Haiti Makes Progress on Corruption Perception Index, But Still Struggles with Money Laundering and Terrorism Financing
Progress Made, Challenges Remain
Despite making progress on its Corruption Perception Index (CPI) ranking, Haiti still faces significant challenges in combating money laundering and terrorism financing. The country’s financial system remains vulnerable to these threats due to inadequate supervision and regulation of key sectors.
Mutual Evaluation Report Highlights Weaknesses
The latest Mutual Evaluation Report by the Caribbean Financial Action Task Force (CFATF) highlighted several weaknesses in Haiti’s anti-money laundering and combating the financing of terrorism (AML/CFT) framework. These include:
- Inadequate supervision and regulation of insurance companies, microfinance institutions, and real estate
- Lack of resources and legislative weakness in efforts to combat money laundering and terrorism financing
- Insufficient investigations and prosecutions by competent authorities
- Poor confiscation results compared to perceived risks
No Risk Assessment Conducted
Despite committing to conduct a National Risk Assessment (NRA), Haiti has not yet done so. The authorities have expressed their intention to conduct an NRA under the Ministry of Justice and Public Security, but no timeline has been provided.
De-Risking Practices Widespread
Some financial institutions are engaging in de-risking practices, terminating or refusing to onboard customers considered vulnerable to money laundering and terrorist financing.
Recommendations from CFATF
The CFATF report recommended that Haiti take immediate action to address these deficiencies and bring its AML/CFT framework in line with international standards.
Progress on Corruption Perception Index
Despite these challenges, Haiti has made progress on its CPI ranking, rising from 174 out of 180 countries in 2020 to 162 in 2022. However, more needs to be done to address the root causes of corruption and ensure that the country’s financial system is protected from money laundering and terrorist financing.
Haitian Authorities Commit to Implementing Recommendations
The Haitian authorities have committed to implementing the recommendations outlined in the report and are working towards strengthening their AML/CFT framework. The CFATF has also offered technical assistance to support Haiti’s efforts to improve its anti-money laundering and combating the financing of terrorism regime.
Conclusion
While Haiti has made progress on its CPI ranking, it still faces significant challenges in combating money laundering and terrorism financing. It is essential for the country to address these weaknesses and strengthen its AML/CFT framework to protect its financial system and prevent illicit activities.