On May 2, 2025, the Trump administration officially classified two major Haitian gangs-Viv Ansanm and Gran Grif-as foreign terrorist organizations (FTOs) and Specifically Designated Global Terrorists. This designation empowers the United States to impose extensive economic sanctions on these groups and anyone conducting business with them, including Haitian and international entities.
Impact on Haiti’s Private Sector.
• Trade Disruption: The gangs control crucial economic infrastructure, such as major ports and roadways in Port-au-Prince. Much of the movement of goods in and out of Haiti currently relies on payments to these gangs. Sanctions could halt or severely disrupt all trade, as businesses may be penalized for any perceived association or payment to these groups.
• Supply Chain Breakdown: Private sector actors, including importers, exporters, and local businesses, could face sudden shortages of goods, increased costs, and operational paralysis, especially if they are unable to access ports or roads previously controlled by the gangs.
• Legal and Financial Risks: Any private sector entity found providing “material support” to the gangs-even unwittingly-could face U.S. sanctions, criminal charges, and exclusion from the U.S. financial system. This includes not only Haitian businesses but also international firms operating in Haiti.
• Humanitarian Access: Humanitarian organizations, which often partner with private sector logistics providers, may also be forced to cease operations, further straining the availability of essential goods and services.
Impact on Haiti’s Financial Sector.
• Banking Sanctions: U.S. sanctions can extend to Haitian banks and financial institutions that facilitate transactions for or with the designated gangs. This could lead to the freezing of assets, loss of correspondent banking relationships, and exclusion from the global financial system.
• Remittances and International Transactions: Remittances, a critical source of income for many Haitian households, could be disrupted if financial institutions face heightened scrutiny or are unwilling to process transactions for fear of sanctions.
• Investor Confidence: The designation and associated sanctions are likely to further erode investor confidence, deterring foreign direct investment and complicating access to international capital markets.
Expert Assessment:
Experts warn that these measures, while intended to weaken the gangs, could exacerbate Haiti’s humanitarian crisis and economic collapse by halting trade, aid, and financial flows-effectively isolating the country from the global economy.