Here is the converted article in markdown format:

Haiti: Due Diligence Procedures for Financial Transactions Essential for Foreign Investors

As foreign investors consider doing business in Haiti, it is crucial to understand the country’s financial landscape and due diligence procedures for transactions. According to experts, Haiti’s financial system is predominantly cash-based, with debit cards and credit cards being accepted by established businesses.

Financial System Overview

• The Haitian Central Bank (BRH) has announced that starting October 1, 2020, ATM systems of major banking institutions such as Unibank, SOGEBANK, Capital Bank, cooperatives like Kotelam in the West Department and Koples in the Northwest Department are interconnected for debit card holders who bank with those institutions.
• This move aims to increase financial inclusion by allowing debit card holders to make withdrawals from any ATM bearing the “PRONAP” logo, which indicates interoperability.

Due Diligence Requirements

To open a bank account in Haiti:

• Individuals and legal entities must provide specific documents, including:
  • Valid identification cards or passports
  • Proof of address
  • A minimum deposit requirement
• For individual accounts, the required initial deposit is 2,500 Haitian gourdes (HTG)
• For corporate accounts, it is 25,000 HTG

Foreign Exchange Controls

• There are minimal foreign exchange controls in Haiti, with no restrictions on capital inflows or outflows.
• The Law of 1989 governs international transfer operations and remittances, which were equivalent to approximately eleven percent of GDP as of September 2022.

Anti-Money Laundering Regulations

• While there are no restrictions on foreign payments or fund transfer transactions, investors must be aware that the Haitian gourde (HTG) is subject to market fluctuations.
• The BRH publishes a daily reference rate, which is a weighted average of exchange rates offered in the formal and informal exchange markets.

Recommendations for Foreign Investors

• Foreign investors are advised to work with reputable banks and financial institutions that have experience handling international transactions. Citibank is the only U.S. bank in Haiti, primarily serving corporate accounts.
• It is essential to exercise due diligence when conducting financial transactions in Haiti.

Conclusion

Due diligence procedures for financial transactions in Haiti require foreign investors to be aware of the country’s financial landscape, including its banking system, foreign exchange controls, and anti-money laundering regulations. By understanding these procedures, investors can minimize risks and ensure a successful business venture in Haiti.