Commercial banks in Haiti issue new operating rules

Commercial banks operating in Haiti have been warned of heavy fines if they flout new regulations regarding invoicing of credit card transactions. The new regulations come into effect from December 1 this year.

Transactions only in Gourde

The Bank of the Republic of Haiti (BRH) in a circular to commercial banks and credit card companies, noted that credit cards issued in Haiti must be paid for exclusively in the local currency, the Gourde, regardless of where the transaction took place.

“In other words, whether the operation was carried out in Haiti or abroad, the regulation must be worded in gourde. At the time the cardholder makes a payment transaction using a credit card, the amount must be displayed in gourde at the electronic terminal payment,” the bank said in a move interpreted as clamping down on the leakage of foreign exchange.

In a statement the Central Bank said, “Banks and credit card companies are required to ensure that merchants and affiliated professionals comply strictly with the provisions of this Circular. For the edification and consumer protection, banks and credit card companies are required to display day rates visibly at least two points of each of their branches.”

- Advertisement -

Stiff penalties

Failure to comply with the new measures could result in the BRH demanding the immediate cessation of the offending practice. The central bank will also, take administrative sanctions, including issuing a letter of reprimand against the guilty institution and applying a fine of 100,000 gourdes for each violation found.

The BRH said the fine will be deducted from the balance of one of the accounts of the bank at fault with the BRH.
“However, the payment of any fine by a credit card company will be made by management check payable to the Bank of the Republic of Haiti, no later than three working days after receipt of the notice requiring payment. In case of non-payment within the deadline, penalties for delay will be applied additionally,” it added.

The BRH said the foreign currency balance of the credit cards issued in Haiti on the customer’s statement of account must be converted into gourde at 31 March 2018 at the latest at the BRH reference rate.