Financial Crime World

Haiti’s Financial Institutions Under Scrutiny for Terrorist Financing Links

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Haiti has been placed under increased monitoring by the Financial Action Task Force (FATF) and the European Union (EU) in 2021 and 2022 respectively, as part of efforts to combat terrorist financing and money laundering.

FATF’s Demands

According to FATF officials, Haiti must continue to work on implementing its action plan to address strategic deficiencies in its anti-money laundering and counter-terrorist financing regime. To achieve this, the country is required to:

  • Complete its risk assessment process and disseminate findings
  • Facilitate information sharing with foreign counterparts
  • Address technical deficiencies in its legal and regulatory framework

Key Areas of Focus

The FATF has identified several key areas that Haiti must address, including:

  • Strengthening laws and regulations governing money laundering and terrorist financing offenses
  • Increasing the identification and prosecution of such crimes
  • Conducting risk-based monitoring of non-profit organizations vulnerable to terrorist financing abuse

EU’s Technical Assistance Offer

In response to these demands, the EU Global Facility on Anti-Money Laundering and Counter-Terrorist Financing has begun discussions with Haitian authorities to provide technical assistance in areas such as:

  • Strategic approach and technical assistance coordination committee mentoring
  • Strengthening Haiti’s anti-money laundering and counter-terrorist financing regime

Impact on Haiti’s Financial Sector

The move is seen as a major blow to Haiti’s financial sector, which has long been criticized for its lax regulations and lack of transparency. The country’s inclusion on the FATF and EU high-risk lists raises concerns about the potential for terrorist financing and money laundering activities to go undetected and unchecked.

International Authorities’ Expectations

International authorities are keeping a close eye on Haiti’s progress in addressing these strategic deficiencies, with the hope that the country will take concrete steps to improve its anti-money laundering and counter-terrorist financing regime.