HAITI RANKED WORST IN THE WORLD FOR ANTI-MONEY LAUNDERING EFFORTS, REPORT SAYS

Second-Worst Country in the World for AML Efforts

A recent report by the Basel Institute has ranked Haiti as the second-worst country in the world for its anti-money laundering (AML) efforts. The report evaluated 203 countries and jurisdictions and found that Haiti’s political elites have been embroiled in money laundering investigations at the highest levels.

Political Elites Embroiled in Money Laundering Investigations

According to the report, Haiti’s current and former political leaders have faced international sanctions for corruption and financing gangs. The country’s previous president, Jovenel Moïse, who was assassinated in July 2021, was under investigation for money laundering before he even began his term.

Failed Prosecutions and Convictions

The report also found that Haiti has a history of failed prosecutions and convictions for money laundering offenses. In 2019, the Financial Action Task Force (FATF) evaluated Haiti’s AML efforts and noted that the country had not recorded any successful prosecutions or convictions for money laundering offenses in five years.

Structural Problems Contribute to Poor AML Record

Experts have pointed to structural problems in Haiti’s government as a major contributor to its poor AML record. The country’s constitution grants members of parliament immunity while they are in office, making it difficult to prosecute them for financial crimes.

Close Ties between Corruption and Money Laundering

The report also highlighted the close ties between corruption and money laundering in Haiti. According to Global Financial Integrity (GFI), the only issue more pervasive in Haiti than money laundering is corruption.

Dominica’s Strong AML Efforts

Dominica, a small Caribbean island, was ranked as having the region’s best overall score in the Basel index, outpacing the world average on political and legal risk, as well as for the risk of corruption, bribery, and general money laundering risk. However, experts were not unanimous in their praise, with GFI ranking Dominica’s effectiveness at 2.5 out of 5.

Mexico’s Stringent Laws

The report also highlighted Mexico’s stringent laws for personal asset declarations and election financing transparency, which were ranked among the best in the world. However, corruption and bribery remained major issues in the country, with a lack of big-name convictions and threats made against investigators hindering progress.

Brazil’s AML Efforts Criticized

Brazil was also criticized for its AML efforts, with the report highlighting the country’s history of corruption and money laundering scandals. The new president, Luiz Inácio Lula da Silva, has faced his own money laundering scandals in connection with the sweeping Lava Jato investigation, which found extensive corruption between Latin American politicians and Brazilian construction giant Odebrecht.

Dominica’s Low Risk of Money Laundering

In contrast, the report praised Dominica’s small size, lack of real estate infrastructure, and limited trade as contributing to its low risk of money laundering. The country also engages in relatively little trade, with combined exports and imports barely exceeding $400 million according to CIA estimates in 2021.

A Major Driver for Money Laundering

Despite its top ranking, Dominica is one of many Caribbean transshipment points for illegal narcotics en route from South America to the European continent, making it a major driver for money laundering on the island.