Financial Crime World

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Haiti Faces Increased Scrutiny Over Anti-Money Laundering Efforts

The Financial Action Task Force (FATF) has been closely monitoring Haiti’s progress in addressing its anti-money laundering and counter-terrorist financing (AML/CFT) deficiencies. Despite efforts made by Haitian authorities, the country remains on a list of high-risk jurisdictions.

EU Adds Haiti to List of High-Risk Third Countries

In March 2022, the European Union added Haiti to its list of high-risk third countries, prompting the FATF to renew its call for the island nation to strengthen its AML/CFT regime. The move highlights the need for Haiti to address several key issues that persist, including:

  • Lack of Effective Risk Assessment: Haiti has yet to complete a comprehensive money laundering/terrorist financing (ML/TF) risk assessment process and disseminate its findings.
  • Inadequate Information Sharing: Haitian authorities must enhance cooperation with relevant foreign authorities to facilitate information sharing.

Areas in Need of Improvement

The FATF has identified several areas that require improvement:

  • Risk Assessment and Supervision: Haiti’s AML/CFT framework needs addressing, and risk-based supervision for high-risk financial institutions and non-profit organizations must be implemented.
  • Beneficial Ownership Information: Haitian authorities must ensure timely access to beneficial ownership information and improve the use of financial intelligence by competent authorities.
  • Prosecution of Money Laundering Cases: Haitian authorities must demonstrate a more effective prosecution of money laundering cases, increase the recovery of proceeds from crime, and strengthen its targeted financial sanctions regime.
  • Monitoring Non-Profit Organizations: Haiti needs to improve its monitoring of non-profit organizations vulnerable to terrorist financing abuse.

EU Provides Technical Assistance

The EU Global Facility on AML/CFT has begun providing technical assistance to Haiti in an effort to address these issues and help the country move towards a more robust AML/CFT regime. However, significant work remains to be done if Haiti is to meet international standards and avoid continued monitoring by the FATF.