DOMINICAN REPUBLIC Law and Practice Contributed by: Guillermo Estrella Ramia, Yamel Llenas Lajud, Mariela Santos Jiménez and Valentina Gallo Botero, Estrella & Tupete
In the environmental (E) component, the Environmental Law and the Solid Waste Management Law establish obligations for prevention, management and reporting of environmental impacts, including licensing, audits, monitoring and management plans overseen by the Ministry of Environment and Natural Resources. In the social (S) dimension, companies must comply with occupational health and safety, labour rights and community participation standards, in accordance with the Labour Code and ILO conventions. Projects subject to environmental assessment must include social management plans and public consultation processes. Regarding governance (G), the Anti-Money Launder- ing Law, the Companies Law and the regulations of the Superintendency of the Securities Market impose transparency, compliance and corporate governance requirements, reinforced by the General Directorate of Ethics and Government Integrity. Since 2023, the Green and Social Taxonomy and the issuance of sovereign green bonds have incorporated ESG criteria into public and private investment, with reporting, verification and monitoring mechanisms aligned with international standards. 6.6 Environmental Audits The Ministry of Environment and Natural Resources (MIMARENA) may order mandatory environmental audits (scheduled or surprise) as part of the supervi- sion and monitoring process for environmental licenc- es, permits or certifications. Likewise, companies engaged in industrial, extractive, energy or tourism activities commonly conduct voluntary compliance audits to verify the implementation of their Environ- mental Management and Adaptation Plans (PMAA) and to update their records with MIMARENA. In both cases, audits must be conducted by environmental consultants duly accredited by the Ministry.
ble for environmental violations or damages commit- ted by a company if they participated in, authorised or tolerated the unlawful conduct, without prejudice to the entity’s own criminal liability. Applicable sanctions include: • personal fines; • prison sentences of up to ten years in cases of severe pollution or recidivism; • professional disqualification or suspension from office; and • joint liability for the repair or compensation of the damages caused. Although Dominican law does not prohibit insurance coverage, directors’ and officers’ (D&O) liability poli- cies only cover financial risks arising from negligent acts, generally excluding coverage for intentional acts or criminal offences. Some local and regional insur- ers offer limited extensions covering defence costs or administrative fines, but not personal criminal liability. In the Dominican Republic, environmental insurance is offered as a specialised coverage within civil liability policies, though its use remains limited. Some local and regional insurers market products covering: • accidental damages; • clean-up; • remediation; and • legal defence. There is no mandatory legal regime for environmental insurance, but the Ministry of Environment and Natu- ral Resources may require the contracting of an envi- ronmental liability policy as a condition for granting licences or permits for high-risk projects, particularly in the mining, energy, industrial and port sectors. Poli- cies typically exclude: • intentional or wilful acts; • gradual or pre-existing pollution; • criminal or administrative penalties; and 8. Insurance 8.1 Environmental Insurance
7. Personal Liability 7.1 Directors and Other Officers
In the Dominican Republic, directors, administrators and legal representatives may be held personally lia-
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