Financial Crime World

Haiti Makes Progress on Structural Reforms Despite Challenges

Despite facing multiple challenges, Haiti has continued to implement its structural reform agenda, supported by the International Monetary Fund (IMF), according to a recent report.

Governance and Public Financial Management

The country met all its end-April 2023 structural benchmarks and made significant progress in other areas. The authorities have implemented reforms in governance and public financial management, including:

  • Improving transparency at the Economic and Social Assistance Fund (FAES) by publishing quarterly reports on its operations
  • Expanding the Treasury Single Account (TSA)
  • Adopting a medium-term budget framework

Tax Administration

In tax administration, the government has implemented reforms, including:

  • Issuing a decree making the use of Taxpayer Identification Numbers (TINs) compulsory for all finance departments
  • Publishing the TIN database and active taxpayers’ file in April 2023

Central Bank Law and Anti-Money Laundering

The authorities have completed the benchmark on finalizing amendments to the central bank law, which was ratified by the Board of Directors at the end of April 2023. This marks a key milestone in implementing the recommendations of the 2019 Safeguards Assessment.

Additionally, the government has drafted a new decree that is more aligned with international standards and was endorsed by the Council of Ministers in anti-money laundering measures.

Macroeconomic Outlook

The country’s macroeconomic outlook remains challenging, with growth expected to be muted at 0.1 percent in FY2023 due to the security crisis. However:

  • Inflation is expected to decline
  • The projected path of public debt is sustainable

Policy Discussions and Fiscal Sustainability

In policy discussions, domestic revenue has been stronger than in previous years, rising by 48 percent due to improvements in revenue administration and the government’s ability to collect taxes on fuel imports at a new regulated price.

The country’s spending related to the Fiscal Sustainability and Growth (FSW) program has not yet been spent, as the authorities are committed to following proper procurement processes and respecting safeguards agreed under the RCF.