Remote VASP serving residents 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).

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.

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.

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.

Not defined, as the regulatory framework is not in place. The FATF Travel Rule typically applies to transactions above a de minimis threshold (e.g., USD/EUR 1,000).

Which VASPs are Covered:

Not legally defined or explicitly covered under existing Haitian law. While the FATF definition of a VASP would conceptually apply (any natural or legal person who, as a business, conducts one or more of the following activities or operations for or on behalf of another natural or legal person: exchange between VAs and fiat currencies; exchange between one or more forms of VAs; transfer of VAs; safekeeping and/or administration of VAs or instruments enabling control over VAs; and participation in and provision of financial services related to an issuer's offer and/or sale of a VA), these entities are not yet subject to specific AML/CFT obligations in Haiti.

Technical Implementation Requirements:

Not specified or required, due to the absence of a legal framework.

Penalties for Non-Compliance:

Not specifically applicable for Travel Rule non-compliance, as the rule is not legally binding in Haiti for VASPs.

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.

Loi du 11 novembre 2016 relative à la lutte contre le blanchiment d'argent et le financement du terrorisme (AML/CFT Law of Haiti): This is Haiti's main AML/CFT legislation, but as noted, it does not explicitly cover 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.

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

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.

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.

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

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:

A very low level of formal crypto business activity that would trigger regulatory scrutiny.

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.