Financial Crime World

HAITI FAILS TO MEET INTERNATIONAL STANDARDS IN FIGHTING TERRORISM FINANCING AND FINANCIAL CRIME

Port-au-Prince, Haiti - The Financial Action Task Force (FATF) has released a report highlighting significant shortcomings in Haiti’s efforts to combat terrorism financing and financial crime. According to the report, Haiti failed to meet several of the FATF’s technical recommendations, leaving it vulnerable to financial abuse.

Assessment Report Highlights Key Shortcomings

The Benin Follow-Up Report 2023 assessed Haiti’s progress in implementing the FATF Recommendations, a set of international standards aimed at preventing the misuse of its financial system for criminal activities. The report found that Haiti has made some progress, but remains largely non-compliant with several key recommendations.

Non-Compliance Areas

  • Transparency and beneficial ownership of legal persons and arrangements
  • Regulation and supervision of designated non-financial businesses and professions (DNFBPs)
  • Financial intelligence unit lacks adequate resources or authority to effectively perform its duties

Partial Compliance Areas

  • Confiscation and provisional measures
  • Terrorist financing offence
  • Targeted financial sanctions related to terrorism and proliferation

Areas of Compliance

  • Assessing risk and applying a risk-based approach
  • National cooperation and coordination
  • Money laundering offence
  • Customer due diligence

Urgent Action Required

The report’s findings are a wake-up call for Haiti’s government and financial sector, highlighting the need for urgent action to strengthen its anti-money laundering and combating terrorist financing (AML/CFT) regime. Failure to do so could lead to serious consequences, including increased risk of financial crimes and damage to the country’s international reputation.

FATF Urges Reform and Offers Technical Assistance

The FATF has urged Haiti to address the report’s findings and implement necessary reforms to bring it into compliance with international standards. The organization has also offered technical assistance to help Haiti improve its AML/CFT regime.