Anti-money laundering and counter-terrorist financing measures Republic of Haiti Mutual Evaluation Report July 2019 Mutual Evaluation Report- Republic of Haiti 1 CONTENTS EXECUTIVE SUMMARY .......................................................................................................................... 4 Key Findings ............................................................................................................................................. 4 Risks and General Situation ...................................................................................................................... 7 Overall Level of Effectiveness and Technical Compliance ...................................................................... 8 Priority Actions ....................................................................................................................................... 14 Effectiveness & Technical Compliance Ratings ..................................................................................... 16 MUTUAL EVALUATION REPORT ........................................................................................................ 18 Preface ..................................................................................................................................................... 18 CHAPTER 1. ML/TF RISKS AND CONTEXT ........................................................................................ 20 ML/TF Risks and Scoping of Higher-Risk Issues ................................................................................... 21 Materiality ............................................................................................................................................... 27 Structural Elements ................................................................................................................................. 29 Background and other Contextual Factors .............................................................................................. 29 CHAPTER 2. NATIONAL AML/CFT POLICIES AND COORDINATION ...................................... 38 Key Findings and Recommended Actions .............................................................................................. 38 Immediate Outcome 1 (Risk, Policy and Coordination) ......................................................................... 39 CHAPTER 3. LEGAL SYSTEM AND OPERATIONAL ISSUES ...................................................... 46 Key Findings and Recommended Actions .............................................................................................. 46 Immediate Outcome 6 (Financial intelligence ML/TF) .......................................................................... 52 Immediate Outcome 7 (ML investigation and prosecution) .................................................................... 68 Immediate Outcome 8 (Confiscation) ..................................................................................................... 84 CHAPTER 4. TERRORIST FINANCING AND FINANCING OF PROLIFERATION ..................... 94 Key Findings and Recommended Actions .............................................................................................. 94 Immediate Outcome 9 (TF investigation and prosecution) ..................................................................... 98 Immediate Outcome 10 (TF preventive measures and financial sanctions) .......................................... 101 Immediate Outcome 11 (PF financial sanctions) .................................................................................. 105 CHAPTER 5. PREVENTIVE MEASURES ........................................................................................ 107 Key Findings and Recommended Actions ............................................................................................ 107 Immediate Outcome 4 (Preventive Measures) ...................................................................................... 109 FIs .......................................................................................................................................................... 109 CHAPTER 6. SUPERVISION ............................................................................................................. 120 Key Findings and Recommended Actions ............................................................................................ 120 Immediate Outcome 3 (Supervision)..................................................................................................... 122 CHAPTER 7. LEGAL PERSONS AND ARRANGEMENTS ............................................................ 133 Key Findings and Recommended Actions ............................................................................................ 133 Immediate Outcome 5 (Legal Persons and Arrangements) ................................................................... 135 CHAPTER 8. INTERNATIONAL COOPERATION ......................................................................... 142 2 Mutual Evaluation Report- Republic of Haiti Key Findings and Recommended Actions ............................................................................................ 142 Immediate Outcome 2 (International Cooperation)............................................................................... 143 TECHNICAL COMPLIANCE ANNEX .................................................................................................. 149 Recommendation 1 – Assessing Risks and applying a Risk-Based Approach ..................................... 149 Recommendation 2 – National Cooperation and Coordination ............................................................. 151 Recommendation 3 – Money laundering offence ................................................................................. 151 Recommendation–4 - Confiscation and provisional measures .............................................................. 153 Recommendation–5 - Terrorist financing offence................................................................................. 155 Recommendation 6 - Targeted financial sanctions related to terrorism and terrorist financing ............ 157 Recommendation 7 - Targeted financial sanctions related to Proliferation .......................................... 160 Recommendation 8 – Non-profit organisations..................................................................................... 160 Recommendation 9 – Financial institution secrecy laws....................................................................... 162 Recommendation 10 – Customer due diligence .................................................................................... 163 Recommendation 11 – Record-keeping ................................................................................................ 167 Recommendation 12 – Politically exposed persons .............................................................................. 169 Recommendation 13 – Correspondent banking .................................................................................... 170 Recommendation 14 – Money or value transfer services ...................................................................... 171 Recommendation 15 – New technologies ............................................................................................. 173 Recommendation 16 – Wire transfers ................................................................................................... 173 Recommendation 17 – Reliance on third parties ................................................................................... 175 Recommendation 18 – Internal controls and foreign branches and subsidiaries ................................... 176 Recommendation 19 – Higher-risk countries ........................................................................................ 177 Recommendation 20 – Reporting of suspicious transaction ................................................................. 178 Recommendation 21 – Tipping-off and confidentiality ........................................................................ 179 Recommendation 22 – DNFBPs: Customer due diligence ................................................................... 180 Recommendation 23 – DNFBPs: Other measures ................................................................................ 181 Recommendation 24 – Transparency and beneficial ownership of legal persons ................................. 182 Recommendation 25 – Transparency and beneficial ownership of legal arrangements........................ 185 Recommendation 26 – Regulation and supervision of financial institutions ........................................ 186 Recommendation 27 – Powers of supervisors ....................................................................................... 187 Recommendation 28 – Regulation and supervision of DNFBPs .......................................................... 189 Recommendation 29 - Financial intelligence units ............................................................................... 189 Recommendation 30 – Responsibilities of law enforcement and investigative authorities .................. 192 Recommendation 31 - Powers of law enforcement and investigative authorities ................................. 194 Recommendation 32 – Cash Couriers ................................................................................................... 195 Recommendation 33 – Statistics ..........................................................................................................