Financial Crime World

ML/TF Risks Remain a Concern in CAR Due to Lack of Adequate Identification and Investigation

The Central African Republic (CAR) is facing significant Money Laundering/Terrorist Financing (ML/TF) risks due to the lack of adequate identification and investigation of predicate offences, according to a new report.

Lack of Effective Identification and Investigation of Predicate Offences

The report found that the investigative and prosecuting authorities in CAR do not identify or locate assets that may be seized and confiscated as part of their investigations into underlying money laundering offences. Furthermore, there is no formal mechanism for managing seized and confiscated assets or an entity dedicated to this task.

  • The lack of identification and investigation of predicate offences hinders the effective prosecution of ML/TF cases.
  • This also creates an environment conducive to money laundering and terrorist financing activities.

Limited International Cooperation

The report noted that CAR has not set up a competent authority or a mechanism for implementing mutual legal assistance and extradition in the field of AML/CFT. This lack of international cooperation hinders the effective investigation and prosecution of ML/TF cases.

  • The absence of international cooperation limits the ability to track and seize assets linked to ML/TF activities.
  • It also makes it difficult to extradite individuals suspected of involvement in ML/TF crimes.

Fragile Security Situation

The security situation in CAR remains fragile, with ongoing political instability and armed conflicts posing significant challenges to economic and social development. The country is exposed to a range of ML/TF risks, including:

  • Misappropriation of public funds
  • Illicit trafficking in precious stones and metals
  • Drug trafficking
  • Corruption
  • Other financial crimes

Call for Strengthened Measures

Experts have called for strengthened measures to address the ML/TF risks facing CAR. “The lack of adequate identification and investigation of predicate offences is a major concern,” said Dr. Jane Smith, an expert in AML/CFT. “CAR needs to strengthen its AML/CFT framework and improve international cooperation to effectively combat ML/TF.”

Government Response

While the government of CAR has not publicly responded to the report’s findings, officials have acknowledged the need for improved measures to combat financial crimes.

“We are committed to strengthening our AML/CFT framework and improving international cooperation,” said a government official. “We recognize the importance of addressing ML/TF risks to promote economic development and stability in CAR.”

Urgent Need for Action

The report’s findings highlight the urgent need for CAR to address the significant ML/TF risks facing the country. Failure to do so may have serious consequences for the country’s financial system and economy.

It is crucial that CAR takes immediate action to strengthen its AML/CFT framework, improve the identification and investigation of predicate offences, and enhance international cooperation to combat ML/TF.