Dominican Senate extends deadline for corporate criminal liability

The Dominican Senate has approved an urgent legislative initiative to extend the implementation period for new articles in the Penal Code regarding corporate criminal liability. While the provisions originally had a deferred entry into force of three months starting August 5, the new project extends this deadline to 24 months to allow companies sufficient time to adapt.

Under the new regulations, corporations can be held criminally liable for crimes committed by executives or employees if there are failures in supervision, control, or prevention. To mitigate this risk, companies are required to implement mechanisms to identify operational risks, establish internal controls, and update these measures periodically. The law also specifies that corporate liability does not exclude the individual criminal responsibility of the physical persons involved, and that liability may persist even after a company's formal dissolution.

The National Council of Provision Commerce (CNCP) has noted that this extension provides a vital opportunity for businesses, particularly micro, small, and medium-sized enterprises (MSMEs), to prepare. The CNCP emphasized that the transition should include training, technical assistance, and orientation programs to help smaller businesses manage the administrative and financial requirements of regulatory compliance.