Crypto-funded debit card 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.

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.

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 Specific Classification: There is no specific legal classification for stablecoins under Haitian law. They are not formally categorized as e-money, payment tokens, or securities within a regulatory framework.

Implicitly Unregulated: Based on the BRH's general stance on cryptocurrencies, stablecoins are effectively treated as unregulated digital assets, existing outside the purview of the existing financial services legislation. If they were to be regulated, given their intended use, they would likely fall under electronic money or payment services, but this has not occurred.

None: As stablecoins are not regulated, there are no prescribed reserve requirements for issuers in Haiti. Any reserves held by an issuer would be based on their internal policies and the specific stablecoin's design, without legal enforcement or oversight by the BRH.

None: There is no specific licensing regime for stablecoin issuers in Haiti. Any entity issuing stablecoins would be operating outside the formal financial licensing framework. Traditional financial institutions (banks, payment service providers) are licensed under the Loi du 20 mars 1996 sur les institutions financières (Law of March 20, 1996 on Financial Institutions), but this law does not encompass crypto asset issuance.

No Legal Guarantee: Without specific stablecoin regulation, there are no legally guaranteed redemption rights under Haitian law. Redemption terms would solely depend on the agreement between the user and the stablecoin issuer, as outlined in the issuer's terms of service, without recourse to Haitian financial regulators for enforcement.

Regulator Name: Banque de la République d'Haïti (BRH - Central Bank of Haiti)

Date: November 2021

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.

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

Central Bank Stance: The BRH maintains a cautious stance, primarily focusing on warning the public about risks and clarifying that cryptocurrencies are not legal tender.

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

General Principle: If cryptocurrencies are considered movable property or assets, any profit derived from their sale could potentially be subject to income tax if it's deemed a gain on movable property or part of a taxable activity.

Individuals: Haiti has a progressive income tax scale, with rates generally ranging from 0% to 30%.

Businesses (Corporate Income Tax): The corporate income tax rate in Haiti is generally around 30%.

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 natural persons (name, date of birth, address, nationality, official identification number – e.g., passport, national ID card).

Purpose and Nature of Business Relationship: Understanding the purpose and intended nature of the business relationship or transaction.

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.

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.

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.

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.

Banque de la République d'Haïti (BRH) Communications: The primary source of information on Haiti's stance comes from the BRH. While a single, easily discoverable "stablecoin regulation" document doesn't exist, the BRH has issued general warnings regarding cryptocurrencies. These warnings typically highlight the risks, the lack of legal tender status, and the absence of regulatory oversight.

Loi du 20 mars 1996 sur les institutions financières: This law governs traditional financial institutions and services in Haiti. As stablecoins are not recognized within this framework, it does not apply directly to their regulation but defines the existing, regulated financial landscape.

Banque de la République d'Haïti (BRH): The BRH has previously issued warnings regarding cryptocurrencies, emphasizing that they are not legal tender in Haiti and cautioning against their use due to risks such as volatility, lack of regulatory oversight, and potential for illicit activities. While not explicitly illegal, they are not officially recognized or regulated as financial instruments or currency.

Entity Targeted: The general public, financial institutions operating in Haiti. (This was a general warning, not targeting a specific crypto company or individual). Violation Type: Not a violation, but rather a warning against the inherent risks associated with using unregulated virtual assets (cryptocurrencies) and a clarification of their legal status. The BRH emphasized that cryptocurrencies are not legal tender in Haiti and are not subject to the country's financial regulations. Penalty Amount: None. This was a public advisory/warning.

Haiti: Central Bank Warns Public on Crypto Use (Cryptopotato, reporting on the BRH communiqué, November 2021)

A regulatory environment that has not yet developed the tools or mandate for proactive enforcement against crypto service providers.

Focus on broader financial stability and anti-money laundering (AML) efforts, rather than specific crypto regulations.