Financial Crime World

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Haiti’s Banking Industry Adapts to Compliance Regulations

As part of its efforts to strengthen financial regulations, Haiti’s banking industry has been making significant strides in recent years.

Implementing Secure Payment Systems

One notable development is the implementation of the Haitian Interbank Payment System (SPIH), a real-time payment system that allows for secure and traceable transactions between commercial bank accounts. The SPIH has been widely adopted by businesses and individuals alike, thanks to its ease of use, low transaction fees, and high level of security.

Enhancing Customer Convenience

Major banking institutions such as Unibank, SOGEBANK, and Capital Bank have interconnected their ATM systems, allowing debit card holders to make withdrawals from any ATM bearing the “PRONAP” logo. This development is expected to boost financial inclusion and improve access to cash services for residents.

Stricter Measures for Money Transfers

The Haitian Central Bank has announced plans to introduce stricter measures to monitor money transfers in accordance with Haiti’s efforts to deter illicit cash flows, as mandated by the 2013 Anti-Money Laundering Act and the expected implementation of an agreement on the United States Foreign Account Tax Compliance Act (FATCA).

Opening a Bank Account

Residents and foreigners alike can hold bank accounts in Haiti, with accounts available in local currency or USD. To open a personal account, individuals need to provide:

  • Proof of identity
  • Address
  • Residency
  • Initial deposit of at least HTG 2,500 (approximately $18)

Companies wishing to open bank accounts must provide additional documentation, including:

  • Company bylaws
  • Proof of company address
  • Valid licenses to operate

The required initial deposit for corporate accounts is significantly higher, with a minimum of 25,000 HTG (approximately $185) in local currency or USD 2,500.

Foreign Exchange Controls

Foreign exchange controls are also relaxed in Haiti, with no restrictions on the inflow or outflow of capital. The government has implemented measures to deter illicit cash flows and promote transparency, including the publication of a daily reference rate for the Haitian gourde (HTG).

Challenges Ahead

Despite these efforts, the country’s financial sector still faces challenges, including:

  • Currency volatility
  • Lack of predictability

Export-oriented investors have expressed concerns about the fluctuations in the exchange rate, which has experienced a 13 percent appreciation during the current fiscal year.

Improving Transparency and Accountability

In response to these challenges, the government has announced plans to implement stricter measures to monitor money transfers and improve transparency in the financial sector. The implementation of FATCA is also expected to bring greater accountability to the country’s financial institutions.