Haiti Ranked as Worst in Cryptocurrency Money Laundering Efforts in Americas, Report Says
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A recent report by the Basel Institute has ranked Haiti as the worst in cryptocurrency money laundering efforts in the Americas, citing the country’s poor anti-money laundering (AML) measures and widespread corruption.
Poor AML Measures and Corruption
The report found that Haiti had the second-worst score globally, behind only the Democratic Republic of Congo. The country’s constitutional immunity granted to members of parliament is a major obstacle to prosecuting corrupt officials. As Global Financial Integrity (GFI) notes, “The constitution grants members of parliament immunity while they are in office, and it cannot be waived by the state in order to prosecute them.”
Allegations of Money Laundering Surrounding Haitian Political Elites
The report highlights allegations of money laundering surrounding Haiti’s political elites, including former President Jovenel Moïse, who was assassinated in 2021 while facing investigations for money laundering. The country has also been sanctioned by the United States and Canada over links to drug trafficking and financing gangs.
Pervasive Corruption Enabling Money Laundering
Haiti’s corruption problem is so pervasive that it has become a major enabler of money laundering, with GFI reporting that corruption is the only issue more widespread than money laundering in the country. The report notes that the lack of transparency and accountability in Haiti’s financial system makes it an attractive haven for criminals seeking to launder their illicit proceeds.
Regional Comparison
In contrast, other countries in the region have made significant strides in combating money laundering. Dominica, a small Caribbean island, has been ranked as the best in cryptocurrency money laundering efforts in the Americas, thanks to its strong AML measures and low risk of corruption and bribery.
Mexico, on the other hand, has struggled with money laundering, despite having some of the strongest laws for personal asset declarations and election financing transparency. The country’s perceived slowness in investigating the Odebrecht scandal and lack of big-name convictions have hindered progress.
Recommendations
The report highlights the need for countries to prioritize AML measures and increase transparency and accountability in their financial systems to combat money laundering and other financial crimes.
Key Takeaways
- Haiti has been ranked as the worst in cryptocurrency money laundering efforts in the Americas.
- The country’s poor AML measures and widespread corruption are major contributing factors.
- Other countries, such as Dominica, have made significant strides in combating money laundering.
- Prioritizing AML measures and increasing transparency and accountability are crucial to combatting money laundering and other financial crimes.