Financial Crime World

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Central African Republic: Financial Crime Trends and Challenges

The Central African Republic (CAR) has been grappling with financial crime trends, posing significant challenges to its economy and stability.

Assessment by the Financial Action Task Force (FATF)

In a recent report, the FATF assessed CAR’s compliance with international anti-money laundering and combating the financing of terrorism (AML/CFT) standards. According to the report, CAR scored:

  • Largely Compliant in several areas, including:
    • Assessing risk and applying a risk-based approach
    • National cooperation and coordination
    • Money laundering offence
    • Confiscation and provisional measures
    • Targeted financial sanctions related to terrorism and terrorist financing
  • Partially Compliant in areas such as:
    • Customer due diligence
    • Record keeping
    • New technologies

Challenges Facing CAR’s Efforts to Combat Financial Crime

The report highlighted several challenges facing CAR’s efforts to combat financial crime, including:

  • Lack of Effective Regulation and Supervision: The country lacks effective regulation and supervision of financial institutions and designated non-financial businesses and professions (DNFBPs).
  • Limited Reliance on Third Parties: CAR’s ability to rely on third parties for AML/CFT purposes is limited.
  • Inadequate Measures to Prevent Misuse of Cash Couriers and Reporting Suspicious Transactions: The country has struggled with implementing measures to prevent the misuse of cash couriers and reporting suspicious transactions.

Recommendations by the FATF

The FATF recommended that CAR address these shortcomings by:

  • Strengthening its regulatory framework
  • Improving supervision and enforcement
  • Enhancing cooperation with other countries

The CAR government has committed to implementing these recommendations to improve its AML/CFT regime and combat financial crime.

Conclusion

As the international community continues to monitor CAR’s progress in this area, it remains crucial for the country to take concrete steps to address these challenges and prevent financial crime from undermining its economic stability and development.