New Penal Code in Dominican Republic to heavily impact prison system, corporate liability

The upcoming implementation of the Dominican Republic's new Penal Code is poised to create significant pressure on the nation's prison system, with legal expert Víctor Mateo Vásquez warning that the government may need to construct new prisons to accommodate an expected increase in the incarcerated population.

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the entry into force of the new Penal Code will have a strong impact on the Dominican penitentiary system, for which the Government will have to build new prisons to respond to the increase in the prison population that the new legal framework foresees.

Vásquez, a lawyer and sociologist, expressed disappointment that the legislative grace period, known as 'vacatio legis,' was used for modifications rather than for a public awareness campaign. He noted that while parts of the Public Ministry and Judiciary received training, the general public remains largely uninformed about the new legislation. He did, however, voice confidence in the commission tasked with reviewing the code, which is headed by Milton Ray Guevara.

Furthermore, Vásquez highlighted a critical new aspect of the code: the criminal liability of legal entities. This provision will compel businesses to adopt robust compliance programs, establish ethical codes, and implement internal controls. Failure to do so could result in severe economic sanctions and disqualifications, as the code now allows for the prosecution of companies themselves, not just individuals within them.

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the period of vacatio legis was used to introduce modifications to the Code instead of developing an orientation campaign aimed at the citizenry.

The new legal framework aims to modernize the justice system, but its practical implications, particularly for the penal system and corporate governance, are substantial. The government faces the challenge of not only adapting its infrastructure but also ensuring public understanding and corporate compliance to navigate the transition effectively.

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the new criminal responsibility of legal persons will oblige companies to implement compliance programs (compliance), codes of ethics and internal controls to prevent economic sanctions and disqualifications, since the Code will allow companies to be prosecuted, and not only natural persons.