Haiti’s Financial Institutions Get Compliance Boost with World Bank Support

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Improving Investment Climate and Private Sector Development

The Haitian government has taken a significant step to improve the country’s investment climate and boost private sector development by strengthening its compliance procedures for financial institutions, with the support of the World Bank.

Challenges in Accounting and Auditing Practices

Haiti faced challenges in accounting and auditing practices, including an outdated National Accounting System, incomplete statutory framework governing corporate accounting and auditing, and a severe lack of trained local accountants. The Institute of Licensed Professional Accountants in Haiti (OCPAH) also failed to comply with several International Federation of Accountants (IFAC) Statements of Membership Obligations.

World Bank Support

The World Bank provided US$245,000 for advisory and design services from 2010 to 2012 to address these challenges. The project aimed at improving internal controls, identifying and mitigating risks, establishing a Risk Management Committee, designing new policies and guidelines, and developing a business contingency plan.

Project Outcomes

The project resulted in the development of a clear roadmap to strengthen Haiti’s accounting and auditing practices, endorsed by OCPAH, the Ministry of Finance, and the Prime Minister’s Office. A modern statutory and regulatory framework was also drafted, including amendments to the Tax Decree of 2005 and the Companies Law.

Benefits

The new legal framework enables OCPAH to associate with IFAC, the International Accounting Education Standards Board, and the Caribbean Community, reducing barriers to entry for foreign accounting firms. This is expected to foster higher accounting standards, a stronger accounting profession, and greater investor confidence in financial reporting.

The project also included a training program to acquaint private- and public-sector accountants with International Financial Reporting Standards (IFRS). The Haitian Central Bank has agreed to partially fund the training initiative and make available its training facilities at no charge.

Primary Beneficiaries

The primary beneficiaries of the project are the financial accounting and auditing institutions and their members, who will improve their performance and reputations. Improved accounting standards and performance will also strengthen investor confidence, leading to greater growth in Haiti’s private sector.

A Bright Future for Haitian Professional Accountants

According to Joseph Paillant, former OCPAH president, Haitian professional accountants could be in great demand in the Caribbean if they make the right choice today of reforming the organization of the profession and converging toward international accounting standards.