Haiti at Risk of Being Added to “Grey List” Over Blockchain and Anti-Money Laundering Issues

Port-au-Prince, Haiti - The Financial Action Task Force (FATF) is set to conduct annual checks on countries’ implementation of anti-money laundering and terrorist financing rules for cryptocurrencies, putting Haiti at risk of being added to a “grey list” alongside Syria.

FATF’s New Approach

According to sources familiar with the matter, the FATF’s plans to switch from 10-year mutual evaluations to yearly reviews will give non-compliant countries less time to enact standards set by the intergovernmental organization. This could lead to increased monitoring and even greylisting if they fail to comply with the rules.

Industry Concerns

The crypto industry is worried that governments may react by enacting blanket bans on crypto service providers or pressuring banks to cease servicing platforms to avoid an FATF listing. In response, industry leaders are preparing to unveil proposals at the G20 leaders’ summit in Bali this month aimed at minimizing the potential fallout for cryptocurrency users and exchanges.

Impact on Financial Inclusion

“There’s a real risk this will lead countries to unbank crypto exchanges, which will affect the end user - this is serious,” said Ron Tucker, co-founder of the International Digital Asset Exchange Association (IDAXA). “What’s at stake is financial inclusion. Shutting down this new asset class will really set back those in developing countries without access to banking as well as younger generations in developed countries for whom traditional investments like real estate remain out of reach.”

FATF’s Response

The FATF has not commented on the plans, citing confidentiality, but a spokesperson said the organization does not have enforcement powers and relies on governments to implement its recommendations. Non-compliant countries face significant reputational damage that risks disrupting investment flows and access to the global financial system.

IDAXA’s Proposal

Ahead of the G20 summit, IDAXA is preparing to table a proposed policy framework aimed at minimizing disruption to crypto users and ensuring exchanges are not suddenly frozen out from the global financial system. The organization will meet with FATF officials and finance experts during the V20 dialogue on virtual assets.

Key Points:

• Haiti is at risk of being added to the “grey list” over blockchain and anti-money laundering issues.
• The FATF’s new approach will give non-compliant countries less time to enact standards set by the intergovernmental organization.
• Industry leaders are preparing proposals to minimize the potential fallout for cryptocurrency users and exchanges.
• The crypto industry is concerned about the impact on financial inclusion and the potential for governments to react with blanket bans or pressure banks to cease servicing platforms.