Haiti Adopts Risk-Based Approach to Anti-Money Laundering, Improving Compliance Ratings
The Haitian government has taken a significant step towards improving its anti-money laundering (AML) regime by adopting a risk-based approach to combating financial crimes.
Improvements in AML Regime
According to the latest report from the Financial Action Task Force (FATF), Haiti has made substantial progress in implementing the technical requirements of the FATF Recommendations. The country has been rated “largely compliant” in several areas, including:
- Assessing risk and applying a risk-based approach
- National cooperation and coordination
- Money laundering offence, confiscation, and provisional measures
- Terrorist financing offence
- Targeted financial sanctions related to terrorism and terrorist financing
- Correspondent banking
Haiti also received positive ratings for its customer due diligence, record keeping, politically exposed persons, wire transfers, and reliance on third parties.
Challenges Remain
However, the country still faces challenges in implementing some of the FATF Recommendations. Specifically, Haiti was rated “non-compliant” in regards to:
- Transparency and beneficial ownership of legal persons and arrangements
- Regulation and supervision of designated non-financial businesses and professions (DNFBPs)
Risk-Based Approach
The risk-based approach adopted by Haiti involves identifying high-risk sectors and individuals and applying more stringent measures to prevent money laundering and terrorist financing. This approach is expected to improve the effectiveness of AML/CFT efforts in Haiti and reduce the country’s vulnerability to financial crimes.
“We are committed to strengthening our anti-money laundering regime and improving our international cooperation with other countries,” said a senior government official. “The risk-based approach will enable us to target our resources more effectively and make it harder for criminals to launder money through our financial system.”
Recommendations
The FATF report noted that Haiti has made significant progress in implementing its AML/CFT framework, but still faces challenges in terms of resources and capacity. The organization recommended that the country continue to strengthen its AML/CFT regime and improve its international cooperation with other countries.
Impact on Financial Stability and Investor Confidence
The adoption of a risk-based approach by Haiti is seen as a major step towards improving the country’s financial stability and reducing its vulnerability to money laundering and terrorist financing. The move is also expected to boost investor confidence and attract more foreign investment to the country.
Overall, Haiti’s adoption of a risk-based approach to AML/CFT demonstrates its commitment to strengthening its financial system and combating financial crimes.