Financial Crime World

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Central African Republic’s Anti-Money Laundering and Counter-Terrorism Financing System Under Scrutiny

A comprehensive evaluation of the Central African Republic’s (CAR) anti-money laundering (AML) and counter-terrorism financing (CFT) system has revealed a litany of shortcomings, putting the country at risk of being exploited by criminal networks.

Shortcomings in AML/CFT System

The report highlights several areas of concern:

  • Lack of Expertise: Investigative and prosecuting authorities lack expertise, leading to inconsistent prosecution of predicate offences.
  • No Formal Mechanism for Seized Assets: There is no formal mechanism for identifying and managing seized assets, nor are there any dedicated entities responsible for this task.
  • Inadequate CFT Regime: The CAR has not implemented United Nations Security Council Resolutions 1267, 1373 et seq., which require countries to take measures against terrorist financing.

Country’s Challenges

The CAR is facing significant security and political challenges, including armed conflicts and political instability, which have hindered economic and social development. In this context, the country is exposed to a range of money laundering (ML) and terrorist financing (TF) risks, including:

  • Misappropriation of public funds
  • Drug trafficking
  • Corruption
  • Human trafficking

Recommendations

To address these concerns, the CAR is urged to take concrete steps to strengthen its AML/CFT regime, including:

  • Strengthen Investigative and Prosecuting Authorities’ Expertise: Through training and capacity-building programs.
  • Implement Formal Mechanism for Seized Assets: To identify and manage seized assets effectively.
  • Improve Transparency of Legal Entities and Arrangements: By enhancing information collection, storage, and updating.
  • Introduce Effective Sanctions: For non-compliance with information and transparency obligations.
  • Establish Centralized System for AML/CFT Files: To ensure effective archiving and management of files related to international cooperation in AML/CFT matters.

Conclusion

The CAR’s failure to implement effective AML/CFT measures puts the country at risk of being exploited by criminal networks, undermining its economic development and stability. It is imperative that the government takes concrete steps to strengthen its AML/CFT regime and address these pressing concerns.