New Penal Code: Key points on penalties and corporate liability The new Penal Code arrives with profound transformations in the judicial system, raising prison sentences to up to 40 years and establishing a cumulative penalty structure that can reach 60 years. This regulation modernizes the Dominican justice system by criminalizing more than 70 new offenses, including femicide, contract killing, cyberbullying, and various computer and pyramid fraud schemes. One of the pillars of this reform is the criminal liability of legal entities. Companies are now held accountable for the acts of their representatives and subordinates, facing severe fines, closures, or even legal dissolution. To mitigate risks, regulatory compliance becomes mandatory: organizations must implement effective prevention programs, with internal controls, reporting channels, and compliance officers, under penalty of facing economic sanctions that can reach 1,500 minimum wages. The text also toughens the fight against administrative corruption and influence peddling, disqualifying those convicted from holding public office. Likewise, clear rules are established regarding bankruptcy, unauthorized financial intermediation, and conflicts of interest for former regulators. In short, this new legal instrument redefines the standard of corporate governance, demanding rigorous oversight where diligence and transparency are the only way to avoid criminal liability.

The new Penal Code: Profound transformation in justice and the business environment

The Dominican judicial system is preparing for a significant transformation with the implementation of the new Penal Code. This regulation not only modernizes the catalog of crimes but also drastically increases penalties, establishing a more severe framework of consequences to ensure legal certainty and social order. Among the most notable innovations, prison sentences increase from 30 to 40 years, while the accumulation of sentences may reach up to 60 years, a measure that, in practice, resembles life imprisonment.

New crimes and toughening of penalties

The code introduces more than 70 new criminal offenses, adapting to contemporary realities. Among them, the following stand out:

• Digital crimes and cyberbullying: Protection against identity theft and new forms of harassment.
• Gender and domestic violence: Specific classification of psychological, economic, and physical violence, with penalties ranging from 2 to 10 years.
• Administrative corruption: Stricter sanctions, disqualification from public office, and fines proportional to the amount involved.
• Influence peddling: Now established as an autonomous figure within the law.
• Crimes against property: Detailed classification of fraud, including real estate, pyramid, and computer-based schemes.

Criminal liability of legal entities

One of the most radical changes is the criminal liability of companies. Now, organizations are held accountable for the acts or omissions of their representatives or subordinates if these result from a lack of direction, control, or supervision. The entity can be convicted even if the specific employee who committed the offense is not identified, as it is sufficient to demonstrate that the act was carried out by someone with management or representative functions.

“The company is no longer a shield; it is now a legal entity that can be prosecuted, fined, shut down, and even legally dissolved if it facilitates the commission of crimes.”

Compliance: The new management standard

To mitigate risks, the new Penal Code requires an effective compliance program. Companies must have clear policies, autonomous supervisory bodies, and protected reporting channels. Organizations that demonstrate due diligence and have updated preventive programs will be able to mitigate their liability, while the lack of these protocols can lead to fines of up to 1,500 public sector minimum wages.

Economic crimes and financial control

The legal text places special emphasis on the corporate and financial sector. Unauthorized financial intermediation, including Fintech operations or cooperatives acting outside of regulation, will face penalties of up to 10 years. Likewise, pyramid schemes and fraudulent bankruptcy are rigorously prosecuted, seeking to protect both public savings and the integrity of the national market.

This new legal instrument, inspired by legislation in countries such as France, Spain, Colombia, Chile, and Costa Rica, sets a precedent in corporate governance. Business leadership must be redefined under this new reality, where prevention and documentary traceability become fundamental pillars to avoid permanent legal consequences.