Congo’s Banking System Must Be Held Accountable for Fueling Violence

The Democratic Republic of Congo’s banking system is perpetuating the country’s violent kleptocracy, according to a new report by The Sentry at the Enough Project. This report highlights the need for the international community to take action against the illicit financial networks that are fueling the ongoing conflict.

A Deadly Warzone with No End in Sight

The DRC is considered “by far the deadliest warzone in the world since World War II,” according to John Prendergast, co-founder of The Enough Project. Conventional tools of diplomacy and crisis response are simply inadequate to address this issue.

Banks Complicit in Illicit Financing

The Sentry’s report, titled “The Terrorists’ Treasury,” reveals how banks have been complicit in illicit financing that perpetuates violent kleptocracies. One example is a Congolese bank run by President Joseph Kabila’s brother, which processed transactions for companies linked to Lebanese businessman Kassim Tajideen.

The Channels of Illicit Activity Remain Unscrutinized

Kassim Tajideen was arrested in 2017 for his financing of Hezbollah, but the channels he used to move money “remain unscrutinized,” said Holly Dranginis, a senior policy analyst at The Sentry. This is part of a wider problem that allows for a system of organized theft.

Compliance Can Help Bring an End to Illicit Activity

Yaya J. Fanusie, director of analysis in the Center on Sanctions and Illicit Finance at the Foundation for Defense of Democracies, emphasized the importance of compliance in bringing an end to this illicit activity. “A fourth ‘c’ - compliance - could help bring this to an end,” he said.

Recommendations for Action

The report recommends that the US government use its financial tools, including sanctions and anti-money laundering measures, to address the problem. The involvement of European countries is critical in coordinating a sustained effort to hold the Congo’s banking system accountable for its complicity in fueling violence.

Key Players:

• John Prendergast: Co-founder of The Enough Project
• Holly Dranginis: Senior policy analyst at The Sentry
• Yaya J. Fanusie: Director of analysis in the Center on Sanctions and Illicit Finance at the Foundation for Defense of Democracies

Conclusion

The US government has a critical role to play in addressing this issue, but it will require a sustained effort to hold the Congo’s banking system accountable for its complicity in fueling violence. As Prendergast emphasized, “the continued reliance on the global financial system by these actors means that the international community has the power to address that dual threat.”