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HAITI: Financial Sector Must Act to Prevent Modern Slavery in Crisis-Torn Country

Haiti’s ongoing crisis, exacerbated by political instability, natural disasters, and a resurgence of cholera, has pushed millions of people into poverty and hunger. The precarious situation has made Haitians increasingly vulnerable to kidnappings, violence, and sexual exploitation, with many poor and marginalized communities at risk of modern slavery.

The Reality of Modern Slavery in Haiti

According to the 2022 Trafficking in Persons report by the United States, Haiti is a significant source country for forced labor and other forms of modern slavery. In 2021, up to 60,000 Haitians were repatriated from the Dominican Republic. The Inter-Agency Coordination Group Against Trafficking in Persons (ICAT) has called on the financial sector to engage in anti-trafficking efforts, promoting financial inclusion and responsible financial products that are accessible to at-risk communities.

Challenges Facing Haiti’s Financial Sector

However, Haiti’s financial sector faces significant challenges. The country is under “Increased Monitoring” by the Financial Action Task Force (FATF) due to deficiencies in its regime to counter money laundering, terrorist financing, and proliferation financing. This has led to de-risking and limited access to financial services, increasing the risk of modern slavery.

Key Recommendations for Reducing Vulnerability

A recent rapid study conducted by the Finance Against Slavery and Trafficking (FAST) initiative and the Interuniversity Institute for Research and Development (INURED) identified community-created financial services as assets that serve as protective factors for underserved populations. The report provides four key recommendations to reduce vulnerability to modern slavery:

  • Support formal financial services: Collaborate with organizations to offer diverse formal financial services to underserved populations in Haiti.
  • Enhance informal financial services: Explore ways to safeguard and enhance informal financial services, such as solidarity mutuals and cooperatives.
  • Prioritize vulnerable populations: Prioritize those most vulnerable to experiencing modern slavery within financial inclusion strategies and economic empowerment activities.
  • Monitor UN targeted sanctions: Monitor for unintended consequences of the UN targeted sanction regime and develop public-private partnerships with financial sector integration to improve practices and policies for identifying, reducing, addressing, and preventing ongoing modern slavery risks in Haiti.

Conclusion

The report highlights that vulnerabilities to modern slavery can be substantially reduced if the financial sector and international community play a constructive role and navigate the humanitarian crisis carefully to protect and extend financial inclusion to the poorest and most marginalized. It is crucial for the financial sector to take action to prevent modern slavery in Haiti and support the country’s recovery from crisis.