Brandon Lee
Haiti has a complex history with American banks, dating back to the early 20th century when American intervention in the country's affairs was influenced by financial interests. Today, Citibank is the only U.S. bank operating in Haiti, primarily serving corporate accounts. This presence of Citibank in Haiti is indicative of the country's commitment to allowing foreign investment in financial services, which includes retail, commercial, investment banking, and consulting. While Citibank's operations in Haiti focus on corporate banking services, it is worth noting that residents and foreigners can hold bank accounts in both local currency and USD, showcasing the accessibility of financial services in the country.
| Characteristics | Values |
|---|---|
| Number of American banks in Haiti | 1 (Citibank) |
| Services offered by Citibank in Haiti | Corporate banking services |
| Haitian banks with ATM machines | Unibank, SOGEBANK |
| Haitian payment methods | Cash, debit cards, credit cards, cheques, SPIH, bank cards, mobile payments |
| Haitian Central Bank | Bank of the Republic of Haiti (BRH) |
| Haitian currency | Haitian gourde (HTG) |
| Remittances as % of GDP (as of September 2022) | 11% |
| Haitian bankruptcy law | Enacted in 1826, modified in 1944 |
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What You'll Learn
Citibank is the only US bank in Haiti
The Haitian Central Bank, or BRH, plays a crucial role in the country's financial system. It works with international organizations like the International Monetary Fund (IMF) and the World Bank to promote a stable macroeconomic environment. The Haitian Central Bank also oversees the Haitian Interbank Payment System (SPIH), which allows for secure and real-time funds transfer between commercial bank accounts.
The Haitian government has made commitments to allow foreign investment in financial services, including retail, commercial, investment banking, and consulting. However, Haiti is not a party to the Trade Facilitation Agreement. The country has also faced challenges in recent years due to deteriorating security, particularly in Port-au-Prince, which has impacted the operations of international organizations like the World Bank and the International Monetary Fund (IMF).
Despite these challenges, Haiti has a range of business structures available for investors, including sole proprietorships, partnerships, and corporations. The government has also been working to improve the legal framework and strengthen core public institutions to enhance economic governance.
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Cash is king in Haiti
Haiti has a complex history with American banks, with the involvement of the latter in the former's affairs sparking controversy in the past. In recent times, however, the relationship seems to be more symbiotic. Citibank is the only U.S. bank in Haiti, primarily serving corporate accounts. This is in line with Haiti's commitment to allowing foreign investment in financial services, including commercial and investment banking.
While Citibank's presence in Haiti indicates a level of American financial involvement, the day-to-day reality for Haitians is quite different. Cash is king in Haiti, with it being the most commonly used form of payment. This is understandable given that there are restrictions on the amount of money that can be withdrawn per transaction, which likely encourages the use of physical currency. While debit and credit cards are accepted by established businesses, cash is the go-to payment method for most Haitians.
The national payment system does include other payment methods besides cash, such as checks, the Haitian Interbank Payment System (SPIH), bank cards, and mobile payments. The SPIH, in particular, is a popular choice for businesses and individuals as it allows for secure, real-time transactions with very low fees. Despite these alternatives, cash remains the preferred choice for many, which may be due to the accessibility and ease of use it provides.
The Haitian Central Bank (BRH) plays a crucial role in facilitating these transactions. It oversees the SPIH system and works with institutions like the International Monetary Fund (IMF) and the World Bank to promote a stable macroeconomic environment. However, the security situation in Haiti has impacted the operations of these international financial institutions, with the World Bank and IMF evacuating their staff and suspending programs in March 2024 due to gang violence.
In summary, while Haiti has opened up to foreign investment in banking and has a US bank presence, the everyday reality is that cash remains the most dominant form of payment. This is likely due to a combination of cultural, logistical, and infrastructural factors, with the preference for cash being deeply ingrained in Haitian society.
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The Haitian Central Bank
Haiti's central bank is the Bank of the Republic of Haiti, often abbreviated as BRH (from its French name, Banque de la République d'Haïti). It was formed in 1979 from the National Bank of the Republic of Haiti, which had served as the country's bank of issue since 1910. The National Bank of the Republic of Haiti itself succeeded the National Bank of Haiti, which was established in Paris in 1881 by the French bank Crédit Industriel et Commercial.
The Bank of the Republic of Haiti is active in promoting financial inclusion policy and is a member institution of the Alliance for Financial Inclusion. It has also announced a Maya Declaration Commitment to continue modernizing the payment system and submit legislation to regulate and supervise microfinance institutions. The bank is headquartered in Port-au-Prince, which was the site of rioting in 2024, during which the bank was stormed, resulting in the deaths of three people.
Citibank is the only US bank in Haiti and primarily serves corporate accounts. There are no local correspondent banks in the country. Cash is the most common form of payment in Haiti, although debit and credit cards are accepted by established businesses. The Haitian Interbank Payment System (SPIH) is used by businesses and individuals to process transactions in real time between commercial bank accounts through the Haitian Central Bank. This system offers security, traceability, and low transaction fees.
Haiti has a largely unrestricted banking system. There are no restrictions on the inflow or outflow of capital, and remittances are the country's primary source of foreign currency. Residents and foreigners can hold bank accounts in local currency or USD, and accounts can be opened immediately with no additional fees beyond the minimum required deposit.
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Foreigners can hold Haitian bank accounts
Citibank is the only US bank in Haiti, serving primarily corporate accounts. However, foreigners can indeed hold Haitian bank accounts, in local currency or USD. Accounts can be opened immediately, with no additional fee beyond the minimum required deposit. For an account in the local currency, this is 25,000 HTG (Haitian Gourde)—around $185 as of September 2023—and for an account in US currency, the minimum deposit is $2,500. Each signatory on the account will need to provide two valid forms of identification.
There are no restrictions on foreign payments or fund transfer transactions in Haiti. While there are restrictions on the amount of money that can be withdrawn per transaction, there is no limit to the amount of foreign currency that residents can hold in their accounts, nor is there a ceiling on the amount they may transfer abroad. The Haitian gourde is convertible for commercial and capital transactions.
Foreigners with valid visas and local addresses will usually be able to open the same selection of accounts as anyone else in their new country of residence. Non-resident or offshore accounts may have more limited options and often cater to high-wealth individuals looking to hold funds abroad to diversify investments. These accounts may have high minimum balance requirements and fees, although lower-cost options are available. US citizens can open foreign bank accounts with no legal barriers, although they will need to consider the tax implications of holding money offshore.
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Haiti's bankruptcy law
Haiti is classified as one of the least developed countries in the Western Hemisphere. The Haitian government does not impose restrictions on the inflow or outflow of capital. The Law of 1989 governs international transfer operations and remittances. Remittances are Haiti's primary source of foreign currency, accounting for about eleven per cent of GDP as of September 2022. There are no restrictions or controls on foreign payments or other fund transfer transactions. While restrictions apply on the amount of money that may be withdrawn per transaction, there is no restriction on the amount of foreign currency that residents can hold in bank accounts. The Haitian gourde (HTG) is convertible for commercial and capital transactions.
Citibank is the only American bank in Haiti, serving primarily corporate accounts. Two banking institutions, Unibank and SOGEBANK, operate ATM machines. The Haitian Interbank Payment System (SPIH) is used by businesses and individuals to process transactions in real time between commercial bank accounts through the Haitian Central Bank (BRH). This type of fund transfer is secure, allows for gross real-time settlements, and has very low transaction fees. SPIH is widely preferred by Haitian businesspeople due to its traceability and safety.
Cash is the most common form of payment in Haiti, although debit and credit cards are accepted by established businesses. Haiti's national payment system includes four other payment methods: cheques, the SPIH, bank cards, and payment via mobile phones. Residents and foreigners can hold bank accounts in Haiti in local currency or USD. Accounts can be opened immediately at no additional fee beyond the minimum required deposit. The required documents to open an individual bank account include a copy of the national gazette "Le Moniteur", in which the company was announced as registered, and an initial deposit of 25,000 HTG (around $185 as of September 2023) for accounts opened in local currency, or $2,500 for accounts opened in US currency. For each signatory on the account, two valid pieces of identification are required.
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Frequently asked questions
Citibank is the only American bank in Haiti and primarily serves corporate accounts.
Two banking institutions, Unibank and SOGEBANK, operate ATM machines. Other banks include Capital Bank, Kotelam, and Koples.
Remittances are Haiti's primary source of foreign currency and were equivalent to approximately 11% of GDP as of September 2022.
International financial institutions like the World Bank and the Inter-American Development Bank have a presence in Haiti. They work with the Haitian government and Central Bank to support economic development and improve the investment climate.
