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FEDERAL RESERVE BANK
OF NEW YORK
Fiscal Agent o f the United States
Circular No. 10720
July 6, 1994
GUIDELINES FOR PAYMENTS RELATING TO
EXEMPT/APPROVED EXPORTS TO HAITI
To the Chief Operating Officers at All Financial Institutions
and All Cherseas Branches o f U.S. Financial Institutions:
Enclosed is an urgent notice from the Office o f Foreign Assets Control ("OFAC") o f the U.S.
Department o f the Treasury, which contains guidelines for payments relating to certain
approved/exempt shipments to Haiti and for the opening o f accounts for purposes o f family
remittances and other permitted activities.
If your institution has overseas branches, please send them a copy o f the enclosed notice.
Additional copies may be obtained from our Circulars Division (Tel. No. 212-720-5215 or 5216).
Questions on this matter should be directed to OF A C ’s Compliance Programs Division
(Tel. No. 202-622-2490).
W illiam J. M cD onough ,
President.
D EPAR TM EN T OF TH E TREASURY
W A S H I N G T O N , D .C . 2 0 2 2 0
URGENT!
URGENT!
URGENT!
OFFICE OF FOREIGN ASSETS CONTROL
TO:
CHIEF OPERA TIONS OFFICERS
A T ALL FINANCIAL INSTITUTIONS IN THE UNITED STATES AND ALL
OVERSEAS BRANCHES OF U.S. FINANCIAL INSTITUTIONS
GUIDELINES FOR PAYMENTS RELATING TO EXEMPT/APPROVED EXPORTS TO HAITI
As you know payments and transfers incidental to shipments to Haiti of informational materials needed
for the free flow of information, rice, beans, sugar, wheat flour, cooking oil, corn, corn flour, milk,
edible tallow, medicine, medical supplies, or donated food are authorized. In order to assure that these
payments flow smoothly, the Office of Foreign Assets Control has developed new guidelines for the
verification of the legitimacy of payment orders relating to the listed items.
Intermediary banks may process "fresh funds" payment orders (not involving debits to blocked
accounts) referencing the approved/exempt shipments listed above provided they have as their ultimate
destination another U.S. financial institution. The final U.S. financial institution receiving such a
payment order must obtain a signed certification from its U.S. exporter/broker customer containing the
following information:
(1) The name and address of the U.S. exporter or broker;
(2) The name of a contact person at the U.S. exporter or broker, including a phone and fax
number;
(3) In the case of a broker, the name of the non-U.S. exporter;
(4) A statement as to the type and quantity of goods exported or to be exported (including a
purchase order/proforma invoice/or invoice number);
(5) The date the goods were/are to be shipped (including shipping document number and name
of carrier for goods already shipped);
(6) The name and address of the purchaser in Haiti;
(7) The value of the shipment; and
(8) A statement from the exporter/broker that the goods exported are authorized under or
exempt from the Haitian Transactions Regulations and Executive Orders 12920 and
12922.
The bank receiving such a certification must retain a copy in its files and forward the original to the
Compliance Programs Division of the Office of Foreign Assets Control, 1500 Pennsylvania Avenue,
N.W., 2004 Annex, Washington, D.C. 20220 within ten days of receipt.
Where the payment involves a check or draft drawn on a bank in Haiti, the beneficiary's bank must
obtain the required certification from the beneficiary and make a notation below its endorsement stamp
that clearing of the item is authorized under the Haitian Transaction Regulations/Executive Orders. Any
banks subsequently handling the check can rely on the beneficiary's bank having exercised due
diligence when processing such an item.
The legitimacy of payments destined for financial institutions outside of the United States or for nonU.S. exporters/brokers must still be verified by the Office of Foreign Assets Control on a case by case
basis before being processed. The verification will require the same information as that referenced in
numbers (1) through (8) above but must be delivered with supporting documents to the Office of
Foreign Assets Control after the payment order has been initiated and entered the U.S. banking
system.
-2 Please note that debits to blocked accounts to make such payments are not allowed without a specific
authorization from the Office of Foreign Assets Control. The presumption is that checks or drafts
drawn on accounts of banks in Haiti are expected to be processed through and paid by funds in parallel
accounts. Applications to the Office of Foreign Assets Control for licenses to debit blocked accounts
related to exports must be accompanied by the same information referenced in numbers (1) through
(8) above along with supporting documentation.
Transactions which on their face indicate that they are for Diplomatic transactions or transactions
involving OFAC-registered and approved non-governmental organizations do not require certifications.
(Registered NGOs are aware that exports of humanitarian items not listed above or the commercial sale
of unlisted food items require them to have specific licenses from the Office of Foreign Assets Control.)
Where an OFAC approval is referenced, an intermediary bank processing a funds transfer from another
U.S. bank relating to such a transaction may rely on the U.S. originating bank as having exercised due
diligence with regard to the transaction.
PARALLEL ACCOUNTS
You are reminded that U.S. Banks holding correspondent accounts of banks organized under the laws
of Haiti and not listed on the listing of Specially Designated Nationals and Blocked Entities must now
block the correspondent accounts. However, U.S. banks holding such accounts are instructed and
directed to establish special licensed accounts parallel to the blocked accounts to receive "fresh funds"
related to transactions involving diplomatic transfers, OFAC-registered/approved Non-governmental
organization ("NGO") projects, family remittances of $50 per month per household, and exempt or
approved OFAC-verified exports. Correspondents are permitted to operate parallel accounts for debits
and credits related to authorized transactions. Any U.S. bank holding such an account is authorized
to receive "fresh funds" into the parallel account sent via a third country to enable the Haitian
correspondent to fund authorized exports to Haiti. A Haitian bank, for example, could route money
to its parallel account through a Mexican bank to be sure it had sufficient funds on hand to cover
payment orders relating to authorized exports. Only debits for authorized transactions, however, can
be made from parallel accounts. Money may not be moved from blocked accounts to parallel accounts
without specific authorization from the Office of Foreign Assets Control. U.S. banks holding parallel
accounts are to mail copies of monthly statements for each account to the Compliance Programs
Division, Office of Foreign Assets Control, 1500 Pennsylvania Avenue, N.W., Washington, D.C. 2 0220
REF: HP so that they arrive no later than the last business day of the month following the activity
described in each statement.
To the best of our knowledge, the only banks located in Haiti which are not organized under the laws
of Haiti are Citibank, the Bank of Boston, and the Bank of Nova Scotia ("Scotiabank").
If you have any questions regarding any^al >ect of this notification, please calj the Compliance
Programs Division of the Office of Foreign As: its Co/trol at 202X632-2490.
R/RICHARD NEWCOMB
IRECTOR
IFFICE OF FOREIGN ASSETS CONTROL
FAC R tf: C O M P L 94 7 0 5
July 0 1 . 1 9 9 4
@FedFRASER