Financial Crime World

Haiti Sanctions: US Slaps Financial Sanctions on Former Haitian Official for Corruption

The United States has imposed financial sanctions on Gary Bodeau, a former President of the Haitian Chamber of Deputies, for his extensive involvement in corruption in Haiti.

Background

As part of efforts to hold accountable those undermining the integrity of Haiti’s government and destabilizing the country, the US has taken action against corrupt officials like Bodeau. According to officials, Bodeau was involved in several corrupt schemes, including:

  • Facilitating and soliciting bribes worth millions of dollars
  • Paying Haitian officials to secure their votes while seeking ministerial position appointments
  • Soliciting a large bribery payment from senior government officials in exchange for his political support

Sanctions

The sanctions were announced by the Department of the Treasury’s Office of Foreign Assets Control (OFAC) as part of its efforts to implement Executive Order 13818, which targets perpetrators of serious human rights abuse and corruption around the world.

  • Freeze on assets: Any assets Bodeau may have in the United States are frozen.
  • Prohibition on transactions: US persons are prohibited from engaging in transactions with him or entities owned by him.
  • Financial risks: Financial institutions and other persons that engage in certain transactions or activities with sanctioned individuals may expose themselves to sanctions or be subject to enforcement action.

Context

This latest move follows a December action in which OFAC designated two Haitian politicians for abusing their power to further drug trafficking activities in the region. The US Treasury has pledged to continue taking action to hold accountable those responsible for instability in Haiti.

Global Magnitsky Human Rights Accountability Act

Executive Order 13818 is built upon the Global Magnitsky Human Rights Accountability Act, which aims to:

  • Impose tangible and significant consequences on those who commit serious human rights abuse or engage in corruption
  • Protect the financial system of the United States from abuse by these same persons

By taking action against corrupt officials like Bodeau, the US is sending a strong message that it will not tolerate corruption and instability in Haiti.