The Pre-Drafted Letter to FinCEN
Subject: Urgent Request for Enhanced Oversight and Compliance Enforcement for American Banks in Haiti
Dear Andrea Gacki, Director of Financial Crimes Enforcement Network,
I am writing to you as a concerned American citizen. While Haiti ranks a dismal 172nd out of 180 countries on Transparency International's 2023 Corruption Perceptions Index, raising broader concerns about corruption, my primary concern is ensuring American banks adhere to strict AML and ATF regulations.
Despite the critical role American banking institutions play, no fines or penalties have been reported concerning their potential non-compliance with international anti-money laundering (AML) and anti-terrorism financing (ATF) laws. This lack of enforcement is alarming, especially when compared to other FinCEN alerts such as:
THE DIASPORA STAKEHOLDERS
The Haitian diaspora's remittance to Haiti, which account for 30-40% of Haiti's GDP, underscore the critical importance in demanding transparency and accountability from financial institutions dealing with Haitian banks. According to MigrationPolicy.org, the money they send to their loved ones, out of our $32.5 billion annual revenue generated by 500,000 Haitian-headed households, is a testament to their significant economic influence.UN RESOLUTION
Resolution 2700 (2023) by the United Nations Security Council condemns the extremely high levels of gang violence and other criminal activities in Haiti, including kidnappings, trafficking in persons, and the smuggling of migrants. The resolution also highlights the need to address the illicit financial flows that enable armed gangs to operate and pose a growing threat to the country’s stability. The easy access to ransom money and the sponsorship of terrorism through ATMs and banking transfers exacerbate this violence.ILLICIT TRANSACTIONS BY ATM
According to the U.S. International Trade Administration, Unibank and SOGEBANK operate ATM machines, and the Haitian Interbank Payment System (SPIH) is used to process transactions in real time between commercial bank accounts through the Haitian Central Bank (BRH). Moreover, the Haitian Central Bank has interconnected ATM systems of major banking institutions, including Unibank and SOGEBANK, allowing for seamless withdrawals. This interconnectivity further highlights the importance of ensuring these transactions are free from illicit activities. Recent observations and reports suggest that American banks, and other financial entities within Haiti may not be fully compliant with international anti-money laundering (AML) and anti-terrorism financing (ATF) laws. As institutions that play a critical role in the financial landscape of Haiti, their adherence to these regulations is paramount to preventing financial crimes and promoting economic stability. Citibank, the only U.S. bank in Haiti, primarily serves corporate accounts, making its compliance with these regulations particularly crucial. Moreover, I am joining in addendum to this letter the names, business names, cases of suspicion cited in the media, their net worth, and the names of their potential banks in Haiti or the US.DEMAND FOR PLAN OF ACTION:
Given the significant concerns about the compliance and enforcement issues related to potential violations of AML and ATF laws by American banks operating in Haiti, I am demanding a comprehensive plan of action from FinCEN. This plan should include, but not be limited to, the following points:1. Clarify Relationship with Unibank: Provide a detailed explanation of the nature and extent of Citibank's relationship with Unibank and UniHaiti.
1.1 Relevant Law: 31 U.S. Code § 5318 - Compliance, Examinations, and Reports
2. Comprehensive Audits: In accordance with 31 U.S. Code § 5321, conduct thorough audits to ensure compliance with AML and ATF regulations. This will help identify and mitigate any potential violations and avoid significant penalties.
2.1 Relevant Law: 31 U.S. Code § 5318(i) - Due Diligence for Correspondent Accounts and Private Banking Accounts
3. Enhance Transparency: As per 31 U.S. Code § 5311, require these banks to publicly report their AML compliance efforts. This transparency is crucial for building trust within the Haitian community and aligning with the BSA’s purpose of preventing illicit financial activities.
3.1 Relevant Law: 31 U.S. Code § 5318(h) - Anti-Money Laundering Programs
3. Provide Proof of Compliance Measures: Demonstrate that necessary measures have been taken to ensure that money transferred from Unibank accounts to Citibank is not derived from criminal activities. This includes verifying the sources of funds and conducting rigorous due diligence.
3.1 Relevant Law: 31 U.S. Code § 5318(j) - Foreign Bank Correspondent Account Records
4. Increase Regulatory Scrutiny: Under 31 U.S. Code § 5318(h)(4), increase oversight and mandatory compliance training for bank staff to enhance public-private information sharing and improve AML compliance.
4.1 Relevant Law: 31 U.S. Code § 5318(j) - Foreign Bank Correspondent Account Records
5. Investigate Suspicious Activities: Pursuant to 31 U.S. Code § 5336, thoroughly investigate the activities the individuals listed in addendum that have been linked to significant corruption, and it is vital to ensure that American banks are not inadvertently supporting their illicit activities.
5.1 Relevant Law: 31 U.S. Code § 5318(i) - Due Diligence for Correspondent Accounts and Private Banking Accounts
6. Engage Stakeholders: In line with 31 U.S. Code § 5323, engage with representatives from the Haitian diaspora to develop strategies for improving compliance and accountability within the banking sector. This includes encouraging whistleblowers to report AML violations by providing financial incentives and protections against retaliation.
6.1 Relevant Law: 31 U.S. Code § 5323 - Whistleblower Incentives and Protections
IN CONCLUSION
Given Haiti's ranking of 172nd out of 180 countries on Transparency International's Corruption Perceptions Index, and the significant role of their diaspora in the country's economy, it is imperative that American banks operating in Haiti adhere strictly to AML and ATF regulations. I urge FinCEN to increase oversight and ensure these institutions are held accountable to prevent further socio-economic destabilization of Haiti.REQUEST OF UPDATE
I request an update or acknowledgment that this complaint has been processed according to FinCEN's protocols within the prescribed time frame of your policy or bylaws. Thank you for your attention to this important matter.Sincerely,
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ADDENDUM: Accusations and Suspicious Activities of Haitian Officials with Financial Institutions Involvement
SHERIF ABDALLAH
- Sanctioned by the Canadian government for allegedly financing armed gangs, money laundering, and other acts of corruption.- Accused of facilitating the illegal entry of large-caliber weapons into Haiti, which are then distributed to armed criminals.
Related Articles of Law:
- 31 U.S. Code § 5318 - Compliance, Examinations, and Reports
- 31 U.S. Code § 5321 - Civil Penalties
Banking:
- Former vice president of Sogebank, linked to multiple offshore companies used for potentially illicit activities.
Net Worth:
- Exact net worth not documented, but significant due to his position and involvement in major financial activities in Haiti.
REGINALD BOULOS
- Multiple accusations of corruption and financial misconduct.- Implicated in schemes involving the misuse of public funds and has strong ties with powerful Haitian families involved in illicit activities.
Related Articles of Law:
- 31 U.S. Code § 5318 - Compliance, Examinations, and Reports
- 31 U.S. Code § 5321 - Civil Penalties
Banking:
- Known associations with Unibank and other local financial institutions.
Net Worth:
-Approximately $620 million.
Ethnicity/Nationality of Origin:
- Lebanon
Company:
- GB Group
ROGER JAAR
- Involvement in various financial misdeeds as revealed in the Pandora Papers, including the use of shell companies for discreet wealth management and potential tax evasion.Related Articles of Law:
- 31 U.S. Code § 5318 - Compliance, Examinations, and Reports
- 31 U.S. Code § 5321 - Civil Penalties
Banking
- Involved in significant financial operations in Haiti and abroad, including the ownership of the Coca-Cola bottling license in Haiti. His business activities are linked to various shell companies established in the late 1980s.
Net Worth:
- Estimated to be substantial due to diverse business holdings, though exact figures are not publicly disclosed.
Ethnicity/Nationality of Origin:
- Arab-Palestinian descent, born in Fort-de-France, Martinique, and primarily operating out of Miami.
Companies:
- Brasserie de la Couronne: One of Haiti’s oldest soft drink companies.
- Les Brasseurs RJ: A microbrewery located in Montreal, Quebec, Canada.
- Universal Trading & Engineering Corporation (UTECO): Providing cost-effective services and solutions to utility companies in the international marketplace.
- Universal Beverages LLC: Established in 2001, involved in various beverage operations.
- Belvil Real Estate, Inc.
- Energy System Management, Inc.
- Rj Lantern Square, LLC
- Rj Growers, LLC
- Amd Development, LLC
- Bms Wellness, LLC
- Gourmetfresh Foods, Inc.
- R. Jaar Holdings, Inc.
- Domaine Souviou: An estate in Provence, France, known for its olive oil and wine production.
GREGORY MEVS
- Linked to various allegations of financial misconduct and corruption, particularly in relation to the misuse of PetroCaribe funds.Related Articles of Law:
- 31 U.S. Code § 5318 - Compliance, Examinations, and Reports
- 31 U.S. Code § 5321 - Civil Penalties
Banking:
- Engaged in financial dealings through local banks such as Unibank and SOGEBANK.
Net Worth:
- Around $1 billion.
GREGORY BRANDT
- Faced allegations related to financial corruption and mismanagement within Haiti's financial sector.Related Articles of Law:
- 31 U.S. Code § 5318 - Compliance, Examinations, and Reports
- 31 U.S. Code § 5321 - Civil Penalties
Banking: - Likely involved with Haitian financial institutions, including Unibank.
Net Worth:
- Specific net worth not documented, but significant due to his business involvement.
CARL BRAUN
- Vice-president of Unibank's board, implicated in corruption and financial mismanagement activities, as well as potential involvement with armed gangs.Related Articles of Law:
- 31 U.S. Code § 5318 - Compliance, Examinations, and Reports
- 31 U.S. Code § 5321 - Civil Penalties
Banking:
- Directly associated with Unibank.
Net Worth:
- Detailed financial data not widely published, but likely substantial given his role.
MARC ANTOINE ACRA
- Linked to several scandals, including allegations of drug trafficking and financial corruption.Related Articles of Law:
- 31 U.S. Code § 5318 - Compliance, Examinations, and Reports
- 31 U.S. Code § 5321 - Civil Penalties
Banking:
- Associated with multiple Haitian banks, including Unibank and SOGEBANK.
Net Worth:
- About $600 million.
ANDRE APAID
- Accused of engaging in corrupt practices and financial mismanagement, with connections to other prominent Haitian business figures involved in illicit activities.Related Articles of Law:
- 31 U.S. Code § 5318 - Compliance, Examinations, and Reports
- 31 U.S. Code § 5321 - Civil Penalties
Banking:
- Likely associated with local financial institutions like Unibank and SOGEBANK.
Net Worth:
- Specific financial details not widely available, but significant given family wealth and business operations.
JOSEPH LAMBERT
- Listed in the UN 2023 report for supporting gangs in Haiti.Related Articles of Law:
- 31 U.S. Code § 5318(j) - Foreign bank correspondent account records.
Banking:
- Banking relationships with Haitian banks like Unibank for political finances.
YOURI LATORTUE
- Drug Dealing: Allegedly involved in drug trafficking networks.- Corruption: Accused of facilitating money laundering activities.
Related Articles of Law:
- 31 U.S. Code § 5336 - Transparency in corporate ownership.
Banking:
- Likely has connections with major Haitian financial institutions.
RONY CELESTIN
- Corruption: Sanctioned by the US for significant corruption, including embezzlement of state funds.Related Articles of Law:
- 31 U.S. Code § 5318(k) - Prohibition on correspondent accounts for foreign shell banks.
Banking:
- Utilizes local banks for concealing corruptly acquired funds.
MICHEL MARTELLY, Former President
- Allegations of receiving $2.6 million in bribes from Dominican Senator Félix Bautista to secure post-earthquake public works contracts.- Involvement in a scheme imposing fees on money transfers, food remittances, and international calls, collaborating with several financial entities including Unibank, Caribbean Air Mail, Inc., Unitransfer USA Inc., Unigestion Holding, S.A. (d/b/a Digicel Haiti), and Western Union Company.
Related Articles of Law:
- 31 U.S. Code § 5318 - Compliance, Examinations, and Reports
- 31 U.S. Code § 5321 - Civil Penalties
Banking:
- Utilized Unibank S.A. for personal financial transactions, including securing a $9 million loan for a beach house.
LAURENT LAMOTHE, Former Prime Minister
- Sanctioned by the US for misappropriating at least $60 million from the PetroCaribe fund intended for infrastructure investment and social welfare.Related Articles of Law:
- 31 U.S. Code § 5318 - Compliance, Examinations, and Reports
- 31 U.S. Code § 5321 - Civil Penalties
Banking:
- Linked with financial dealings through Unibank and international transfers.
JEAN-HENRY CEANT, Former Prime Minister
- Pending further specific allegations, known associations with financial mismanagement within the Martelly administration.Related Articles of Law:
- 31 U.S. Code § 5318 - Compliance, Examinations, and Reports
- 31 U.S. Code § 5321 - Civil Penalties
Banking:
- Associated with Haitian financial institutions like Unibank and SOGEBANK for political and business transactions.
Companies:
- Equity Savvy VenturesEquity Savvy Ventures
- R-Ventures is a diversified global investment holding company that invests in emerging market startups developing high-impact, technology-driven solutions. R-Ventures is a diversified global investment holding company that invests in emerging market startups developing high-impact, technology-driven solutions.
- LSL World Initiative
HERVE FOURCAND, Former Senator
- Involved in financial mismanagement and corruption during tenure.Related Articles of Law:
- 31 U.S. Code § 5322 - Criminal penalties.
Banking:
- Known associations with Unibank and other financial institutions.
GARY BODEAU, Former President of the Chamber of Deputies
Accusations:- Suspected of engaging in corrupt financial practices and supporting illicit activities.
Related Articles of Law:
- 31 U.S. Code § 5323 - Whistleblower incentives and protections.
Banking:
- Likely engaged with Haitian banks for illicit financial activities.
KENNETH MERTEN
- Former U.S. Ambassador to Haiti, involved in supporting political figures and administrations accused of corruption.Related Articles of Law:
- 31 U.S. Code § 5318 - Compliance, Examinations, and Reports - 31 U.S. Code § 5321 - Civil Penalties
SANDRA HONORE
- Former U.N. Special Representative in Haiti, involved in supporting political figures and administrations accused of corruption.Related Articles of Law:
- 31 U.S. Code § 5318 - Compliance, Examinations, and Reports
- 31 U.S. Code § 5321 - Civil Penalties
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