safety and health measures, the company could be ordered to pay severance benefits, acquired rights, compensation for damages, and up to six months of back pay. Additionally, the company may also face labor-related criminal penalties. Therefore, we strongly urge all companies to strictly comply with these obligations to avoid legal sanctions and to ensure a safe and healthy work environment for all.

If you would like more information or need legal advice on this matter, don’t hesitate to connect with a member of our Labor Law Department to address your concerns. We are here to help you navigate these changes and protect your labor rights. Thank you for reading, and until next time!

Pyramid schemes are a very common type of fraudulent arrangement today, disguised as highly profitable businesses. The mechanics are simple: investors are promised large returns in exchange for a minimal contribution of money or assets. In practice, however, the funds from new participants are used to pay the initial investors, without any real economic activity generating sustainable profits.

Unlike multilevel marketing systems, where there is at least a real product or service (even if profitability relies more on recruitment than on sales), pyramid schemes have no production or genuine economic value, which inevitably leads to the collapse of the scheme and the loss of money for most participants.

A Historical Gap in Dominican Legislation

For decades, the Dominican Penal Code—over 100 years in force—did not expressly include the figure of the pyramid scheme. These practices were prosecuted under the criminal offenses of fraud or breach of trust, which carried limited penalties, usually not exceeding two years in prison. This created a framework of impunity in which the legal consequences were minimal compared to the economic and social harm caused.

The New Legal Framework: Law 74-25

With the enactment of the new Penal Code (Law 74-25), specific provisions addressing pyramid schemes were introduced in Articles 240 through 242. The law defines them as a form of fraud disguised as a business scheme, whose real purpose is the recruitment of people to collect money or digital assets (cryptocurrencies, tokens, NFTs, or other digital documents with financial value), under the deceptive promise of future returns.

In this sense, the legislator clarifies that all systems in which there is no real business involving goods, services, or legitimate investments—properly authorized and verifiable according to current economic standards—will be considered pyramid schemes.

Penalties

The new Penal Code establishes harsher penalties proportional to the seriousness of the offense:

  • Basic penalty: Major imprisonment from 5 to 10 years and a fine of 1 to 20 times the amount involved in the offense.

  • Aggravated penalty: Major imprisonment from 10 to 20 years and a fine of 1 to 20 times the amount involved in the offense, in the following cases:

    • When the perpetrator is a public official or falsely claims to have authority.

    • If traditional or digital media (press, television, social networks, etc.) are used to promote or disseminate the scheme.

    • When the victims are people in vulnerable situations due to age, sex, pregnancy, or other special conditions.

Recommendations to Avoid Falling Victim to These Schemes

At Alburquerque Abogados, we recommend that citizens and our clients take preventive precautions to identify and avoid potential fraud:

  • Be skeptical of promises of quick and disproportionate profits. Legitimate businesses involve risks and reasonable returns.

  • Verify the existence of a real product or service. If income depends almost exclusively on recruiting new members, that’s a red flag.

  • Confirm the company’s legality. Check if it is registered with the competent authorities and holds the necessary authorizations.

  • Investigate backgrounds. Look up information on the promoters and check for official complaints or warnings.

  • Avoid investing in schemes based exclusively on digital assets whose profitability is not backed by legitimate operations.

  • Seek advice from legal and financial professionals before committing your money to projects without clear support.

Pyramid schemes pose a persistent threat to investors and the broader economy. The tightening of penalties in the new Dominican Penal Code is an important step toward protecting citizens. However, the first line of defense will always be the prevention and due diligence of those who choose to invest.

At Alburquerque Abogados, we leverage our legal expertise to guide and support our clients in evaluating safe investments and defending their rights against potential fraud.

The digital transformation has also reached the notarial function in the Dominican Republic. With the approval of Resolution No. 50-2024, the Supreme Court of Justice has implemented the Regulation for the Use of Digital Documents and Signatures in the Exercise of Notarial Functions, which will come into effect within a maximum of twelve months from its publication. This regulatory framework represents a landmark change in the preparation, preservation, and validation of notarial acts, ensuring legal certainty in a digital environment.

Legal Framework and Objectives

The regulation is based on Law 126-02 on Electronic Commerce and Law 140-15 on the Notarial Profession, which recognize the legal validity of digital documents and signatures. Its primary purpose is to regulate the use of secure digital signatures in notarial documents, equating their evidentiary value to that of paper instruments.

Thus, notaries will be able to prepare deeds, contracts, powers of attorney, and other instruments in digital format, while safeguarding the guarantees of authenticity, integrity, and confidentiality.

Guiding Principles

The regulation rests on fundamental principles aimed at balancing innovation with legal certainty:

  • Optionality: the notary may choose between digital or physical documents.

  • Integrity and authenticity: secure and certified digital signatures are required.

  • Protection of personal data: obligation to safeguard the privacy of the parties.

  • Traceability and transparency: each notarial act must be subject to tracking.

  • Standardization: unified criteria for digital notarial practice.

Digital Notarial Documents

Digital notarial documents enjoy full legal validity, provided they are signed with a secure digital signature recognized by Indotel.

The regulation allows parties to appear either in person or remotely, with identity verification through electronic evidence. In addition, notaries may issue authentic digital copies with the same legal value as those issued on paper.

The Electronic Notarial Protocol

One of the most significant innovations is the creation of the electronic notarial protocol. This replaces the traditional physical protocol and will be kept by the notary but deposited in a national electronic repository administered by the Dominican Notaries Association.

In this way, the preservation, confidentiality, and immutability of the documents are ensured, with the possibility of recovery in the event of loss or damage.

Management and Oversight

The administration of the digital system will be entrusted to a Notarial Management Council, composed of:

  • The President of the Supreme Court of Justice (who presides over it).

  • The Attorney General of the Republic.

  • The President of the Dominican Notaries Association (serving as secretary).

This body will regulate the use of the digital platform and oversee the proper implementation of technological tools.

Furthermore, the Supreme Court of Justice, the Public Prosecutor’s Office, and the General Directorate of Internal Revenue will retain authority to inspect digital notarial documents.

Benefits of the Digital Signature in Notarial Practice

The regulation not only modernizes notarial practice but also offers significant advantages:

  • Streamlined procedures and reduced processing times.

  • Enhanced security and transparency in the execution of acts.

  • Remote accessibility, fostering digital inclusion.

  • Reduced paper use, with a positive environmental impact.

  • Strengthening of e-commerce and legal certainty in business transactions.

Conclusion

The incorporation of secure digital signatures in notarial practice marks a turning point in the Dominican legal system. This regulation not only addresses the need for modernization but also positions the country in line with international trends in the digitalization of legal services.

For citizens and businesses, this means greater efficiency and confidence in the formalization of legal acts. For notaries, it represents both a challenge and an opportunity to update their practice, thereby reinforcing their role as guarantors of public faith in the digital era.

Introduction

In recent years, the rental of residential and commercial properties has become a key element in the urban development of the Dominican Republic. However, this widespread practice continues to be governed by regulations that date back more than five (5) decades, creating a growing disconnect between the law and the realities of today’s real estate market. In response to this situation, on August 19, 2024, a bill was submitted to the National Congress that promises to significantly transform the rental landscape in the Dominican Republic. This initiative aims to update and modernize a legal framework that has long been outdated, affecting both landlords and tenants.

At Alburquerque Abogados, we understand the importance of this bill and aim to explain it clearly and accessibly, highlighting its key points, the potential impact on the real estate market, and how it promotes a balance between the rights of the parties and the broader social interest.

Purpose and Justification of the Bill

The main objective of the law is to establish a modern regulatory framework governing the relationships between landlords and tenants, ensuring greater legal certainty, contractual clarity, and effective conflict resolution mechanisms. The bill seeks to:

  • Establish clear rules regarding the rights and obligations of both parties.

  • Encourage investment in residential and commercial rentals.

  • Streamline legal processes related to rentals through specialized courts.

  • Promote transparency and reduce unnecessary conflicts.

The proposal responds to the current context of urbanization, housing shortages, and the growing demand for residential and commercial spaces—all within a fragmented and outdated legal system that hinders trust and investment.

Scope and Exclusions

This law will apply to all rental contracts for real estate intended for residential, commercial, or other lawful purposes. However, it explicitly excludes certain cases regulated by specific or distinct regulations, such as:

  • Rural farms and land

  • Officially registered lodging establishments

  • Free zones and temporary commercial spaces (fairs, markets)

  • Rentals for periods shorter than thirty (30) days

  • State-owned properties and parking spaces

These exclusions ensure that the law focuses on traditional leasing without interfering with other special regimes.

Formalization of Rental Agreements

Rental contracts must be in writing and include basic information such as the identity of the parties, a description of the property, rental price, payment terms, duration, and the purpose of the lease. It also allows the inclusion of compliance insurance or special agreements, such as real estate leasing. This formalization reduces ambiguity, protects both parties, and facilitates dispute resolution.

Rent, Guarantees, and Deposits

The parties may freely agree on the rental price, provided that the amount, payment location, and method are clearly stated. Tenants have the right to receive a payment receipt unless otherwise agreed. The rent may be adjusted annually, with a maximum increase of ten (10%) percent of the previous amount, based on inflation data from the Central Bank. Landlords may require up to three (3) months’ rent as a deposit, either in cash (to be deposited in the Agricultural Bank) or in the form of a surety. The contract and deposit must be registered to ensure traceability and legal certainty. In case of disputes, the specialized Justice of the Peace Court will resolve the matter.

Grounds for Termination and Subrogation

A lease may be terminated upon expiration, improper use of the property, destruction of the property, or serious breach of contract. If neither party expresses the intent to end the lease at its expiration, the agreement is automatically extended under the same conditions. In the event of the tenant’s death, the contract may continue with direct relatives or cohabitants, provided they demonstrate the ability to pay, thereby ensuring family stability and legal continuity without requiring a new agreement.

Obligations of the Parties

Landlord’s Obligations:

Landlords must deliver the property in proper and habitable condition, carry out necessary structural repairs, and ensure access to basic services. Discriminatory conditions based on ethnicity, religion, sexual orientation, nationality, or other human rights-protected categories are strictly prohibited.

Tenant’s Obligations:

Tenants are required to maintain the property, make minor repairs, respect the agreed-upon use of the property, refrain from making modifications without permission, and return the property in good condition at the end of the contract. Subleasing is prohibited without the landlord’s written consent.

Eviction Procedures and Special Jurisdiction

Eviction procedures will include a mandatory preliminary conciliation stage before a judicial officer. If no agreement is reached, the case may proceed before a specialized Justice of the Peace Court for rental and eviction matters.

This court will handle disputes related to non-payment, contract termination, contractual violations, and deposit-related issues. A maximum term of thirty (30) business days is established for issuing a ruling, and the use of public force is permitted to enforce judicial decisions.

Rulings, Appeals, and Role of Judicial Police

Eviction rulings will be immediately enforceable. In the event of an appeal, execution will only be suspended if a financial guarantee equivalent to the claimed amount is deposited.

Additionally, the Central Directorate of Judicial Protection Police is established to protect judges, parties, and property during the enforcement of eviction rulings, seizures, or other measures. This reinforces the enforcement of the law within a framework of legality, safety, and order.

Conclusion

The proposed Rental Law represents a major step forward in modernizing the legal framework governing real estate in the Dominican Republic. This legislative initiative not only aims to put an end to outdated and fragmented regulations that have long generated insecurity and informality in landlord-tenant relations, but also seeks to establish a coherent, functional legal structure aligned with the constitutional principles of fairness, legality, and decent access to housing.

Passing this law would substantially strengthen legal certainty in leasing operations, by promoting clear rules, efficient procedures, and accessible, rights-based dispute resolution mechanisms. By introducing new obligations for both parties, limiting arbitrary increases, formalizing written contracts, and guaranteeing more orderly and specialized judicial processes, it creates a more favorable environment for both property owners looking to invest and individuals seeking a place to live or start a business.

At Alburquerque Abogados, we welcome this legislative proposal with optimism and reaffirm our commitment to guide our clients—landlords and tenants alike—through a clear understanding and proper implementation of its provisions. We will closely follow its progress in the National Congress and stand ready to provide expert legal assistance throughout any contractual, judicial, or administrative process this new law may involve.