Haiti’s Financial Sector Vulnerable to Cybercrime Amid Crisis
Financial Inclusion Crucial in Combating Humanitarian Crisis
As Haiti struggles with an ongoing humanitarian crisis, its financial sector is increasingly vulnerable to cybercrime, experts warn. The country’s precarious situation has been exacerbated by the 2021 assassination of President Jovenel Moise, successive disaster events, and the resurgence of cholera.
Widespread Poverty Exposes Haitians to Exploitation
With widespread poverty and hunger prevalent, Haitians are highly exposed to kidnappings, systemic violence, and sexual and criminal exploitation. Poor and marginalized communities are particularly vulnerable to modern slavery, with many being trafficked into forced labor or other forms of exploitation within and outside the country.
Financial Sector Constrained by De-Risking
The financial sector has a crucial role to play in anti-traffic efforts, but Haiti’s financial institutions face significant constraints that limit their ability to provide financial inclusion to at-risk populations. De-risking and limited access to financial services have been identified as major factors contributing to financial exclusion, which is a risk multiplier for experiencing exploitation.
United Nations Report Highlights Need for Support
A recent report by the United Nations Human Rights Office of the High Commissioner highlighted the need for the UN to mobilize support and protect at-risk communities in Haiti. The report also emphasized the importance of engaging the financial sector in identifying and addressing slavery and trafficking, as well as reducing financial exclusion.
Finance Against Slavery and Trafficking (FAST) Initiative Study
To address these challenges, a rapid study was conducted by the FAST initiative, which identified community-created financial services as assets that serve as protective factors for underserved populations. The report provided preliminary insights into financial inclusion as a protective factor and the challenges and opportunities unique to the Haitian context.
Recommendations for Reducing Vulnerability
The study recommended four key actions for the financial sector and international community to reduce vulnerability to modern slavery:
1. Support Diverse Formal Financial Services
- Collaborate between Haitian banks, microfinance initiatives, mobile network operators, and FinTech companies
- Offer diverse formal financial services to underserved populations in Haiti
2. Safeguard Informal Financial Services
- Explore ways to safeguard and enhance informal financial services, including solidarity mutuals, cooperatives, and sousous
- These community-created services are crucial for protecting vulnerable populations
3. Prioritize Vulnerable Populations
- Prioritize those most vulnerable to experiencing modern slavery, especially youth and women/girls
- Within financial inclusion strategies and economic empowerment activities
4. Monitor Unintended Consequences
- Monitor for unintended consequences such as increased or sustained financial exclusion and other vulnerabilities to modern slavery during and post the current UN targeted sanction regime
- Improve national and regional data collection, particularly from Civil Society Organizations, on the nature and scale of modern slavery risks for different demographic groups in Haiti
Conclusion
As Haiti faces a precarious future, it is imperative that the financial sector and international community play a constructive role and navigate the humanitarian crisis carefully to protect and extend financial inclusion to the poorest and most marginalized. By supporting collaborative efforts and prioritizing those most vulnerable, we can work towards reducing vulnerability to modern slavery and promoting a more stable and inclusive financial system in Haiti.