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Haiti’s Financial Action Task Force (FATF) Efforts Face Scrutiny Amid Concerns Over Technical Compliance
The Financial Action Task Force (FATF), an intergovernmental organization responsible for setting global standards on anti-money laundering and combating the financing of terrorism, has released its technical compliance report for Haiti. The report reveals a mixed bag of progress in implementing the FATF Recommendations.
Highlights from the Report
- Haiti received ratings ranging from “compliant” to “non-compliant” across various areas.
- The country scored high marks in implementing measures related to:
- National cooperation and coordination (R.2)
- Money laundering offense (R.3)
- Financial institution secrecy laws (R.9)
- However, Haiti fell short in areas such as:
- Non-profit organizations (R.8)
- New technologies (R.15)
- Transparency and beneficial ownership of legal persons and arrangements (R.24 and R.25)
Progress and Challenges
- The report highlighted Haiti’s progress in implementing measures to prevent the misuse of financial institutions for:
- Terrorist financing (R.5)
- Proliferation (R.7)
- It also commended the country’s efforts in establishing a financial intelligence unit (R.29) and providing powers to supervisors (R.27) and law enforcement agencies (R.31).
- However, Haiti was found to be non-compliant in several areas, including:
- Regulation and supervision of non-financial businesses and professions (DNFBPs), particularly with regards to customer due diligence (R.22)
- Preventing the misuse of cash couriers (R.32)
- Providing guidance and feedback to financial institutions (R.34)
Roadmap for Improvement
- The FATF report is seen as a key indicator of Haiti’s progress in combating money laundering and terrorist financing.
- The country’s financial sector has faced numerous challenges, including corruption and a lack of resources, which have hindered its efforts to implement effective anti-money laundering measures.
- Haiti’s authorities are expected to use the report as a roadmap for improving their compliance with FATF Recommendations and enhancing the effectiveness of their anti-money laundering regime.