Legal Framework

The legal framework which supports the Dominican Republic’s Payments System is the Monetary and Financial Law, No.183-02 approved on November 21, 2002.  Article 27 of this Law establishes the following:

"Payments and Clearing System. The system for payments and clearance of checks and other means of payment is an exclusive public service provided by Central Bank. The regulatory framework established by the Monetary Board for the organization and operation of the payments and clearing system will have as basic objectives assuring the immediacy and receipt of the payment in good funds, being able to establish different subsystems, using international standards as a reference on the subject. All financial intermediation organizations will be required to participate in this system, and no multilateral netting and settlement systems shall be organized other than the system established in this Article.  The Central Bank shall act as supervisor and final settler for the payments and clearing system. The material provision of service could be granted to private organizations, in a manner to be determined via regulation adopted by the Monetary Board. Under no circumstances will the Central Bank cover a negative position of a financial intermediation organization, regardless of how transitory it may be. The Monetary Board may establish a collective bond regime or adequate guarantees for the participants. The reserve accounts and other funds deposited by the financial intermediation organizations in the Central bank, will serve as current accounts for the clearing and payments system, as established by the Monetary Board".

Laws and Resolutions

Check Law No. 2859 of April 30, 1951

Law 62-00 of August 3, 2000 that amends Articles 66 and 68 of the Check Law No. 2859

Securities Market Law No. 19 of May 8, 2000.

Monetary and Financial Law No. 183-02 of  November 21, 2002

Law of Electronic Commerce, Digital Documents and Signatures No. 126-02 of September 4 ,2002

Systemic Risk Law No. 92-04 of January 27, 2004

Central America and Dominican Republic Model Law for Securities Payments and Settlement of November 12,  2004.

Second Resolution of the Monetary Board of December 6, 2001 (On standards and operation of the Clearinghouse of the Central Bank).

Fifth Resolution of the Monetary Board of December 23, 2004 (On the safekeeping of and accounting for certificates issued by the Central Bank).

Second Resolution of the Monetary Board of February 10, 2005 (On the clearance and settlement of payment operations conducted through electronic payment methods)

Fifth Resolution of the Monetary Board of August 11, 2005 (On the participation of all financial intermediation organizations in the clearing of commercial instruments).

Other regulations

International Standards

Core Principles for Systemically Important Payment Systems

Basel Committee II        

Glossary

Glossary in English prepared by the Committee on Payment and Settlement Systems (CPSS).