Money Laundering Cases Arise from Predicate Offences or Systematic Use of Parallel Investigations in CAR
A recent report by the International Organization has highlighted a significant number of money laundering (ML) cases arising from predicate offences or systematic use of parallel investigations in the Central African Republic (CAR). The country’s lack of an Anti-Money Laundering/Countering the Financing of Terrorism (AML/CFT) criminal policy and insufficient expertise among investigative and prosecuting authorities have contributed to this issue.
Challenges
The report notes that the consistency between predicate offences prosecuted and CAR’s threat and risk profile cannot be assessed due to a lack of available statistical data. Additionally, investigative and prosecuting authorities do not identify or locate assets that may be seized and confiscated as part of ML investigations.
Shortcomings in AML/CFT Regime
- Shortcomings in control functions to prevent the exploitation of AML/CFT regulations for financial institutions and Designated Non-Financial Businesses and Professions (DNFBPs) in CAR.
- Inadequate mechanisms set up to ensure transparency of legal entities and arrangements, leading to a lack of robust information collection, storage, and updating.
- Limited access to information collected on legal entities and arrangements, making it challenging to track ML/TF activities.
- The country has not requested or granted international cooperation in matters of mutual legal assistance and extradition related to AML/CFT.
Security and Political Challenges
CAR is facing significant security and political challenges that are impacting economic and social development. The country has experienced periods of political instability interspersed with armed conflicts since gaining independence in 1960. Although the capital city Bangui and many towns are under government control, the security situation remains fragile.
National Recovery and Peacebuilding Plan
To address these challenges, CAR has developed a National Recovery and Peacebuilding Plan (RCPCA) aimed at establishing lasting peace and stability. The country has also passed a law governing transactions linked to crypto-currencies, aiming to bring fresh impetus to its economy.
ML/TF Risks
CAR is exposed to a range of ML/TF risks, including the commission of underlying predicate offences such as misappropriation of public funds, illicit trafficking in precious stones and metals, drug trafficking, corruption, and human trafficking. The country’s fragile security situation has contributed to these risks, making it essential for CAR to strengthen its AML/CFT regime and improve international cooperation to combat ML/TF.
Urgent Action Needed
The report highlights the urgent need for CAR to address these issues and ensure that its financial system is not exploited by criminal networks. International partners should also provide support to help CAR strengthen its AML/CFT regime and enhance cooperation in the fight against ML/TF.