Haiti -- Licensing Requirements Regulatory Overview

**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.

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.

**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).

**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.

**Unité Centrale de Renseignements Financiers (UCREF) - Financial Intelligence Unit:**

**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.

**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.

**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.

**Anti-Money Laundering (AML) and Counter-Financing of Terrorism (CFT) Obligations:** This is the most significant area where virtual asset businesses operating in Haiti, or serving Haitian customers, must be compliant. Haiti is a member of the Caribbean Financial Action Task Force (CFATF), which is an associate member of the Financial Action Task Force (FATF). FATF Recommendations explicitly require countries to regulate and supervise VASPs for AML/CFT purposes.

Even without a specific VASP licensing law, any entity facilitating financial transactions, including those involving virtual assets, is generally expected to adhere to Haiti's existing AML/CFT legislation. This implies implementing KYC (Know Your Customer) procedures, transaction monitoring, suspicious activity reporting (SARs), and other AML/CFT controls.

The **Unité Centrale de Renseignements Financiers (UCREF)** is Haiti's Financial Intelligence Unit (FIU) and is responsible for receiving and analyzing SARs and combating money laundering and terrorist financing. VASPs, like traditional financial institutions, would be expected to report to UCREF.

**Exchanges, Custody Providers, Payment Processors (Cryptocurrency-Specific):** No specific license required *solely* for crypto activities.

**Hybrid Businesses:** If a business combines crypto services with traditional financial services (e.g., fiat currency exchange, remittances in fiat, deposit-taking), it would likely require appropriate licenses from the BRH for those traditional services.

**Neither specifically exists for VASPs.** Haiti has not yet implemented the FATF recommendation for countries to license or register VASPs.

**Key Requirements (Hypothetical/Applied from General AML):**

**Capital Requirements:** Not applicable for crypto-only services without a dedicated licensing regime. However, any entity requiring a BRH license for traditional financial services would have specific capital requirements.

**AML/KYC Requirements:** **CRUCIAL.** Even without specific crypto regulations, it is highly advisable and often implicitly required under Haiti's general AML/CFT law for any entity dealing with financial transactions to:

Implement robust Know Your Customer (KYC) procedures (identity verification, customer due diligence).

Monitor transactions for suspicious activities.

Report suspicious transactions to UCREF.

Have internal AML policies, controls, and a designated compliance officer.

**Local Presence:** Generally, any financial services business operating in Haiti is expected to have a local legal entity and physical presence. This would likely be a requirement if a crypto business were to seek a traditional financial license or if specific crypto regulations were introduced.

Fit and proper assessment of directors and shareholders.

Detailed operational and risk management frameworks.

**Banque de la République d'Haïti (BRH) - Central Bank:**

The primary financial regulator. While they haven't issued specific crypto regulations, any future framework would likely come from them.

*Note:* You'll find general banking and financial sector regulations here, but nothing specific to crypto.

**Loi du 20 février 2013 portant sur la lutte contre le blanchiment d'avoirs et le financement du terrorisme (Law of February 20, 2013, on the Fight Against Money Laundering and Terrorist Financing):**

This is Haiti's primary AML/CFT law. It is crucial for any entity dealing with financial transactions. While it doesn't explicitly mention "virtual assets" (being from 2013), its principles and obligations extend to activities that could facilitate money laundering or terrorist financing.

*Finding a direct official government link can be challenging for Haitian laws, but the law's existence and content are well-documented by legal firms and international bodies.*

Responsible for receiving and analyzing suspicious transaction reports (STRs).

*Note:* Any VASP operating in Haiti should understand its obligations to UCREF under the general AML/CFT framework.

**Caribbean Financial Action Task Force (CFATF):**

Haiti is a member, and CFATF reports often include recommendations regarding VASP regulation.

*Note:* Searching for "Haiti" on the CFATF website might yield mutual evaluation reports that highlight the country's AML/CFT framework and recommendations, including potential future VASP regulation.

**Comply fully with Haiti's existing AML/CFT laws** and be prepared for potential future VASP-specific regulations.

**Monitor developments** from the BRH and UCREF closely.

**Seek independent legal counsel** in Haiti to understand the application of general financial laws to their specific business model and to ensure compliance with current and evolving legal obligations.

Be aware that international pressure (FATF/CFATF) will likely lead to the introduction of VASP-specific licensing or registration requirements in the future.

**Investment of Money:** An individual commits capital.

**Common Enterprise:** The capital is pooled or contributes to a shared venture.

**Expectation of Profit:** The investor anticipates financial gain.

**Solely from the Efforts of Others:** The profit is expected to derive primarily from the managerial or entrepreneurial efforts of the promoter or a third party, rather than the investor's own active participation.

**Investment Tokens/Security Tokens:** Tokens that represent an ownership interest (equity), a debt instrument, a right to profit-sharing, or a claim on assets/revenue of an enterprise would likely be viewed as securities.

**Tokens with Investment Promises:** Any token sold with explicit or implicit promises of future financial returns, capital appreciation, or dividends, particularly if those returns are contingent on the efforts of the issuer or a third party.

**Initial Coin Offerings (ICOs) or Token Generation Events (TGEs):** If conducted to raise capital for a project in exchange for tokens that grant investment-like rights or promises, these would be the most vulnerable to being deemed security offerings.

**True Utility Tokens:** Tokens that primarily grant access to a specific product or service within a network, without any explicit or implicit promise of investment returns.

**Pure Payment Tokens/Cryptocurrencies:** Decentralized cryptocurrencies like Bitcoin, primarily used as a medium of exchange or store of value, are generally not considered securities.

**Issuing Warnings:** The BRH has issued public advisories warning the population about the risks associated with cryptocurrencies, including volatility, lack of regulation, potential for fraud, and their non-recognition as legal tender.

**Anti-Money Laundering (AML) / Combating the Financing of Terrorism (CFT):** Any enforcement actions related to cryptocurrency would more likely fall under broader financial crime statutes, particularly if digital assets are suspected of being used for money laundering, terrorist financing, or other illicit activities, rather than for violating securities laws.

**Consumer Protection:** Actions might also be taken under general consumer protection laws if there's evidence of outright fraud or misrepresentation.

**Banque de la République d'Haïti (BRH) Official Website:**

**Relevance:** This is the central bank of Haiti and the primary financial regulator. While you won't find specific crypto securities legislation here, this is where official announcements, advisories, and general financial regulations are published. You may find general warnings or statements regarding digital assets under their "Publications" or "Communiqués" sections. Searches on their site for "cryptomonnaie" or "monnaie numérique" typically yield warnings rather than regulatory frameworks.

**Approach:** **Partial / Largely Unregulated with Cautious Warnings.** While there isn't an outright ban, there's no specific framework for licensing, operating, or supervising virtual asset service providers (VASPs) or crypto activities. The existing anti-money laundering (AML) and countering the financing of terrorism (CFT) framework is the primary, albeit indirect, mechanism that *could* be applied to financial institutions dealing with virtual assets. The central bank has issued warnings regarding the risks.

**Banque de la République d'Haïti (BRH)** - The Central Bank of Haiti.

**Role:** While not a crypto regulator, the BRH is responsible for the overall stability of the financial system, monetary policy, and oversight of traditional financial institutions. It has issued warnings about the risks associated with cryptocurrencies. It would be the primary body to initiate any future comprehensive regulation.

**Role:** The UCRF is responsible for receiving, analyzing, and disseminating suspicious transaction reports (STRs) related to money laundering and terrorist financing. While the 2005 AML/CFT law doesn't explicitly name "virtual assets," the UCRF would interpret its mandate to cover any financial transactions suspected of illicit activity, including those involving crypto if they flow through regulated entities or trigger other reporting obligations. Haiti, as a member of the Caribbean Financial Action Task Force (CFATF), is under pressure to align with FATF Recommendations, which *do* cover virtual assets.

**URL:** Information about UCRF can often be found on the BRH website or through international bodies like the Egmont Group, but a direct, standalone UCRF website is not easily accessible. Its legal basis stems from the AML/CFT law (see below).

**Loi du 11 mai 2005 relative au blanchiment d'avoirs et au financement du terrorisme (Law of May 11, 2005, on Money Laundering and Terrorist Financing)**

**Relevance to Crypto:** This law establishes the general AML/CFT framework in Haiti. While it predates the widespread use of cryptocurrencies and does not explicitly mention them, it forms the basis for the UCRF's operations and imposes obligations on traditional financial institutions. If virtual assets are converted to fiat through a regulated financial institution (e.g., banks, money transfer operators), these entities would be subject to the law's reporting requirements.

*Reference to CFATF Reports (which discuss the law):* CFATF Website - Haiti Reports (You'll need to navigate to the specific reports, such as the 2018 Mutual Evaluation Report, to see detailed discussions of Haiti's AML/CFT framework).

Crypto trading is **not explicitly prohibited** for individuals in Haiti.

However, it operates in a **regulatory vacuum**, meaning there are no specific consumer protections, licensing requirements for trading platforms, or clear legal recourse in case of fraud or loss of funds specific to virtual assets.

The BRH has issued general warnings about the risks associated with cryptocurrencies, including their volatility, lack of underlying assets, and potential for use in illicit activities.

There is **no specific licensing or regulatory framework** for cryptocurrency exchanges (Virtual Asset Service Providers - VASPs) operating within Haiti.

Foreign-based cryptocurrency exchanges are accessible to Haitian residents, but they operate outside Haitian jurisdiction, meaning local authorities have no oversight or control over their operations or the funds held by their users.

Any entity attempting to operate a *local* crypto exchange would likely fall under general business registration laws but would not be subject to financial regulations specifically tailored to virtual assets, leading to a lack of oversight regarding AML/CFT specific to crypto, capital requirements, or consumer protection.