Santo Domingo, DR: President Luis Abinader promulgated the law regulating the Dominican Republic’s public trust this afternoon. The expected legal norm is now Law 28-23. It controls for the first time the important figure of the public trust, establishing an innovative legal framework for its organization, structure, and operation.
The law stipulates that the constitution of public trusts will be subject to the approval of the Executive Branch by decree and must comply with article 128, numeral 2, of the Constitution of the Republic, in specific cases.
Likewise, it guarantees that public purchases and contracts within the public trust framework are governed by Law No. 340-06 on Public Purchases and Contracts, Works and Concessions, and its modifications, ensuring effective and responsible management of public funds.
Regarding access to information, the law establishes a precedent by requiring that all information contained in the Trust Agreement or other acts subject to public record be disclosed by the Settlor through its respective Department or Office of Access to Information. Public, following the Law of Free Access to Public Information.
The supervision and regulation of public trusts will fall on the government entity participating in the faith, the Chamber of Accounts, the Superintendency of Banks, and the Superintendency of the Stock Market, as appropriate, depending on the purpose of the faith. This supervision structure guarantees transparency and accountability in the use of public resources.
The regulation in question also deals with administrative sanctions, establishing a system for classifying offenses as serious, serious, and minor.
The Superintendency of Banks will have the power to impose sanctions on trust companies, following the criteria established in Law no. 107-13 on the Rights of People in their Relations with the Administration and Administrative Procedure.
The promulgation of this law marks a milestone in the history of the Dominican Republic and demonstrates the commitment to transparency, efficiency, and responsibility in the management of public resources.
