Haiti -- AML/CFT Compliance Regulatory Overview

While Haiti has a foundational anti-money laundering and combating the financing of terrorism (AML/CFT) framework, it's important to note that as of my last update, Haiti does not yet have a comprehensive, dedicated regulatory framework specifically for virtual assets (VAs) or virtual asset service providers (VASPs) that explicitly details licensing or specific AML/CFT rules for the crypto sector.

However, this does not mean VASPs operating in Haiti are exempt from AML/CFT obligations. The general AML/CFT legislation applies to all financial activities, and the Banque de la République d'Haïti (BRH) and the Unité Centrale de Renseignements Financiers (UCREF) are the primary bodies responsible for supervising and enforcing AML/CFT compliance. Haiti, as a member of the Caribbean Financial Action Task Force (CFATF) and therefore aligned with the Financial Action Task Force (FATF) standards, is expected to apply AML/CFT requirements to VASPs under Recommendation 15 of the FATF Recommendations.

This means that while specific "crypto laws" might be absent, VASPs are expected to comply with the spirit and letter of existing AML/CFT laws applicable to other financial institutions.

Here's a breakdown based on Haiti's general AML/CFT framework, as it would likely be interpreted and applied to VASPs:

Haiti's AML/CFT Framework for Virtual Asset Service Providers

1. AML/CFT Legislation:

The primary AML/CFT legislation in Haiti, which would generally apply to VASPs operating within its jurisdiction, includes:

• Loi du 11 novembre 2013 relative à la Lutte Contre le Blanchiment d'Argent et le Financement du Terrorisme (Law of November 11, 2013, relating to the Fight Against Money Laundering and the Financing of Terrorism): This is the cornerstone of Haiti's AML/CFT framework. It defines money laundering and terrorist financing offenses, sets out reporting obligations for designated non-financial businesses and professions (DNFBPs) and financial institutions, and establishes the powers of the UCREF.
• Décret du 10 mars 2005 instituant l'Unité de Lutte Contre le Blanchiment d'Argent (Decree of March 10, 2005, instituting the Unit for the Fight Against Money Laundering): This decree established the UCREF as Haiti's Financial Intelligence Unit (FIU) and outlined its structure and functions.

2. Customer Due Diligence (CDD) Requirements:

VASPs would be expected to implement robust CDD measures similar to those for traditional financial institutions, based on a risk-based approach. This includes:

• Identification and Verification:
  • Obtaining and verifying the identity of natural persons (name, date of birth, address, nationality, official identification number – e.g., passport, national ID card).
  • Obtaining and verifying the identity of legal persons (name, legal form, address, proof of incorporation/existence, names of directors/senior management).
  • Using reliable, independent source documents, data, or information for verification.
• Beneficial Ownership (BO): Identifying and taking reasonable measures to verify the identity of the beneficial owner(s) of customers, including understanding the ownership and control structure of legal persons. This typically involves identifying individuals who own or control more than a certain percentage (e.g., 25%) of the entity, or who exercise control through other means.
• Purpose and Nature of Business Relationship: Understanding the purpose and intended nature of the business relationship or transaction.
• Ongoing Monitoring: Continuously monitoring the business relationship and transactions undertaken by customers to ensure they are consistent with the VASP's knowledge of the customer, their business, and risk profile, including the source of funds where necessary.
• Enhanced Due Diligence (EDD): For higher-risk customers or transactions (e.g., Politically Exposed Persons (PEPs), complex or unusually large transactions, customers from high-risk jurisdictions, or transactions involving privacy-enhancing virtual assets), VASPs must apply EDD measures, such as:
  • Obtaining additional information on the customer and BO.
  • Obtaining information on the source of funds or wealth.
  • Obtaining approval from senior management for establishing or continuing the business relationship.
  • Conducting enhanced ongoing monitoring.

3. Suspicious Transaction Reporting (STR):

VASPs would be obligated to report suspicious transactions to the UCREF. This includes:

• Obligation to Report: Reporting any transaction (or attempted transaction) where there are reasonable grounds to suspect that funds are the proceeds of a criminal activity or are related to terrorist financing, regardless of the amount.
• "No Tipping-Off": Prohibiting the VASP or its employees from disclosing to the customer or any third party that an STR is being or has been filed.
• Red Flags: Developing internal procedures to identify "red flags" specific to virtual assets that may indicate money laundering or terrorist financing (e.g., unusual transaction patterns, rapid transfers of large sums, use of mixers/tumblers, unexplained sources of funds, attempts to avoid CDD).

4. Record-Keeping Obligations:

VASPs must maintain records for a specified period to assist in investigations and analysis. This typically includes:

• Customer Identification Records: All records obtained through CDD, including copies of identification documents.
• Transaction Records: Details of all domestic and international transactions, including the amount, currency (both fiat and virtual asset type), date, method of payment, and the identities of the originator and beneficiary (including wallet addresses).
• Analysis and STRs: Records of any analysis undertaken concerning suspicious transactions and copies of all STRs filed.
• Retention Period: Records must generally be kept for a minimum of five (5) years after the business relationship ends or after the date of the transaction.

5. Which Authority Oversees Compliance:

• Unité Centrale de Renseignements Financiers (UCREF):
  • Role: Haiti's Financial Intelligence Unit (FIU). It is the central authority for receiving, analyzing, and disseminating suspicious transaction reports (STRs) and other relevant information to competent authorities (e.g., law enforcement) for the investigation and prosecution of money laundering and terrorist financing.
  • URL: https://ucref.gouv.ht/
• Banque de la République d'Haïti (BRH):
  • Role: The Central Bank of Haiti. While not explicitly stated for "VASPs" currently, the BRH is the prudential regulator and supervisor for traditional financial institutions. Should Haiti introduce specific regulation or licensing for VASPs, it is highly probable that the BRH would be designated as the primary supervisory authority for their AML/CFT compliance, or at least play a significant role in their oversight. The BRH has previously issued warnings regarding the risks of cryptocurrencies.
  • URL: https://www.brh.gouv.ht/

Important Considerations for VASPs:

• Lack of Specific Regulation: The absence of specific VASP regulations in Haiti means that VASPs should proactively align themselves with international best practices (e.g., FATF recommendations for VAs and VASPs) and interpret Haiti's existing AML/CFT laws broadly to cover their operations.
• Travel Rule: While not explicitly legislated for VAs in Haiti, FATF Recommendation 16 (the "Travel Rule") applies to VASPs. This means VASPs should gather and transmit originator and beneficiary information for virtual asset transfers above a certain threshold (e.g., $1,000/€1,000).
• Sanctions Compliance: VASPs must screen customers and transactions against national and international sanctions lists (e.g., UN Security Council sanctions).
• Internal Controls: VASPs should establish robust internal AML/CFT programs, including the appointment of a compliance officer, employee training, internal audit functions, and risk assessment procedures.

Disclaimer: Given the evolving nature of cryptocurrency regulations globally, and the current state of specific VASP legislation in Haiti, it is highly recommended that any VASP seeking to operate in or serve customers in Haiti consult with local legal counsel specializing in financial services and AML/CFT to ensure full compliance with all applicable laws and regulations, as well as any emerging guidance from the BRH or UCREF.