Financial Crime World

Central African Republic Falls Short on AML/CFT Best Practices, Experts Warn

A recent evaluation by anti-money laundering and combating the financing of terrorism (AML/CFT) experts has revealed that the Central African Republic (CAR) still has significant work to do in implementing best practices in this critical area.

Key Findings

The report highlights several key areas where CAR scored poorly, including:

  • Assessing Risk and Applying a Risk-Based Approach: CAR failed to demonstrate an adequate risk assessment and application of a risk-based approach.
  • Money Laundering Offence, Confiscation and Provisional Measures: The country’s laws and regulations did not effectively address money laundering and confiscation.
  • Transparency and Beneficial Ownership of Legal Persons and Arrangements: CAR’s lack of transparency in beneficial ownership and legal persons/arrangements poses significant risks.

Partial Compliance

While CAR showed partial compliance in areas such as:

  • National Cooperation and Coordination: The country demonstrated a good level of national cooperation and coordination.
  • Money or Value Transfer Services, Wire Transfers, and Financial Intelligence Units: CAR was found to be largely compliant with regards to these services.
  • Targeted Financial Sanctions related to Terrorism and Terrorist Financing, and Regulation and Supervision of Financial Institutions: The country demonstrated partial compliance in these areas.

Non-Compliance

CAR was found non-compliant in several key areas, including:

  • Reporting of Suspicious Transactions: The country failed to effectively report suspicious transactions.
  • DNFBPs (Designated Non-Financial Businesses and Professions) Customer Due Diligence: CAR struggled to implement effective customer due diligence for DNFBPs.
  • Higher-Risk Countries: The country failed to adequately address higher-risk countries.

Expert Concerns

Experts warn that CAR’s lack of progress in these critical areas poses significant risks not only to its own financial system but also to regional and global stability. “It is imperative that CAR takes immediate action to address these deficiencies and bring itself into line with international standards,” said a leading AML/CFT expert.

Deadline and Consequences

The country has been given a deadline to implement the necessary reforms, failure of which could result in further sanctions and isolation from the global financial system.

Response and Commitment

In response to the report, CAR authorities have promised to take immediate action to address the deficiencies highlighted. “We are committed to implementing best practices in AML/CFT and will work closely with international partners to ensure that our financial system is secure and transparent,” said a government spokesperson.

It remains to be seen whether CAR will take the necessary steps to address these critical areas and bring itself into line with international standards.