Bank of the Republic of Haiti

Circular 114-3

TO BANKS AND MONEY TRANSFER HOUSES

Pursuant to Articles 2 and 3 of the Decree of June 5, 2020, modifying certain provisions of the Decree of July 6, 1989, on money transfer houses, Article 161 of the Law of May 14, 2012, on banks and other financial institutions, and Article 45 of the Decree of November 25, 2020, on foreign exchange intermediaries, this circular defines the standards relating to international unremunerated fund transfers.

1. Fund Transfer Procedures

1.1. Received Transfers

Banks and money transfer houses are required to pay international transfers in gourdes at all their service points (branches, agencies, offices, kiosks) or on a payment instrument. Under no circumstances can the rate applied to pay transfers be lower than the reference rate calculated by the BRH, nor can it exceed the average between the reference rate and the average acquisition rate.

Fund transfers may also be made to savings accounts denominated in US dollars held by beneficiaries. However, money transfer houses cannot effect transfers to accounts for any amount equal to or greater than one thousand US dollars (USD 1,000.00). In such cases, the sender must effect a wire transfer through their banking institution.

When paying a transfer, banks and money transfer houses must identify their regular or occasional client, in accordance with the provisions of applicable laws and regulations, and provide the client with a receipt of the transaction. The receipt must contain, among other things, the amount and currency in which the transfer was paid, the exchange rate of the transaction, the name of the bank or money transfer house, and the address of the service point that performed the operation.

Money transfer houses are required to visibly display the rate applied by their financial institution in their premises. They must also ensure that this rate is displayed in a visible location at all service points managed by sub-agents.

1.2. Sent Transfers

Sent transfers must be carried out in accordance with the internal procedures of banks and money transfer houses, and applicable laws and regulations.

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1.3. Resource Management

Transfer operators operating abroad are required to remit to their authorized agents in Haiti (banks and money transfer houses) or their subsidiaries in Haiti the funds received from senders in US dollars.

The dollar counterpart of transfers paid in gourdes is distributed as follows:

a) Zero percent (0%) to the BRH;

b) Seventy percent (70%), without cost surcharge, to one or more financial institutions of the choice of the bank or money transfer house, whose gourde accounts will be credited at the rate applied by the financial institution for the payment of transfers;

c) Thirty percent (30%) to the authorized agent (banks and money transfer houses).

The BRH, based on its needs, reserves the right to acquire from banks, money transfer houses, and any other authorized foreign exchange intermediary an amount not exceeding twenty-five cents (USD 0.25) on every dollar purchased, from transfers or other sources, by these financial institutions. The BRH will notify the concerned financial institutions by notice.

In addition, banks may not sell to their affiliates (natural or legal persons) more than 10%, including their internal needs, of funds derived from the remittance of the dollar counterpart of transfers paid in gourdes by money transfer houses.

1.4 Reimbursement Procedures to Sub-agents

In addition to commissions and other fees agreed upon between the parties, banks and money transfer houses must reimburse their sub-agents for the amount of transfers paid according to the following modalities:

• Seventy percent (70%) in gourdes, and
• Thirty percent (30%) in US dollars.

Sub-agents are required to negotiate the 30% received in US dollars exclusively with a foreign exchange intermediary (bank, exchange office, and any other entity designated by the BRH).

2. Principles Related to Fund Transfer Services

Banks and money transfer houses must sign representation contracts with sub-agents, allowing them to perform, on their behalf and under their full responsibility, the sending of funds received from clients or the payment of fund transfers.

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These contracts must specify, among other things, the operations that sub-agents can perform on behalf of the bank or money transfer house, the responsibilities of the parties, and the operational modalities related to the payment of transfers and the sending of funds.

When concluding representation contracts for transfer services with sub-agents, banks and money transfer houses must:

a) ensure their honorability and integrity;

b) establish their risk profile taking into account, among other things, the sector of activity, their geographic location, and their monthly turnover;

c) monitor daily the transfer operations they perform in relation to their risk profile;

d) assume full responsibility for their actions or omissions, as long as they relate to the transfer services provided by said sub-agent;

e) ensure compliance with rules related to the fight against money laundering and terrorist financing;

f) contribute to their training, particularly in matters of combating money laundering and terrorist financing.

Commercial enterprises operating in the gambling sector, notably lotteries, bingo halls, and casinos, may in no case be sub-agents of any financial institution.

Sub-agents must clearly display at their commercial premises their status and the name of the financial institution or institutions for which they operate. They must also visibly and legibly display the tariff conditions applied to clients at their counters.

Banks and money transfer houses are responsible, vis-à-vis clients, for their network of sub-agents, notwithstanding any contrary contractual provision.

3. Control of Sub-agents

Banks and money transfer houses must establish for each sub-agent the daily payment capacity for transfers. They must ensure that the amount of transactions carried out by said sub-agents corresponds to their payment capacity.

Banks and money transfer houses must declare to the BRH the total amount of transfers paid by sub-agents.

Banks and money transfer houses are required to enforce this circular through their sub-agents. In the event of non-compliance by a sub-agent with the provisions of this circular, they must send to the BRH quarterly a list of offenders and the measures taken against them. In the event of contract termination, the BRH must be informed, along with the reasons, no later than three (3) business days from the date the decision takes effect. The BRH will notify the banks and money transfer houses.

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No sub-agent whose contract has been terminated for violation of the provisions of this circular may act as a representative of a financial institution for fund transfer services.

4. Reporting

Banks and money transfer houses are required to complete and send to the BRH, electronically according to the predefined format via the BSA software or via the use of Application Programming Interfaces (API), a quarterly report containing the list of all their service points including the following information regarding representatives: name, tax identification number (NIF), address or geographic location, monthly transfer payment capacity, monthly paid transfer volume. This report must be transmitted to the BRH no later than fifteen (15) days after the end of the quarter.

5. Sanctions

In the event of non-compliance with the obligations defined in this circular, the concerned institution is subject to the following penalties:

a) Reliability of Information

At all times, the amounts declared in the form provided in the annex must be those appearing in the accounting books of the institution. If the amounts do not match, the BRH may, after an investigation into the circumstances and nature of the violation, impose a penalty of 50% of the difference between the declared amounts and the amounts appearing in the accounting books.

b) Late Submission of Report

Failure to provide, within the required timeframe, the report provided for in Section 4 of this circular, the concerned institutions incur a penalty of fifty thousand gourdes (HTG 50,000.00) per day of infraction. The penalty period extends from the day the report should have been transmitted to the BRH to the day it is received by the BRH.

c) Others

For any other infraction noted, the BRH will demand the immediate cessation of the incriminated practice, take administrative sanctions, notably a warning letter against the faulty institution, and may apply a fine of two hundred fifty thousand gourdes (HTG 250,000.00) for each fact noted.

6. Modification of Thresholds

The thresholds and/or percentages indicated in this circular, with the exception of administrative sanctions, may be modified by notice by the BRH, depending on the market situation.

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7. Repeal and Entry into Force

This circular repeals Circular 114-2 of September 18, 2020. It enters into force on September 5, 2022.

Port-au-Prince, August 23, 2022.

Jean Baden Dubois
Governor

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ANNEX

CIRCULAR 114-3

SUB-AGENT IDENTIFICATION AND DECLARATION FORM FOR PAYMENT TRANSACTIONS

Quarterly Report

Institution Name: _________________________
Period: From ________ To ________

Name of Sub-Agents	Representative's Tax ID (NIF)*	Location	Monthly Payment Capacity (in HTG)	Payment Volume Month 1	Payment Volume Month 2	Payment Volume Month 3	Average Monthly Volume of the Quarter

*The one who signed the contract with the Authorized Agent