Financial Crime World

Financial Institution Compliance Requirements in Haiti: A Country’s Struggle to Meet International Standards

Haiti’s Financial Sector at Risk Due to Non-Compliance with FATF Recommendations

In its latest assessment, Benin has been deemed “largely compliant” with the Financial Action Task Force (FATF) Recommendations, a set of global standards aimed at preventing money laundering and terrorist financing. However, Haiti’s compliance record is a different story.

Challenges in Implementing FATF Recommendations

The Haitian government has struggled to implement many of the technical requirements outlined in the FATF Recommendations. According to the latest report, Haiti scored poorly on several key areas, including:

  • National cooperation and coordination
  • Money laundering offense
  • Confiscation and provisional measures

Areas of Improvement

Despite its struggles, Haiti did show some improvement in a few areas, including:

  • Implementation of financial institution secrecy laws: earning a “compliant” rating from the FATF
  • Implementation of targeted financial sanctions related to terrorism and terrorist financing

Ongoing Challenges

However, there are still many areas where Haiti falls short. The country scored poorly on:

  • Customer due diligence
  • Record keeping
  • Reliance on third parties

Additionally, Haiti failed to meet international standards for:

  • Transparency and beneficial ownership of legal persons and arrangements

Risks Associated with Non-Compliance

The lack of compliance with these requirements poses significant risks to the financial sector in Haiti, including:

  • Increased vulnerability to money laundering
  • Increased risk of terrorist financing

Government Efforts to Improve AML/CFT Regime

The Haitian government has acknowledged the need for improvement and is working to strengthen its anti-money laundering and combating the financing of terrorism (AML/CFT) regime. This includes implementing new regulations, supervisory measures, and increasing cooperation with international partners.

Conclusion

By improving its AML/CFT regime and enhancing public awareness of risks, Haiti can reduce the risk of financial crimes and improve its reputation as a safe and secure place for financial transactions.