Haiti Country Summary

FATF Status

Haiti is on the FATF List of Countries that have been identified as having strategic AML deficiencies

Compliance with FATF Recommendations

The last Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Haiti was undertaken in 2019. According to that Evaluation, Haiti was deemed Compliant for 0 and Largely Compliant for 2 of the FATF 40 Recommendations. It was also deemed Highly Effective for 0 and Substantially Effective for 0 with regard to the 11 areas of Effectiveness of its AML/CFT Regime.

Haiti faces a severe crisis of corruption and crime, characterized by widespread bribery and embezzlement that significantly hampers business operations and public trust in institutions. The country is plagued by armed gangs that exert control over various regions, while the judicial system remains ineffective due to political interference and resource shortages, allowing criminal networks to thrive amidst ongoing political turmoil and economic instability.

Haiti's economy, situated on the western part of Hispaniola, is characterized by a blend of urbanization and significant rural population, with over 6.8 million Haitians living in rural areas. Although the country possesses advantages such as fertile land and a young workforce, the investment climate is severely hampered by rampant corruption, inadequate infrastructure, political instability, and escalating gang violence, which has led to a humanitarian crisis and a brain drain of skilled professionals. The macroeconomic outlook remains bleak, with a negative GDP growth of 1.9% in 2023, soaring inflation rates of 27.3%, and a decline in foreign direct investment, necessitating urgent reforms to stabilize the business environment and attract investors.