In Santo Domingo, the Dominican Republic’s top financial oversight body has rolled out a updated regulatory framework aimed at tightening transparency, accountability, and transaction tracking for public institution payments tied to credit assignments and factoring operations.
The new policy, officially signed off by Comptroller General Geraldo Espinosa, was crafted to address gaps in current financial oversight by requiring clear, verifiable identification of every stakeholder involved in these transactions, while strengthening monitoring of all government-connected financial flows. Unlike previous loose guidelines, the new circular sets non-negotiable strict eligibility requirements for any payment request that involves transferred collection rights — any submission that fails to meet these standards will be automatically rejected.
A core mandate of the new directive requires the assignee (the party receiving the assigned credit rights) to complete registration as an official beneficiary both with the Dominican National Treasury and the country’s central Financial Management Information System, known locally as Sigef, before any payment can receive final approval. For assignees that have not yet completed this registration process, the relevant public institutions are required to guide them through the mandatory registration procedure aligned with existing national financial regulations.
The circular also clarifies procedural standards for processing payments and applying required tax withholdings. Under the new rules, financial records will first attribute the transaction to the original supplier before the final funds are transferred to the assignee, creating a clear paper trail for auditors. Municipal governments and public entities that currently operate outside the Sigef system have been formally instructed to adjust their internal financial protocols to align with these new oversight guidelines.
Officials note that this new circular is not an isolated rule change, but a key component of a government-wide broader strategy to upgrade internal financial controls across all public sector institutions, reduce opportunities for financial mismanagement and corruption, and improve the overall quality of public financial governance in the country.