Haiti Embarks on Risk-Based Approach to Anti-Money Laundering Efforts
Haiti is taking a significant step towards strengthening its anti-money laundering (AML) and combating the financing of terrorism (CFT) framework by adopting a risk-based approach to mitigate money laundering and terrorist financing risks. This shift in strategy comes as a response to the Financial Action Task Force’s (FATF) revised 2012 Recommendation, which emphasizes the importance of understanding and addressing ML/TF risks.
Understanding National Risk Assessment
Under this approach, countries like Haiti are required to develop a national ML/TF risk assessment to identify, assess, and understand the full scope of money laundering and terrorist financing risks within their jurisdiction. The findings from this assessment will be shared with state authorities and the private sector to ensure a coordinated effort in combating these threats.
Benefits of National Risk Assessment
- Enables countries like Haiti to develop targeted strategies and actions
- Allows for more efficient allocation of resources
- Increases the overall effectiveness of AML/CFT measures
Implementing the Risk-Based Approach
The risk-based approach also requires state authorities, particularly supervisory bodies, to consider the national risk assessment when developing their strategies and actions. This focus on key areas enables them to allocate resources more efficiently and increase the overall effectiveness of AML/CFT measures.
Private Sector Responsibilities
Meanwhile, the private sector is expected to be aware of the broader risks identified by state authorities but also develop an understanding of their specific business operations, clients, and products. This will enable them to apply AML/ CFT measures in a manner and extent commensurate with the level of risk they pose.
FATF Guidance Papers
To support countries in implementing this approach, the FATF has issued several guidance papers on risk-based implementation. These resources are designed to assist countries like Haiti in developing their own guidance for the private sector and ensuring effective compliance with AML/CFT requirements.
Enhancing Financial System Safety
As Haiti moves forward with its risk-based approach, it is expected to enhance the country’s ability to identify and mitigate ML/TF risks, ultimately contributing to a safer and more stable financial system.