Haiti Adopts Risk-Based Approach to Anti-Money Laundering Efforts

In an effort to combat money laundering and terrorist financing, Haiti has adopted a risk-based approach (RBA) to its anti-money laundering (AML) efforts. This approach involves identifying, assessing, and understanding the risks associated with money laundering and terrorist financing in the country.

Risk-Based Approach

Under this RBA, Haiti’s financial institutions and designated non-financial businesses and professions (DNFBPs) will be required to:

• Identify their own money laundering and terrorist financing risks
• Assess those risks and take effective action to mitigate them
• Have policies, controls, and procedures in place to manage and mitigate those risks

Supervision and Monitoring

The country has also established a system of supervision and monitoring to ensure that financial institutions and DNFBPs are effectively implementing the obligations set out under the RBA. Supervisors will:

• Review the risk profiles and risk assessments prepared by financial institutions and DNFBPs
• Take into consideration the results of these reviews when carrying out their functions

International Standards

Haiti’s decision to adopt a risk-based approach is in line with international standards and best practices, which emphasize the importance of identifying and mitigating risks associated with money laundering and terrorist financing.

Exemptions

In addition, Haiti has established a system for granting exemptions from certain AML requirements in limited and justified circumstances, such as where there is a proven low risk of money laundering and terrorist financing. This approach allows the country to:

• Tailor its AML efforts to the specific risks it faces
• Minimize unnecessary burdens on financial institutions and DNFBPs

Conclusion

Overall, Haiti’s adoption of a risk-based approach to AML is an important step towards strengthening its financial system and combating money laundering and terrorist financing.