Money Laundering Cases in Central African Republic: A Growing Concern

The Central African Republic (CAR) is facing a surge in money laundering (ML) cases arising from predicate offences, which has been exacerbated by the absence of an Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) criminal policy and the lack of expertise among investigative and prosecuting authorities.

Lack of Data and Expertise

According to recent findings, the consistency between prosecuted predicate offences and CAR’s threats and risk profile cannot be assessed due to a lack of available statistical data. Furthermore, investigative and prosecuting authorities fail to identify or locate assets that may be seized and confiscated as part of their investigations into underlying ML offences.

Threats and Risk Profile

In addition, no cases of terrorist financing (TF) have been reported in the country, despite the presence of armed groups on Central African territory. The TF threat is characterized by the existence of these groups, which pose a significant risk to national security.

Control Functions

The evaluation of control functions highlighted shortcomings in the control and supervision system for financial institutions and designated non-financial businesses and professions (DNFBPs) in CAR. Supervisors of financial institutions carry out generally satisfactory due diligence, but the system for identifying beneficial owners is weak. Moreover, there are no competent authorities designated to monitor non-compliance with AML/CFT obligations in respect of DNFBPs.

Legal Framework

The country’s general legal framework for mutual legal assistance and extradition is suitable, but there is no centralized system for archiving and managing files. This has resulted in a lack of transparency and limited access to information collected on legal entities and arrangements.

Recommendations

To mitigate these risks, CAR needs to strengthen its AML/CFT regime by implementing a criminal policy, enhancing investigative and prosecuting authorities’ expertise, and improving control functions. Additionally, the country should prioritize transparency and cooperation in international relations to prevent the misuse of its financial system for ML/TF purposes.

Conclusion

CAR’s struggle against ML/TF is a pressing concern that requires immediate attention from the government, regulatory bodies, and the international community. The country’s ability to effectively combat these risks will have far-reaching implications for its economic development and national security.