Haiti: Compliance in the Financial Sector Under Scrutiny
Introduction
The Haitian economy is evolving rapidly, and attention is being focused on compliance in the financial sector. The government has taken steps to strengthen regulations and improve transparency, but challenges remain.
Payment Methods in Haiti
Cash remains the most widely used form of payment in Haiti, with debit cards and credit cards accepted by established businesses. However, a range of other payment methods are also available, including:
- Checks
- Haitian Interbank Payment System (SPIH)
- Bank cards
- Mobile phone payments
SPIH: A Secure and Convenient Payment Method
The SPIH, operated by the Haitian Central Bank (BRH), allows for real-time transactions between commercial bank accounts. It is widely used by businesses and individuals due to its security features and low transaction fees.
Improving Access to Financial Services
To improve access to financial services, the BRH has announced plans to interconnect the ATM systems of major banking institutions. This will allow debit card holders to withdraw cash from any ATM bearing the “PRONAP” logo, increasing financial inclusion and convenience for consumers.
Opening Bank Accounts in Haiti
Resident individuals and foreigners can open bank accounts in Haiti, but certain requirements must be met:
- Minimum deposit requirement
- Valid identification documents needed
- Companies must provide proof of registration and address, as well as an initial deposit of at least 25,000 gourdes (approximately $185)
Foreign Exchange Controls
The government has taken steps to improve foreign exchange controls, with no restrictions on the inflow or outflow of capital. Remittances are a significant source of foreign currency for Haiti, but there may be limits on the amount that can be withdrawn per transaction.
Convertibility of the Haitian Gourde
The Haitian gourde is convertible for commercial and capital transactions, with banks and currency exchange companies setting their rates at market-clearing levels. The BRH publishes a daily reference rate, which reflects the weighted average of exchange rates offered in both formal and informal markets.
Challenges and Concerns
Despite efforts to improve financial stability, concerns remain about the predictability and stability of the Haitian financial sector. The gourde has experienced significant fluctuations in value, shaking confidence among investors. The government has promised to implement stricter measures to monitor money transfers and combat illicit cash flows, as mandated by anti-money laundering regulations and the US Foreign Account Tax Compliance Act (FATCA).
Financial Transparency
Citibank is the only US bank operating in Haiti, primarily serving corporate accounts. There are no local correspondent banks, but further details on financing options can be found in the 2023 Investment Climate Statement.
Prioritizing Compliance
As Haiti continues to develop its financial sector, it remains important for businesses and individuals to prioritize compliance with regulations and reporting requirements. Failure to do so could result in penalties and reputational damage.