Financial Crime World

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HAITI SEES PROGRESS IN FINANCIAL REPORTING AND COMPLIANCE EFFORTS

In a significant step towards strengthening its investment climate and fostering private sector development, Haiti has made notable progress in overhauling its financial reporting and compliance practices.

Background

Haiti’s corporate sector accounting and auditing practices have long been plagued by weaknesses, hindering investment and economic growth. The country’s statutory framework governing financial reporting is incomplete and loosely enforced, while a lack of trained local accountants and a “brain drain” has exacerbated the problem.

Strengthening Accounting and Audit Practices Project

To address these issues, the Strengthening Accounting and Audit Practices Project was launched with the support of the World Bank Group. The project aims to introduce International Financial Reporting Standards (IFRS) in a gradual and multi-tier manner. Additionally, an innovative balance sheet database will be developed to feed financial information into business statistics and a national accounts framework.

Results

The project has yielded significant results, including:

  • A clear roadmap for strengthening Haiti’s accounting and auditing practices
  • Updates to the chart of accounts
  • A modern statutory and regulatory framework
  • Association with international bodies such as IFAC and the International Accounting Education Standards Board (IAESB) through the Institute of Licensed Professional Accountants in Haiti (OCPAH)

Funding

The project has received funding from the World Bank Group, which provided $245,000 for advisory and design services from August 2010 to October 2012. The Bank’s support will continue through an additional financing of an emergency project that became effective in February 2013.

Benefits

The project is expected to benefit not only financial accounting and auditing institutions but also the private sector as a whole. Improved accounting standards and performance will strengthen investor confidence, leading to greater growth in Haiti’s private sector. As Joseph Paillant, former OCPAH president, noted:

“Haitian professional accountants could be in great demand in the Caribbean if they make the right choice today of reforming the organization of the profession and converging toward international accounting standards.”

Conclusion

Haiti’s progress in financial reporting and compliance efforts is a significant step towards strengthening its investment climate and fostering private sector development. The project has achieved notable results, and with continued support, it is expected to bring about long-term benefits for the country’s economy.