Circular No. 98 and Related Letters on International Money Transfers

Bank of the Republic of Haiti CIRCULAR No. 98

TO COMMERCIAL BANKS, TO SAVINGS AND HOUSING BANKS AND TO MONEY TRANSFER HOUSES

In the context of its efforts to maintain the efficiency, integrity, reliability of information and security of the payment system as well as to promote financial inclusion, the BRH has decided to initiate a reform aimed at:

• expanding the range of payment instruments and services;
• accelerating the dematerialization of currency and financial inclusion;
• promoting the decentralization and popularization of payment points;
• improving the operating and usage costs of liquidity as well as access to these means of payment;
• strengthening the interoperability of banking and payment infrastructures;
• implementing a more appropriate supervision and regulation regime; and
• increasing the efficiency and stability of payment services.

In accordance with the provisions of the law of August 17, 1979 creating the Bank of the Republic of Haiti, the decree of November 14, 1980 regulating banking activities and the decree of July 6, 1989 on money transfer houses, this circular determines the conditions for the execution of international fund transfers to and from Haiti.

1. Declaration of international transfers

Commercial banks, savings and housing banks and money transfer houses are required to communicate to the BRH every Monday, on paper, the number and total amount of transfers sent abroad and received from abroad, regardless of the form in which the beneficiary receives the transfer (cash or kind), in accordance with the declaration form in the annex. These institutions are also required to send monthly to the BRH the certified copy of the amounts declared to the regulators of the territories in which they carry out their fund transfer activities.

P.O. Box 1570, Port-au-Prince, Haiti. Telephone: 2299-1244. Fax 2299-1191

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In the event of non-compliance with this section, the institution concerned is subject to the following penalties:

- Reliability of information

At all times, the amounts declared in the form provided in the annex must be those appearing in the institution's books as well as the declarations to the aforementioned regulators. 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 books, without prejudice to the usage fees due by the institution.

In the event of recidivism, the BRH will apply sanctions that may go up to the withdrawal of the operating authorization.

- Delay in submitting reports

In the event of delay in submitting the form, the institutions concerned incur a penalty of ten thousand gourdes (HTG 10,000.00) per day of infraction. The penalty period extends from the day the form should have been transmitted to the BRH to the day it is received.

Beyond eight (8) days of delay, the amount of the penalty will be doubled. Beyond one (1) month of delay, the BRH may take sanctions that may go up to the withdrawal of the operating authorization.

- Payment of penalties

The BRH will send, by notice with acknowledgment of receipt, to the institutions concerned the amount of the penalties. The penalties must be settled by cashier's check payable to the Bank of the Republic of Haiti within a period of eight (8) days from the date of receipt of the notice.

- Inspection

Inspections may take place at any time in the context of the implementation of these provisions.

2. Use and usage fees of the BRH payment platform

Commercial banks, savings and housing banks and money transfer houses are required to use the BRH payment platform for the processing of all international fund transfers to and from Haiti (incoming and outgoing). They are also required to offer their customers the option of receiving transfers by universally accepted electronic payment instruments.

P.O. Box 1570, Port-au-Prince, Haiti. Telephone: 2299-1244. Fax 2299-1191

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The data exchange, execution, clearing and settlement mechanisms of the payment platform for the processing of international transfers to and from Haiti (incoming and outgoing) will be established by the BRH.

Test, certification, usage and inspection fees of 1.50 USD will be applied per transaction for payment services and access at various points throughout the country. These fees will be billed monthly and must be paid before the 10th of each month by cashier's check.

Furthermore, said fees will not apply to transfers made by banks for their own account. In other words, transfers for companies and individuals are therefore subject to these fees.

3. Interfaces with the BRH platform

The BRH will set by regulatory provisions the deadline for the implementation of interfaces with the payment platform.

This circular enters into force on June 1st, 2011.

Port-au-Prince, May 20, 2011

Charles Castel Governor

ANNEX – Declaration Form

P.O. Box 1570, Port-au-Prince, Haiti. Telephone: 2299-1244. Fax 2299-1191

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ANNEX

NAME OF THE INSTITUTION: _______________________________

For the period from _______________ to _______________

Cash Transfers

BRACKET	NUMBER OF TRANSFERS	AMOUNT PER BRACKET	FEE PER BRACKET
< 50
50 > 100
100 > 500
500 > 1,000
1,000 and more
TOTAL

In-kind Transfers

BRACKET	NUMBER OF TRANSFERS	AMOUNT PER BRACKET	FEE PER BRACKET
< 50
50 > 100
100 > 500
500 > 1,000
1,000 and more
TOTAL

Date: _________________________

Name: _________________________ Authorized Signature: ____________ Title/Function: _______________

Name: _________________________ Authorized Signature: ____________ Title/Function: _______________

P.O. Box 1570, Port-au-Prince, Haiti. Telephone: 2299-1244. Fax 2299-1191

Bank of the Republic of Haiti
The Governor

# CIRCULAR LETTER # 07

## CIRCULAR LETTER
TO COMMERCIAL BANKS,
TO SAVINGS AND HOUSING BANKS AND
TO MONEY TRANSFER HOUSES

Following Circular 98 on the conditions for the execution of international transfers to and from Haiti (incoming and outgoing) and the meetings of Friday, May 27, 2011 and Tuesday, May 31, 2011, the Bank of the Republic of Haiti (BRH) has the honor to confirm to commercial banks, savings and housing banks and money transfer houses the following:

### 1. Use and usage fees of the BRH payment platform

The test, certification, usage and inspection fees of USD 1.50 must be collected in accordance with the rules currently in use in the institutions covered by this letter. The fees will therefore be collected at the source whether on transfers sent abroad or on transfers received (cash or kind) from abroad.

These fees must not be taken into account in calculations related to the turnover tax (TCA).

### 2. Date of entry into force

As of **June 15, 2011**, Circular 98 applies to all international transfers (incoming and outgoing, cash or kind) carried out in the following geographical areas:

1. United States of North America;
2. Canada;
3. Turks and Caicos Islands;
4. Bahamas.

As of **July 1st, 2011**, commercial banks, savings and housing banks and money transfer houses are required to declare all international transfers to and from Haiti (incoming and outgoing) regardless of the form in which the beneficiary receives the transfer (cash or kind).

Port-au-Prince, May 31, 2011

Charles Castel

P.O. BOX 1570, Port-au-Prince, Haiti. Telephone: 2940-2009/ 2998-2024/ 2998-2025

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Bank of the Republic of Haiti
The Governor

# CIRCULAR LETTER # 08

TO COMMERCIAL BANKS,
TO SAVINGS AND HOUSING BANKS AND
TO MONEY TRANSFER HOUSES

The Bank of the Republic of Haiti (BRH) has the honor to advise commercial banks, savings and housing banks and money transfer houses that as of **June 15, 2011**, they may pay, in gourdes at the market rate, transfers received from abroad, whenever this rate is accepted by the beneficiary. In the event that the beneficiary demands payment in foreign currency, the paying institution must satisfy this requirement. Daily exchange rates must be displayed in all money transfer payment locations.

Port-au-Prince, June 9, 2011

Charles Castel

P.O. BOX 1570, Port-au-Prince, Haiti. Telephone: 2940-2009/ 2998-2024/ 2998-2025
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