Here is the article rewritten in Markdown format with proper headings, subheadings, and bullet points:
Due Diligence in Finance: A Guide to Payment Methods and Banking Systems in Haiti
In a country where cash is king, financial transactions in Haiti often involve complex methods of payment and banking systems. As foreign investors consider doing business in this Caribbean nation, it’s essential to understand the various payment options and banking regulations to ensure smooth transactions.
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, the national payment system includes four other methods:
- Checks
- The Haitian Interbank Payment System (SPIH)
- Bank cards
- Mobile phone payments
The SPIH
The SPIH is a real-time transaction processing system used by businesses and individuals to transfer funds between commercial bank accounts through the Central Bank of Haiti (BRH). This secure system allows for gross real-time settlements with low transaction fees, making it a preferred choice among Haitian businesspersons due to its traceability and safety.
Interconnected ATMs
In a major development, the BRH announced that starting October 1, 2020, ATM systems from major banks such as Unibank, SOGEBANK, Capital Bank, cooperatives like Kotelam in the West Department and Koples in the Northwest Department are interconnected for debit card holders who bank with those institutions. Debit card holders can now make withdrawals from any ATM bearing the “PRONAP” logo.
Banking System
Haiti’s banking system allows residents and foreigners to hold bank accounts in local currency (HTG) or US dollars (USD). Accounts can be opened immediately without additional fees, provided a minimum required deposit is made. To open an individual account, one must provide:
- A valid identity card or passport
- Resident permit
- Proof of address
- Minimum deposit of 2,500 HTG
For legal entities or companies, the required documents include:
- Completed application form
- Company bylaws
- Copy of the national gazette’s edition announcing the company’s registration
- Proof of company address
- Minutes of the last General Assembly electing, amending, or renewing the Board of Directors
- Valid license to operate and Tax Identification number
Foreign Exchange Controls
The Haitian government does not impose restrictions on capital inflows or outflows. The Law of 1989 governs international transfer operations and remittances, with no restrictions or controls on foreign payments or other fund transfer transactions.
However, there are limits on the amount of money that may be withdrawn per transaction. The Haitian gourde (HTG) is convertible for commercial and capital transactions, with banks and currency exchange companies setting their rates at the market-clearing rate. The BRH publishes a daily reference rate, which is a weighted average of exchange rates offered in the formal and informal exchange markets.
Recent Developments
The gourde has experienced fluctuations in recent years, depreciating by 11.2 percent in calendar year 2021 but appreciating by 13 percent during FY 22-23. This lack of predictability has shaken confidence among export-oriented investors.
The Government of Haiti has expressed its intention to implement stricter measures to monitor money transfers in accordance with its efforts to deter illicit cash flows, as mandated by the 2013 Anti-Money Laundering Act and the expected implementation of an agreement on the United States Foreign Account Tax Compliance Act (FATCA).
Additional Resources
For further information on financing in Haiti, readers can refer to the Haiti Investment Climate Statement 2023.