Haiti Embraces Risk-Based Approach to Anti-Money Laundering Efforts

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Haiti has taken a significant step towards strengthening its anti-money laundering (AML) regime by adopting a risk-based approach to combat financial crimes. The country’s authorities have identified, assessed, and understood the money laundering and terrorist financing risks it faces, and are now taking action to mitigate them effectively.

Key Components of Haiti’s Risk-Based Approach

• Designated an authority responsible for coordinating actions to assess risks and allocating resources to ensure that measures to prevent or mitigate AML/CFT (Anti-Money Laundering/Countering the Financing of Terrorism) are commensurate with the identified risks.
• Identified, assessed, and understood the money laundering and terrorist financing risks it faces.

Importance of Risk-Based Approach

According to experts, countries like Haiti that identify higher risks must ensure their AML/CFT regime adequately addresses these risks. Conversely, those that identify lower risks may opt for simplified measures for certain FATF (Financial Action Task Force) Recommendations under specific conditions.

Enhanced Transparency and Accountability

The Haitian authorities have also emphasized the importance of requiring financial institutions and designated non-financial businesses and professions (DNFBPs) to:

• Identify, assess, and take effective action to mitigate their own money laundering and terrorist financing risks.
• Enhance transparency and accountability in Haiti’s financial sector.

International Recognition

By adopting a risk-based approach, Haiti is taking a significant step towards enhancing its AML/CFT regime and protecting its financial system from illegal activities. The country’s efforts are being closely monitored by international authorities, who hope that its experience will serve as a model for other nations to follow.