New Penal Code: key changes in penalties and corporate liability The new Penal Code arrives with profound transformations that impact both citizens and the corporate sector. This regulation modernizes the Dominican judicial system by raising maximum sentences to 40 years in prison and establishing the accumulation of sentences up to 60 years, which in practice represents a life sentence for the most serious crimes. Among the most notable novelties is the inclusion of more than 70 new criminal offenses, ranging from digital crimes, cyberbullying, and identity theft, to contract killing and pyramid schemes. The law significantly toughens sanctions against administrative corruption, autonomously classifying influence peddling and disqualifying those convicted from exercising public functions. A transcendental change is the criminal liability of companies. Organizations no longer function as a legal shield; they are now prosecutable subjects that can face millionaire fines, temporary closure, or even their definitive dissolution if a lack of control or supervision is proven. To mitigate these risks, the new legal framework imposes the mandatory implementation of regulatory compliance programs, requiring clear prevention policies, reporting channels, and rigorous corporate governance. Regarding social protection, the code reinforces the prosecution of gender-based, domestic, and sexual violence, extending statutes of limitations to protect victims. With this instrument, inspired by legislation from France, Spain, and Latin America, the country redefines the standards of justice and corporate ethics, forcing companies to adopt a culture of legality where ignorance of the acts of subordinate third parties will no longer be a valid excuse before the law.

The new Penal Code: Profound transformation in justice and corporate responsibility

The Dominican judicial system is preparing for a significant transformation with the implementation of the new Penal Code. This regulation not only toughens existing penalties, raising prison limits to 40 years—and reaching up to 60 years through the accumulation of sentences—but also introduces more than 70 new criminal offenses adapted to contemporary realities.

Among the most notable innovations, the code classifies crimes such as femicide, contract killing, cyberbullying, identity theft, pyramid schemes, and various forms of fraud, including real estate and computer fraud. Likewise, the fight against administrative corruption is strengthened, establishing disqualification from public office and penalties calculated according to the economic volume of the crime.

Criminal liability of companies: A paradigm shift

One of the central pillars of this reform is the criminal liability of legal entities. Companies are now legally responsible for the acts or omissions of their representatives or subordinates if these derive from a lack of direction, supervision, or control. This legal framework implies that:

• Companies can be sanctioned even if the specific employee who committed the illicit act is not identified.
• Liability covers intentional conduct, as well as that derived from recklessness or negligence.
• Legal dissolution, fines of up to 1,500 minimum wages, and the closure of establishments are part of the possible sanctions.
• Mergers or the transfer of assets do not extinguish the criminal liability acquired.

The company is no longer a shield; it is now a legal entity that can be prosecuted, fined, shut down, and dissolved. The executive cannot claim ignorance, and liability for failure to supervise reaches them, even if they did not personally commit the illicit act.

Regulatory compliance as a management pillar

To mitigate risks, the new Penal Code requires the implementation of effective compliance programs. These models must not be merely decorative, but rather solid structures that include:

• Anonymous reporting channels with whistleblower protection.
• Continuous training protocols on human rights and crime prevention.
• Supervisory bodies with real autonomy.
• Documentary traceability and periodic audits.

The regulations establish that companies may reduce their liability if they demonstrate having had an effective compliance program in place before the event or if they actively cooperated with the authorities after detecting an irregularity. Conversely, the absence of these control mechanisms drastically increases legal exposure to crimes such as influence peddling, money laundering, and unauthorized financial intermediation.

Economic crimes and sanctions

The new legal instrument also puts the business sector under the microscope with figures such as fraudulent bankruptcy, conflicts of interest for former regulators, and illicit agreements between merchants to fix prices. The law is clear: corporate governance must be redefined under standards of professional diligence. Prevention, ethical leadership, and internal control have gone from being a recommendation to becoming mandatory pillars for the survival and legality of any entity in the current market.