Financial Crime World

Here is the converted article in markdown format:

Haiti Struggles to Combat Money Laundering and Terrorist Financing

Introduction

Despite a small economic growth in 2017, Haiti continues to face significant challenges in combating money laundering and terrorist financing.

Country Profile

  • GDP: approximately $8.4 billion
  • Foreign remittances contribute around 29.4% of the total GDP
  • Geographical location, corruption, and natural disasters make it a prime destination for criminals

Challenges

  • Porous borders and limited resources facilitate illegal activities such as:
    • Narcotics trafficking
    • Smuggling of illicit cash
  • Corruption remains a significant issue, with:
    • Insurance companies, microfinance institutions, and other sectors unsupervised for AML/CTF compliance
  • Lack of resources, legislative weaknesses, and lack of training hinder effective implementation of AML/CTF measures

Inadequate AML/CTF Framework

  • Haiti has not conducted a risk assessment for money laundering and terrorist financing
  • Financial institutions are aware of some threats and vulnerabilities affecting the jurisdiction but no policies or risk-mitigating measures have been implemented by authorities
  • As a result, some financial institutions have resorted to de-risking practices, terminating relationships with customers considered vulnerable to money laundering and terrorist financing

Consequences

  • Haiti has achieved a low level of effectiveness in all eleven immediate outcomes
  • Failure to combat money laundering and terrorist financing poses significant risks not only to its financial system but also to regional and global security

Experts’ Warning

Experts warn that the country’s failure to combat money laundering and terrorist financing is a serious concern, requiring urgent attention and action from authorities.