Haiti Boosts Bank Security Measures, Enhances Payment System
In a bid to strengthen its financial sector, Haiti has taken significant steps to improve bank security measures and enhance its payment system. The country’s banking institutions have introduced advanced technologies to ensure safe and efficient transactions.
Secure Transactions through Advanced Technologies
The most widely used form of payment in Haiti is cash, with debit cards and credit cards also accepted by established businesses. Besides cash, the national payment system includes four other methods:
- Checks
- Haitian Interbank Payment System (SPIH)
- Bank cards
- Mobile phone payments
Real-Time Payment System: SPIH
The SPIH, operated by the Haitian Central Bank (BRH), is a real-time payment system that enables secure transactions between commercial bank accounts. The system has gained popularity among businesses due to its traceability and safety features.
Interconnected ATMs for Seamless Transactions
In a recent development, the BRH announced that major banking institutions such as Unibank, SOGEBANK, Capital Bank, and cooperatives Kotelam and Koples have interconnected their ATM systems. This move allows debit card holders to withdraw cash from any ATM bearing the “PRONAP” logo, ensuring seamless transactions.
Foreigners Can Hold Bank Accounts in Haiti
Foreigners can also hold bank accounts in Haiti, with local currency (Haitian Gourde) and USD options available. Residents and non-residents can open individual or corporate bank accounts, subject to certain requirements.
Liberalized Foreign Exchange Controls
The government has taken steps to liberalize foreign exchange controls, allowing for unrestricted inflows and outflows of capital. The Law of 1989 governs international transfer operations and remittances, which contribute significantly to Haiti’s GDP.
Banks Set Their Own Exchange Rates
Banks in Haiti set their own exchange rates, with the BRH publishing a daily reference rate based on market conditions. While the Haitian Gourde (HTG) is convertible for commercial and capital transactions, its fluctuating value has raised concerns among investors.
Stricter Measures to Monitor Money Transfers
To address these concerns, the government plans to implement stricter measures to monitor money transfers, in line with its efforts to combat illicit cash flows. The country is also expected to implement an agreement on the US Foreign Account Tax Compliance Act (FATCA).
Citibank: The Only US Bank Operating in Haiti
Citibank is the only US bank operating in Haiti, primarily serving corporate accounts. There are no local correspondent banks in the country.
Enhancing Banking Transactions in Haiti
Overall, these developments aim to enhance the safety and efficiency of banking transactions in Haiti, positioning the country as a more attractive destination for investors and businesses alike.