Financial Crime World

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Haiti Embarks on Risk-Based Approach to Combat Money Laundering and Terrorist Financing

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In a significant move, Haiti is adopting a risk-based approach to combating money laundering and terrorist financing. This strategic shift is aimed at ensuring that financial institutions and public authorities prioritize efforts based on the level of risk posed by various activities.

Guidance Paper Provides Framework for Risk-Based Approach

The guidance paper, developed in collaboration with international experts from the Financial Action Task Force (FATF), provides high-level principles for applying a risk-based approach to combating money laundering and terrorist financing. The document serves as a framework for public authorities and financial institutions to identify and mitigate risks associated with these illicit activities.

Target Audience and Structure

The guidance paper is primarily targeted at public authorities and financial institutions in Haiti, although many of its principles can be applied to designated non-financial businesses and professions. The document is structured into three interdependent sections:

  • Key elements of the risk-based approach
  • Guidance for public authorities
  • Guidance for financial institutions

Risk-Based Approach Recognizes Unique Risks and Challenges

The risk-based approach recognizes that each country has unique risks and challenges, requiring a tailored regime to address these issues effectively. As such, the guidance does not propose a one-size-fits-all model but instead provides a broad framework based on high-level principles and procedures that countries can consider when implementing their own risk-based approaches.

Adoption of Risk-Based Approach Enhances Transparency and Regulatory Oversight

Haiti’s adoption of this approach is seen as a significant step forward in combating money laundering and terrorist financing, particularly given the country’s efforts to rebuild its economy and financial sector following recent challenges. By prioritizing a risk-based approach, Haiti aims to:

  • Enhance transparency
  • Improve regulatory oversight
  • Reduce the risks associated with these illicit activities

International Cooperation and Information Sharing Expected to Increase

Experts believe that this shift will not only help Haitian authorities better target their efforts but also promote international cooperation and information sharing in the fight against money laundering and terrorist financing.