Bank of the Republic of Haiti
CIRCULAR
No. 99-4

TO BANKS

This circular determines certain preventive measures that banks must take to combat money laundering and terrorist financing.

1. Customer Due Diligence

Banks must pay particular attention to customer knowledge standards to preserve their reputation and the integrity of the banking and financial system. To avoid exposure to reputational risk, operational risk, and legal risk, banks must have appropriate policies, methods, and procedures, taking into account among other things the following:

a) clear conditions for accepting new clients; b) precise rules on the identification of clients and their representatives, and constant monitoring; c) constant monitoring of high-risk accounts; d) appropriate procedures and means for risk management; e) vigilance measures for clients.

Banks must have risk management procedures regarding the conditions under which a client may benefit from the business relationship before their identification is verified (operations not involving the physical presence of the client).

Banks must exercise constant vigilance and carefully examine transactions carried out by clients to ensure they are consistent with what they know about their clients, their business activities, their risk profile, and, where applicable, the source of their funds.

2. Customer Identification

In compliance with the provisions of the Decree of April 30, 2023, penalizing money laundering, terrorist financing, and the financing of the proliferation of weapons of mass destruction, banks are required to identify their permanent or occasional clients, their representatives, proxy holders, and beneficial owners. Customer identification takes place during:

1. the establishment of the business relationship;

2. occasional transactions exceeding the regulatory threshold or in the case of repeated distinct operations for an individual amount below the regulatory threshold, or when the lawful origin of funds is not certain, or if it involves a fund transfer at the national or international level;

3. transactions in the form of electronic transfers (fund transfers);

4. multiple cash transactions, both in gourdes and foreign currencies, when the total exceeds the established threshold and when they are carried out by and for the account of the same person within a day or with unusual frequency;

5. the existence of suspicion of money laundering;

6. the existence of suspicion of terrorist financing;

7. doubts regarding the accuracy or relevance of previously obtained customer identification data.

Before entering into a business relationship with a client, whether a natural or legal person or a legal structure, banks must collect and analyze the information necessary for customer knowledge as well as the intended object and nature of the business relationship. For legal persons or legal structures, banks must understand their ownership and control structure.

When clients do not act for their own account, banks are required to find out by any means the identity of the true beneficial owner. After verification, if doubt persists regarding the identity of the true beneficial owner, the transaction must be terminated, without prejudice to the obligation to file a suspicious activity report. Furthermore, a lawyer, notary, accountant, or securities broker acting as a financial intermediary cannot invoke professional secrecy to refuse to disclose the identity of the true beneficial owner, in accordance with Article 43 of the Decree of April 30, 2023.

During customer identification, a copy of all documents must be made, classified, and centralized by the bank. Formal checks must be performed regarding the signature, any anomalies in the photograph, and the physical appearance of the potential client.

If banks cannot comply with the provisions set out above, they cannot establish or maintain a business relationship, nor carry out an operation for the client. In this case, they determine whether it is appropriate to file a suspicious activity report with the Central Unit for Financial Intelligence (UCREF) or to draw up a confidential internal report in accordance with Article 46 of the Decree of April 30, 2023.

Banks are not required to repeatedly identify each client and verify their identity every time they carry out a transaction. They may rely on identification and verification measures already carried out, unless they have doubts regarding the accuracy of the previously obtained information.

2.1. Identification of Natural Persons

The identification of a natural person according to Article 36 of the Decree of April 30, 2023 implies "obtaining full first and last names, date and place of birth, and address of their main residence." Banks are required to obtain the following information in this regard:

a) legal surname and other names used (e.g., maiden name); b) date and place of birth; c) nationality; d) profession, public office, and/or employer name; e) address (the full address must be obtained; a post office box number is not sufficient); f) country of residence; g) telephone numbers, email.

Non-resident natural persons must be identified in the same manner as residents. Minor children must be represented by a parent who is a client of the financial institution; otherwise, documentary proof of the child's identity and their legal guardian's identity must be provided.

2.2. Identification of Legal Persons and Legal Structures

When the client is a legal person or a legal structure, identification covers "the corporate name, proof of its legal formation, the address of the registered office, the identity and powers of the directors and officers or their equivalents under foreign law," according to Article 38 of the Decree of April 30, 2023.

Banks are required to obtain the following information for the purpose of identifying legal persons:

a) address of the company's main headquarters and branches, if applicable (the full address must be obtained; a post office box number is not sufficient); b) telephone numbers, email, website; c) name(s) and first name(s) of shareholders, country of residence, category of shares held (registered or bearer), percentage of shares held (for joint-stock companies); d) name(s) and first name(s) of partners, founders, country of residence, percentage of partnership shares held (depending on the legal form of the legal person); e) name(s) and first name(s) of owners, members of the board of directors, officers (depending on the legal form of the legal person); f) name(s) and first name(s), profession, address of representatives and beneficial owners, telephone, email, if applicable.

3. Verification of Customer Identity

Banks are required to verify the identity of clients using documents, data, or information from reliable and independent sources.

Regarding the verification of information, Article 36 of the Decree of April 30, 2023 specifies that: "the verification of the identity of a natural person requires the presentation of one (1) original official document currently valid and bearing a photograph, of which a copy is taken. The verification of their address is carried out by the presentation of one (1) document capable of proving it or by any other means."

When the client is a legal person or a legal structure, verification covers "the corporate name, the address of the registered office, the identity and powers of the directors and officers or their equivalents under foreign law, the proof of its legal formation namely the original, or the copy or the certified true copy of any deed or extract from the commercial register attesting notably to its legal form," according to Article 38 of the Decree of April 30, 2023.

3.1. Identification Documents

The following items and documents must be requested during the opening of accounts, the issuance of payment cards, the rental of safe deposit boxes, the execution of significant cash transactions, i.e., for a total sum equal to or greater than the threshold established by the BRH or the equivalent in foreign currency, for an occasional high-amount transaction, for any transaction carried out under conditions of unusual or unjustified complexity, for any transaction that appears to have no economic justification or lawful object, at the time of executing transactions in the form of electronic transfers, for the custody of securities and other assets, or any other transactions.

3.1.1. Natural Persons

a) one (1) original official document currently valid and bearing a photograph (national identity card or passport or driver's license); b) one (1) document proving the address: electricity bill or water bill or tax notice or bank statement, etc.

3.1.2. Minor Children

a) birth certificate or archive extract; b) one (1) original official document currently valid and bearing a photograph (national identity card or driver's license or passport) identifying one of the parents and one (1) document proving the parent's address, or c) one (1) original official document currently valid and bearing a photograph (national identity card or driver's license or passport) of the legal guardian and one (1) document proving the guardian's address; d) judgment homologating the family council, if applicable.

3.1.3. Legal Persons

Civil Company

a) contract or convention creating the company duly registered with the Ministry of Commerce and Industry; b) copy of the tax identification card and patent certificate; c) one (1) document authorizing one or more partners to carry out financial transactions and operations; d) one (1) original official document currently valid and bearing a photograph (national identity card or passport or driver's license) identifying the representative partners and beneficial owners; e) one (1) document proving the address of the representative partners (electricity bill or water bill or tax notice or bank statement, etc.).

General Partnership and Limited Partnership

a) deed of incorporation of the company duly registered with the Ministry of Commerce and Industry; b) articles of association of the company duly registered with the Ministry of Commerce and Industry; c) copy of the tax identification card and patent certificate; d) one (1) document authorizing one or more partners to carry out financial transactions and operations; e) one (1) original official document currently valid and bearing a photograph (national identity card or passport or driver's license) identifying the representative partners and beneficial owners; f) one (1) document proving the address of the representative partners (electricity bill or water bill or tax notice or bank statement, etc.).

Joint-Stock Company

a) operating authorization issued by the Ministry of Commerce and Industry; b) articles of association of the company duly registered with the Ministry of Commerce and Industry; c) copy of the tax identification card and patent certificate; d) one (1) document from the board of directors authorizing one or more persons to carry out financial transactions and operations; e) one (1) original official document currently valid and bearing a photograph (national identity card or passport or driver's license) identifying the representatives and beneficial owners; f) one (1) document proving the address of the representatives (electricity bill or water bill or tax notice or bank statement, etc.).

Foreign joint-stock companies must provide all the above-mentioned documents. Copies of documents must be certified as true copies of the originals by authorized persons (notary or consulate or embassy, etc.) and translated into French, if applicable.

Non-Governmental Organization (NGO)

a) operating authorization issued by the Ministry of Planning and External Cooperation; b) statutes of the NGO; c) copy of the tax identification card and patent certificate; d) one (1) document from the board of members to persons authorized to carry out financial transactions and operations; e) one (1) original official document currently valid and bearing a photograph (national identity card or passport or driver's license) identifying the representatives and beneficial owners; f) one (1) document proving the address of the representatives (electricity bill or water bill or tax notice or bank statement, etc.).

Cooperatives (savings and credit, agricultural, transport, etc.)

a) operating authorization issued by the National Council of Cooperatives or by the BRH, if applicable; b) statutes of the cooperative duly registered with the National Council of Cooperatives; c) copy of the tax identification card; d) one (1) document from the board of directors to persons authorized to carry out financial transactions and operations; e) one (1) original official document currently valid and bearing a photograph (national identity card or passport or driver's license) identifying the representatives; f) one (1) document proving the address of the representatives (electricity bill or water bill or tax notice or bank statement, etc.).

Foundation

a) registration issued by the Municipality; b) statutes of the foundation; c) copy of the tax identification card; d) one (1) document from the board of directors to persons authorized to carry out financial transactions and operations; e) one (1) original official document currently valid and bearing a photograph (national identity card or passport or driver's license) identifying the representatives and beneficial owners; f) one (1) document proving the address of the representatives (electricity bill or water bill or tax notice or bank statement, etc.).

Other Commercial Enterprises

a) copies of the patent certificate, tax identification card, and professional identity card;

b) one (1) document from the owner(s) to persons authorized to carry out financial transactions and operations; c) one (1) original official document currently valid and bearing a photograph (national identity card or driver's license or passport) identifying the representatives and beneficial owners; d) one (1) document proving the address of the representatives (electricity bill or water bill or tax notice or bank statement, etc.).

Charitable Organizations, Clubs, Associations, Churches, and Political Parties

In the case of such entities, banks must verify the identity of at least two (2) signatories, in addition to the entity itself. The responsible persons to be identified must be those who control the assets totally or partially, i.e., members of the executive body or committee, the president, an administrator, the treasurer, and all authorized signatories.

Regarding political parties, copies of the following documents must be requested:

a) registration with the Ministry of Justice and Public Security; b) the deed of incorporation; c) identification documents of the official representative or those mandated by the Management Committee.

Retirement Funds

The trustee or any other manager in charge of bank relations (administrator, manager, authorized signatory) must be considered the responsible person, and their identity must be verified by the bank.

Others

For any other type of entity not mentioned in this circular, banks are required to take adequate measures to establish the identity of the client and beneficial owners and to accept clients only after this procedure.

Regarding non-banking financial institutions, banks must ensure they are licensed by the BRH (copy of BRH authorization or verification of the BRH website).

3.1.4. Companies in Formation

For companies in formation (companies, foundations, NGOs), copies of notarial documents of formation (deed of foundation, statutes, constituent assembly) and all documents proving the registration process of the new entity (bill from the National Press, correspondence, etc.) are acceptable. Banks ensure, within reasonable timeframes, to complete the account opening file and strive to verify the identity of the representatives of the company in formation.

3.2. Accounts Opened Remotely

When an account is opened electronically, the sending of all documents must be done by registered mail with acknowledgment of receipt within five (5) business days following the date of account opening. This acknowledgment must be signed in person by the account holder. Copies of identification documents must be certified as true copies of the originals by authorized persons (notary or consulate or embassy, etc.). When it is a legal person or a legal structure, all documents must be translated into French and notarized, if applicable.

Banks must therefore take all special and sufficient measures to prevent money laundering and terrorist financing when they maintain business relationships or execute operations with a client who is not physically present for identification, in accordance with Article 30 of the Decree of April 30, 2023.

4. Beneficial Owners

Banks are required to identify beneficial owners in accordance with the provisions of Articles 40 to 42 of the Decree of April 30, 2023.

Adequate measures must be taken for the verification of collected information, as well as for their update when it appears that they are no longer current.

If banks cannot obtain this information or their clients fail to communicate it or provide irrelevant or implausible information, they cannot establish or maintain a business relationship, nor carry out an operation for the client. They will determine, in this case, whether it is appropriate to inform the UCREF.

5. Politically Exposed Persons

Enhanced due diligence must be exercised regarding politically exposed persons (PEPs), who are defined by Article 6 of the Decree of April 30, 2023 as persons who exercise or have exercised important public functions in a foreign country or in Haiti or within or for the account of an international organization, as well as the members of the family of this person, or any other persons closely linked or associated with them.

Banks must have appropriate risk management systems in place to determine if the client or beneficial owner is a politically exposed person. Once the client is identified as a politically exposed person, the following must be done:

a) obtain authorization from senior management before establishing or continuing a business relationship with the client;