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DRC's AML/CFT Progress: FATF Evaluation

· 2 min read
Margaret Chen
Senior Fraud Investigator

Evaluating the Progress of DRC's AML/CFT Measures​

The Democratic Republic of Congo (DRC) has been a focal point for financial crimes, such as money laundering and terrorist financing. In August 2018, international organizations conducted an on-site evaluation to assess the country's progress in strengthening its Anti-Money Laundering Counter Financing of Terrorism (AML/CFT) system. The results of this evaluation, released recently, shed light on the current status of DRC's AML/CFT measures.

Findings and Progress​

  • The Financial Action Task Force (FATF) and its partners' evaluation: The FATF, an intergovernmental organization that sets international standards for combating money laundering, terrorist financing, and other related threats to the financial system, led the evaluation in collaboration with the European Union (EU) and the United Nations (UN).
  • Identified strengths: DRC demonstrated progress in several areas, including risk assessment, customer due diligence, and financial intelligence. For instance, the establishment of a financial intelligence unit, enhancements in risk assessment capabilities, and improvements in customer due diligence measures (like a beneficial ownership registry) were noted.

Area for Improvement​

  • Legal framework and enforcement: The report highlighted concerns regarding the effectiveness of DRC's legal framework and its implementation, with some laws lacking necessary clarity or being insufficiently enforced.
  • Resource allocation: There were identified issues surrounding the lack of resources available to key agencies responsible for implementing AML/CFT measures.

Recommendations and Future Steps​

  • Addressing shortcomings: The report provided recommendations, such as strengthening DRC's legal framework, improving the operational capacities of relevant agencies, and increasing international cooperation, to tackle these issues.
  • Continued support: The FATF and its partners plan to maintain their support for the DRC in its efforts to combat financial crimes and improve its AML/CFT system.

Key Developments​

  • EU's recent asset freezing: The European Commission froze €300 million worth of assets linked to illegal mining activities in the DRC.
  • The significance of ongoing support: The efforts from international organizations will be essential in sustaining the progress made in the fight against financial crimes in the DRC.