Haiti Under Fire for Financial Crime and Terrorism Financing Issues
International Concerns Mount as Haiti Fails to Address Anti-Money Laundering and Counter-Terrorism Finances Regime
In a move that has sparked concern among international authorities, Haiti was officially listed as a jurisdiction under increased monitoring by the Financial Action Task Force (FATF) in 2021. The European Union (EU) followed suit earlier this year, adding the Caribbean nation to its list of high-risk third countries.
FATF’s Concerns and Recommendations
The FATF has identified several strategic deficiencies that need to be addressed, including:
- Completing a money laundering/terrorist financing risk assessment process and disseminating the findings
- Facilitating information sharing with foreign counterparts
- Addressing technical deficiencies in its legal and regulatory framework, which impede the implementation of anti-money laundering and counter-terrorist financing measures
Urgent Actions Required
Haiti is being urged to:
- Implement risk-based supervision for all financial institutions and non-profit organizations deemed to be at a higher risk of money laundering and terrorist financing
- Improve the maintenance and accessibility of basic and beneficial ownership information in a timely manner
- Ensure that its financial intelligence agencies are using relevant information effectively to combat money laundering and terrorism financing
Concerns Over Money Laundering Cases and Targeted Financial Sanctions Regime
The FATF has expressed concerns over Haiti’s ability to:
- Identify, investigate, and prosecute money laundering cases
- Demonstrate an increase in the identification, tracing, and recovery of proceeds from crimes
- Improve its risk-based monitoring of non-profit organizations vulnerable to terrorist financing
Technical Assistance Offered by EU Global Facility
The EU Global Facility on Anti-Money Laundering and Combating the Financing of Terrorism has begun discussions with Haitian authorities to provide technical assistance on strategic approaches and coordination committee mentoring. This move aims to help Haiti address its financial crime and terrorism financing issues and bring it in line with international standards.
Experts Warn of Serious Consequences
Experts warn that the failure to address these concerns could have serious consequences for Haiti’s economy and national security, as well as undermine efforts to combat global terrorism. It is essential that Haiti takes immediate action to address its financial crime and terrorism financing issues to avoid severe repercussions.