Financial Crime World

Haiti’s Financial Institutions Face Regulatory Updates

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The Financial Action Task Force (FATF) has released its follow-up report evaluating Haiti’s progress in implementing anti-money laundering and combating the financing of terrorism (AML/CFT) regulations. The Benin Follow-Up Report 2023 assesses Haiti’s compliance with 40 recommendations aimed at preventing financial crimes.

Progress and Challenges

According to the report, Haiti has made some improvements since its initial assessment. However, it still faces several challenges in implementing AML/CFT measures. Key findings include:

  • Compliance: Haiti is largely compliant with recommendations R.1 and R.6, which relate to assessing risk and applying a risk-based approach, as well as targeted financial sanctions related to terrorism and terrorist financing.
  • Partially Compliant: The country is partially compliant with recommendations R.4, R.5, and R.10, which deal with confiscation and provisional measures, terrorist financing offence, and customer due diligence, respectively.
  • Non-Compliant: Haiti is non-compliant with several other recommendations, including those related to non-profit organizations, financial institution secrecy laws, and new technologies.

Recommendations

The report highlights the importance of implementing effective AML/CFT regulations to prevent financial crimes and protect the integrity of the global financial system. The Haitian government has been urged to address the remaining shortcomings and strengthen its regulatory framework to ensure compliance with international standards.

Recommendations for Financial Institutions

  • Enhance customer due diligence procedures
  • Implement risk-based approaches
  • Strengthen internal controls and foreign branches and subsidiaries

Deadline and Consequences

The FATF has given Haiti a deadline of 2023 to address the remaining deficiencies and implement the necessary reforms. Failure to comply may result in sanctions or restrictions on financial transactions with international partners.

By implementing these recommendations, Haiti’s financial institutions can ensure compliance with international standards and prevent financial crimes. The Haitian government must take swift action to address the remaining shortcomings and strengthen its regulatory framework.