FATF status

Haiti is on the FATF List of Countries that have been identified as having strategic AML deficiencies

Latest FATF Statement - 25 October 2024

Since June 2021, when Haiti made a high-level political commitment to work with the FATF and CFATF to strengthen the effectiveness of its AML/CFT regime, Haiti has taken steps towards improving its AML/CFT regime, including improving the FIU’s access to and use of a wide range of information in its financial intelligence products through the adoption of a new organic law. The FATF recognises the political commitment expressed at a high level and the efforts demonstrated by Haiti to advance its commitments in the midst of the challenging social, economic and security situation within the country. Haiti should continue to work on implementing its action plan to address its strategic deficiencies, including by: (1) completing its ML/TF risk assessment process and disseminating the findings; (2) implementing risk-based AML/CFT supervision for all financial institutions and DNFBPs deemed to constitute a higher ML/TF risk; (3) ensuring basic and beneficial ownership information are maintained and accessible in a timely manner; (4) ensuring the FIU has adequate resources and processes to produce and disseminate operational and strategic analysis to competent authorities for combatting ML and TF; (4) demonstrating authorities are identifying, investigating and prosecuting ML cases in a manner consistent with Haiti’s risk profile; (5) demonstrating an increase of identification, tracing and recovery of proceeds of crimes; (6) addressing the technical deficiencies in its targeted financial sanctions regime; and (7) conducting appropriate risk-based monitoring of NPOs vulnerable to TF abuse without disrupting or discouraging legitimate NPO activities.

The FATF notes Haiti’s continued progress across its action plan, however all deadlines are expired and work remains. The FATF encourages Haiti to continue to implement its action plan to address the above-mentioned strategic deficiencies.

Compliance with FATF Recommendations

The last Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Haiti was undertaken in 2019. According to that Evaluation, Haiti was deemed Compliant for 0 and Largely Compliant for 2 of the FATF 40 Recommendations. It was also deemed Highly Effective for 0 and Substantially Effective for 0 with regard to the 11 areas of Effectiveness of its AML/CFT Regime.

Corruption and bribery significantly hinder business operations in Haiti, with the country ranking 172 out of 180 on the 2023 Corruption Perceptions Index. Despite the establishment of the Anti-Corruption Commission and some legal frameworks against corruption, enforcement remains weak and inconsistent. The mismanagement of public funds, particularly highlighted by the Petrocaribe scandal, has fueled public outrage and calls for greater accountability and reform in the country's governance.

Haiti's economy is characterized by significant challenges, including pervasive corruption, inadequate infrastructure, and political instability, which hinder its potential for growth despite having abundant arable land and a youthful population. The country has experienced negative GDP growth, with a contraction of 1.9 percent in 2023, and high inflation rates reaching 27.3 percent, exacerbated by gang-related violence and disruptions in the supply chain. The textile sector, a crucial part of the economy, has seen a drastic reduction in workforce due to these issues, highlighting the urgent need for political and economic stability to improve the investment climate.

Haiti's investment climate presents both opportunities and challenges for foreign investors. While the country has a legal framework that encourages foreign direct investment and offers various incentives, pervasive issues such as political instability, corruption, inadequate infrastructure, and high levels of gang violence significantly hinder the business environment. The recent decline in foreign direct investment inflows and the shrinking workforce in key sectors like textiles underscore the urgent need for reforms to stabilize the economy and improve investor confidence.