Haiti’s Financial Institutions Eye Compliance with New Regulations
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The Haitian financial sector is taking significant steps to strengthen its regulatory compliance framework in an effort to combat illicit cash flows and meet international standards.
Stricter Measures for Money Transfers
As part of these efforts, the government has announced plans to implement stricter measures to monitor money transfers, following the passage of the 2013 Anti-Money Laundering Act. This move comes ahead of the expected implementation of an agreement on the United States Foreign Account Tax Compliance Act (FATCA).
Enhancing Transparency and Accountability
Financial institutions in Haiti are being urged to implement robust anti-money laundering measures, including:
- Customer due diligence
- Ongoing monitoring
This is aimed at enhancing transparency and accountability in the financial sector.
Improvements in Payment Systems
The Haitian Central Bank (BRH) has taken steps to improve the country’s payment systems. In October 2020, it announced that ATM machines of major banking institutions such as Unibank, SOGEBANK, Capital Bank, cooperatives like Kotelam in the West Department and Koples in the Northwest Department are now interconnected for debit card holders who bank with those institutions.
Interoperability and Convenience
This move has made it easier for individuals to access their funds across different financial institutions. With the introduction of the PRONAP logo, debit card holders can make withdrawals from any ATM bearing this mark, indicating interoperability.
Opening Bank Accounts in Haiti
Residents and foreigners alike can open bank accounts in Haiti, either in local currency or USD. The required documents include:
- A valid identity card or passport
- Resident permit
- Proof of address
- Minimum deposit:
- HTG 2,500 (approximately $185 as of September 2023) for local currency accounts
- USD 2,500 if opened in US currency
For legal entities, the initial deposit is:
- HTG 25,000 (around $185 as of September 2023) if opened in local currency or USD
- Two valid pieces of identification are required for each signatory on the account, along with proof of address.
Foreign Payments and Fund Transfers
The government has removed restrictions on foreign payments and fund transfer transactions, allowing residents to hold foreign currency in bank accounts without limit. The Haitian gourde (HTG) is convertible for commercial and capital transactions, with banks and currency exchange companies setting their rates at the market-clearing rate.
Currency Fluctuation Concerns
Despite these developments, the gourde has experienced a 13 percent appreciation during FY22-23, causing concerns among export-oriented investors due to its lack of predictability and wide fluctuation. The government is working to stabilize the currency and enhance investor confidence in the financial sector.
Role of U.S. Banks
U.S. banks are also playing a significant role in Haiti’s financial landscape. Citibank is the only U.S. bank operating in the country, primarily serving corporate accounts. However, there are no local correspondent banks.
Enhanced Transparency and Accountability
The Haitian government has expressed an intention to implement stricter measures to monitor money transfers, in line with international standards and best practices. This move is expected to enhance the country’s financial stability and attractiveness to investors.