Haiti’s Financial Institutions Under Scrutiny: Compliance Procedures Crucial in Fight Against Money Laundering and Terrorist Financing

Strengthening Efforts Against Money Laundering and Terrorist Financing

International organizations are urging financial institutions in Haiti to implement robust compliance procedures to prevent the misuse of financial systems for illicit activities. Recent guidelines require financial groups operating in Haiti to develop group-wide programs aimed at preventing money laundering and terrorist financing.

Key Requirements

• Financial institutions must establish internal policies, procedures, and controls that ensure high standards when hiring employees.
• Adequate screening procedures and ongoing employee training programs are necessary.
• An independent audit function is required to test the effectiveness of these measures.
• The type and extent of measures taken should be proportionate to the risk of money laundering and terrorist financing, as well as the size of the business.

Compliance Management Arrangements

• Financial institutions must appoint a compliance officer at the management level.
• Compliance management arrangements must include measures such as:
  • Customer due diligence
  • Account monitoring
  • Transaction reporting
  • Policies for sharing information between entities

Extending Programs to All Branches and Subsidiaries

Financial groups operating in Haiti are required to extend their programs to all branches and majority-owned subsidiaries, including those located abroad.

Managing Risks

• In cases where host country regulations do not permit the implementation of minimum AML/CFT requirements, financial institutions must apply additional measures to manage risks.
• If these measures are deemed insufficient, competent authorities in the home country may consider additional supervisory actions, including requesting the closure of operations in the host country.

The Role of the Haitian Government

The Haitian government has been urged to establish a robust regulatory framework that ensures compliance with international standards and best practices. The implementation of effective AML/CFT measures is crucial in preventing the misuse of financial systems and protecting the integrity of the global economy.

Prioritizing Compliance

With the recent surge in money laundering and terrorist financing activities, it is essential for financial institutions in Haiti to prioritize compliance and implement robust procedures to prevent these illicit activities. By doing so, they can help safeguard the stability and security of the financial system, as well as protect the interests of their customers and investors.