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Mutual Evaluation Report - Republic of Haiti

Introduction

The Mutual Evaluation Report for the Republic of Haiti assesses the country’s progress in implementing anti-money laundering (AML) and combating financing terrorism (CFT) measures. This report evaluates Haiti’s compliance with the Financial Action Task Force (FATF) Recommendations and provides recommendations for improvement.

Progress Made

Haiti has made significant progress in enacting and amending AML/CFT laws and measures. The country has:

  • Enacted a new anti-money laundering law that strengthens its AML/CFT framework
  • Established an Anti-Money Laundering Unit (UAM) within the Ministry of Economy and Finance
  • Developed a National Risk Assessment (NRA) to identify and mitigate ML/TF risks

Significant Deficiencies

Despite progress, Haiti still faces significant challenges in implementing effective AML/CFT measures. The report highlights five key areas where improvement is needed:

1. Lack of Resources

  • Insufficient funding for UAM and other competent authorities
  • Limited capacity to investigate and prosecute ML/TF cases
  • Inadequate training for law enforcement officials and judges

2. Legislative Weaknesses

  • Lack of clarity in AML/CFT laws and regulations
  • Inadequate penalties for ML/TF offenses
  • Limited powers for competent authorities to investigate and prosecute ML/TF cases

3. Inadequate Supervision and Regulation

  • Insufficient oversight of financial institutions (FIs) and designated non-financial businesses and professions (DNFBPs)
  • Limited effectiveness in monitoring and reporting suspicious transactions
  • Inadequate enforcement of AML/CFT regulations

4. Limited Effectiveness in Investigating and Prosecuting ML/TF Cases

  • Insufficient resources and capacity to investigate and prosecute ML/TF cases
  • Limited cooperation between law enforcement agencies and judicial authorities
  • Inadequate use of asset forfeiture and confiscation powers

5. Lack of Confiscation Results

  • Inadequate confiscation of assets related to ML/TF offenses
  • Limited use of asset confiscation as a deterrent for ML/TF activities
  • Insufficient transparency in asset confiscation proceedings

Recommendations

The report concludes that Haiti has achieved a low level of effectiveness in all eleven immediate outcomes (IOs) and recommends the following:

  1. Strengthen UAM’s capacity to investigate and prosecute ML/TF cases
  2. Improve legislative weaknesses by clarifying AML/CFT laws and regulations
  3. Enhance supervision and regulation of FIs and DNFBPs
  4. Increase cooperation between law enforcement agencies and judicial authorities
  5. Improve asset confiscation procedures and use confiscation as a deterrent for ML/TF activities

By addressing these deficiencies, Haiti can improve its effectiveness in combating money laundering and terrorist financing, strengthening its financial system, and protecting the integrity of its economy.