Haiti Introduces Beneficial Ownership Transparency Rules to Fight Crime and Terrorism
In a significant move to combat money laundering and terrorist financing, Haiti has implemented new beneficial ownership transparency rules. These measures aim to prevent the misuse of anonymous shell companies by organized criminal gangs, corrupt individuals, and sanctions evaders.
Compliance with Global Standards
The revised Recommendation 24 is part of Haiti’s efforts to comply with global standards set by the Financial Action Task Force (FATF). Under these new rules, competent authorities in Haiti will have access to adequate, accurate, and up-to-date information on the true owners of companies operating within the country. This information will be held by a public authority or body functioning as a beneficial ownership registry or an alternative mechanism that ensures efficient access to the data.
Benefits and Implications
The new rules are expected to significantly reduce the risk of money laundering and terrorist financing by making it more difficult for criminals to hide their dirty money and illicit activities behind anonymous shell companies. The guidance will also help Haiti assess and mitigate the risks associated with foreign companies operating within its borders.
Effective Implementation
To ensure effective implementation, the FATF has provided detailed guidance on types and sources of relevant information, as well as mechanisms and sources to obtain such information. This includes a multi-pronged approach that combines information from various sources, including:
- Companies themselves
- Public authorities in a registry
- Alternative mechanisms that ensure rapid and efficient access to beneficial ownership information
Best Practices
The FATF’s mutual evaluations have shown that countries using a multi-pronged approach are more effective in preventing the misuse of legal persons for criminal purposes and ensuring transparency of beneficial ownership than those using a single approach.
Consultations and Stakeholder Engagement
The guidance has been developed through several months of intense consultations with external stakeholders and the private sector. The aim is to assist policymakers and practitioners in national authorities and the private sector in implementing the necessary measures to prevent shell companies from being used as safe havens for illicit proceeds linked to crime or terrorism.
By introducing these beneficial ownership transparency rules, Haiti demonstrates its commitment to combating money laundering and terrorist financing, while also ensuring compliance with global standards set by the FATF.