Financial Crime World

Haiti to See Banking Regulation Changes in 2023

Port-au-Prince, Haiti - The Haitian government has announced a series of changes to its banking regulations that are set to take effect in 2023. The updates aim to improve financial stability and prevent money laundering.

Notable Changes

  • New Capital Requirements: Large banks will be subject to new capital requirements.
  • Stricter AML/CFT Programs: Anti-money laundering (AML) and countering the financing of terrorism (CFT) programs will become more stringent.
  • Improved Risk Management Practices: Regulations aimed at improving risk management practices among financial institutions.

Haitian Central Bank’s New Rules

  • Higher Liquidity Requirements: Banks must maintain higher levels of liquidity to withstand economic shocks.
  • Enhanced Ability to Withstand Economic Shocks: Banks will be required to improve their ability to withstand economic shocks.

Broader Effort to Strengthen the Banking Sector

The changes are part of a broader effort by the government to strengthen the country’s banking sector and improve its overall financial stability. The updates are expected to take effect in June 2023, with some regulations coming into force later in the year.

Spring 2023 Semiannual Risk Perspectives Report

The Haitian Central Bank has released its Spring 2023 Semiannual Risk Perspectives Report, highlighting key risks and issues facing the country’s banking system. The report identified:

  • Liquidity: A major concern for the banking sector.
  • Credit Risk: A significant risk facing banks.
  • Operational Risk: A major risk that banks must manage effectively.
  • Compliance Risk: A critical area of focus for banks.

The bank emphasized the importance of effective risk management practices among financial institutions, stating that it expects banks to “be on the balls of their feet” with regards to risk management.

Impact on Haiti’s Banking Sector

The changes are expected to have a significant impact on Haiti’s banking sector, with many experts predicting an increase in capital requirements for large banks and stricter regulations around AML/CFT programs.