Financial Crime World

HAITI FACES Scrutiny OVER MONEY LAUNDERING REGULATIONS AS EU AND FATF DEMAND IMPROVEMENTS

Introduction

Port-au-Prince, Haiti - In a significant blow to its international reputation, Haiti has been placed under increased monitoring by the Financial Action Task Force (FATF) and added to the European Union’s list of high-risk third countries. The move follows concerns over the country’s ability to combat money laundering and terrorist financing.

Concerns Over AML/CFT Regime

According to sources close to the situation, Haiti has committed to strengthening its anti-money laundering and counter-terrorist financing (AML/CFT) regime. However, FATF is urging the government to take immediate action to address strategic deficiencies. Specifically, Haitian authorities have been told to:

  • Complete a risk assessment process
  • Share information with foreign counterparts
  • Implement risk-based supervision for financial institutions and non-profit organizations deemed high-risk

Haiti has also been tasked with improving its legal framework, including ensuring basic ownership information is maintained and using financial intelligence more effectively to combat money laundering. The country must also:

  • Demonstrate an increase in the identification, tracing, and recovery of criminal proceeds
  • Strengthen its targeted financial sanctions regime

EU Providing Technical Assistance

The European Union Global Facility on AML/CFT has begun providing technical assistance to Haiti, with discussions centered around a strategic approach and coordination committee mentoring. This move is seen as a critical step towards addressing Haiti’s AML/CFT shortcomings and bringing the country in line with international standards.

Consequences of Inclusion on EU’s High-Risk List

Haiti’s inclusion on the EU’s high-risk list is expected to have significant consequences for financial institutions operating within the country, including increased scrutiny and potential sanctions for non-compliance. As the situation continues to unfold, it remains to be seen whether Haiti will take the necessary steps to address its AML/CFT deficiencies and avoid further international censure.

Conclusion

The recent developments highlight the importance of addressing money laundering and terrorist financing concerns in Haiti. It is crucial that the country takes immediate action to strengthen its AML/CFT regime and comply with international standards to avoid further consequences.