Centralized exchange in Haiti

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.

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).

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:

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).

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:

Banque de la République d'Haïti (BRH):

No. Haiti has not yet adopted a comprehensive legal and regulatory framework specifically governing Virtual Assets (VAs) and Virtual Asset Service Providers (VASPs), including the FATF Travel Rule. The existing Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) laws do not explicitly cover VASPs.

Evidence fact ht.travel-rule.cfatf-4th-round-enhanced not found (may have been renamed).

Not applicable, as the framework for VAs/VASPs, including the Travel Rule, has not been adopted.

Haiti's general AML/CFT law, the Loi du 11 novembre 2016 (relative à la lutte contre le blanchiment d'argent et le financement du terrorisme), applies to traditional financial institutions and designated non-financial businesses and professions (DNFBPs). Penalties under this law would apply to those entities for non-compliance with their respective obligations, but not currently to unregulated VASPs.

CFATF 4th Round Enhanced Follow-Up Report & Technical Compliance Re-Rating of Haiti (2023): This is the most authoritative public source on Haiti's compliance with FATF Recommendations, including its status regarding virtual assets.

Outcome: The communiqué served to officially inform the public and financial sector that cryptocurrencies are not recognized as legal tender, are not regulated by the BRH, and their use carries significant risks (volatility, cyber-security, money laundering, and terrorist financing). It effectively discourages their use within the formal financial system and signals that anyone engaging with them does so at their own risk. It sets a cautious tone for the country's approach to digital assets.

Date: November 2021

Absence of Specific Enforcement: The lack of specific enforcement actions against crypto entities suggests either:

Limited Framework: Haiti does not have a comprehensive legal or regulatory framework specifically for cryptocurrencies.