Financial Crime World

Terrorist Financing Laws in Haiti Under Scrutiny: Experts Assess Compliance and Effectiveness

The Haitian government’s efforts to combat terrorist financing through its anti-money laundering (AML) and combating the financing of terrorism (CFT) systems have come under intense scrutiny. In a recent assessment, experts from the Financial Action Task Force (FATF) evaluated Haiti’s technical compliance with international standards.

Technical Compliance Rating

According to the FATF report, Haiti has made progress in implementing certain AML/CFT measures, such as:

  • Establishing a national risk assessment
  • Identifying high-risk jurisdictions

However, the country still lags behind in other areas, including:

  • Establishing a legal framework for freezing terrorist assets
  • Implementing adequate customer due diligence measures

Effectiveness Rating

The experts also assessed the effectiveness of Haiti’s AML/CFT system, giving it an overall rating of ME or moderate level of effectiveness. While Haiti has made efforts to strengthen its financial intelligence unit and improve international cooperation, there are still concerns about:

  • The adequacy of its sanctions regime
  • The lack of effective enforcement mechanisms

Areas for Improvement

The FATF assessment highlights several areas where Haiti needs to improve in order to effectively combat terrorist financing, including:

  • Strengthening its legal framework for freezing terrorist assets
  • Improving the sharing of financial information with other countries
  • Enhancing its capacity to investigate and prosecute suspected terrorist financing offenses

Response from Haitian Authorities

In response to the report, Haitian authorities have pledged to take immediate action to address the identified shortcomings. This includes:

  • Implementing new regulations to strengthen customer due diligence measures
  • Increasing funding for financial intelligence and investigation agencies
  • Improving international cooperation on AML/CFT matters

Conclusion

The FATF assessment is a critical step in Haiti’s efforts to combat terrorist financing and improve its overall anti-money laundering and combating the financing of terrorism regime. The country’s commitment to implementing the recommendations will be closely monitored by the international community, and it remains to be seen whether Haiti can effectively address the identified concerns and prevent the misuse of its financial system for terrorist purposes.