Ultimate Beneficial Owners in Dominican Republic

Yes. The Dominican Republic enforces Ultimate Beneficial Ownership (UBO) identification and registration requirements through Law No. 155-17 on Money Laundering and Terrorist Financing, Decree No. 408-17 that regulates the enforcement of Law No. 155-17 and General Norm No. 02-2021 issued by the Dominican Tax Administration (DGII). These laws impose mandatory disclosure obligations on legal entities operating in the country.

Pursuant to articles 4 and 38 of Decree No. 408-17, a UBO is any natural person who directly or indirectly owns or controls 20% or more of the shares or voting rights of a legal entity or otherwise exercises effective control. In the case of trusts, NGOs or similar legal structures, this includes settlors, trustees, protectors, beneficiaries, and others with controlling influence. Where no individual meets these criteria, the entity must designate its senior managing official as the UBO.

Legal entities are required to disclose the UBO's full name, nationality, country of residence, date of birth, identity document or passport number, tax identification number from the country of fiscal residence, full fiscal residence address including city and country, telephone number. Additionally, they must indicate the percentage and nature of ownership or control and describe any indirect control mechanisms. This information must be reported to the Tax Administration upon incorporation, updated annually, and revised promptly upon any changes in ownership or control. Also, the data of the UBO must be reported to the Tax Administration annually in the Income Tax return of the reporting entity or other means published by the DGII for these purposes. However, if a change arises in the UBO of the reporting entity, the Tax Administration must be notified within a period of no more than six months from the change.

UBOs are subject to enhanced scrutiny under anti-money laundering and know-your-customer (KYC) regimes. They may face civil or criminal liability if the legal entity is used for illicit purposes. Politically Exposed Persons (PEPs) identified as UBOs are subject to enhanced due diligence by regulated institutions. UBO status may also entail compliance with sanctions regimes and international reporting obligations.

The definition of UBOs in the Dominican Republic's law were the result of recommendations made by major international organizations, such as the Financial Action Task Force (FATF) and the Global Forum on Transparency and Exchange of Information for Tax Purposes of the Organization for Economic Cooperation and Development (OECD), demonstrating the country's commitment to complying with globally accepted standards of transparency in the exchange of information. The definitions established by Law No. 155-17 meet the international standards of both organizations.

UBO information is not publicly accessible. It is maintained by the DGII and may only be accessed by authorized government bodies, including the Financial Intelligence Unit (UAF), the Prosecuting Office of the Attorney General's Office, regulatory superintendencies, and judicial authorities. Third parties such as banks may request this information directly from their clients under KYC obligations, but not from DGII. Foreign access is only permitted through formal international cooperation channels.

Failure to comply with UBO identification and registration requirements may result in administrative fines imposed by the DGII, suspension or cancellation of the entity's tax identification number (RNC), disqualification from participating in public tenders, and potential criminal liability under Law 155-17 if non-compliance facilitates money laundering or terrorism financing. Non-compliant entities also face reputational risks and may encounter obstacles in accessing banking and financial services. 

Although specific jurisprudence is still limited, the Administrative and Tax Courts have formally sanctioned entities that fail to submit information on the beneficial owner, as required by the amendment to Article 50 of the Tax Code (introduced through Law 155-17). These decisions reaffirm the validity of the formal obligation to keep beneficial ownership information (including the ownership chain) updated and available. In such cases, the failure to provide this information is considered to create adverse presumptions against the taxpayer.

UBO disclosure requirements are critical for compliance in the Dominican Republic and are integrated into tax and anti-money laundering frameworks. Although the registry is not public, entities must ensure that all information is accurate, complete, and regularly updated. Legal and financial advisors should closely monitor structural changes within entities and align internal controls with international AML/KYC standards to mitigate compliance risks.

If your company is establishing a presence in the Dominican Republic, conducting due diligence, or navigating cross-border compliance obligations, tailored legal support may be advisable.