Financial Crime World

Due Diligence Best Practices Fall Short in Congo’s Conflict-Ridden Supply Chains

In the Democratic Republic of Congo (DRC), a region plagued by conflict and instability, the problem of “conflict minerals” - minerals mined and traded to fuel armed groups and violence - has long been a major concern. To combat this issue, governments and international organizations have implemented mandatory due diligence schemes in supply chains aimed at preventing the trade of these minerals. However, according to experts, these measures have had limited impact on reducing violence in the region.

The Shortcomings of Current Measures

One major reason for their shortcomings is that they focus too heavily on the role minerals play in conflict from a narrow perspective - as “conflict resources” and “resource conflicts”. Instead, experts say that considering the broader concept of the “resource curse” would help address how the militarization of competition between elites and weak state institutions makes minerals a key factor in conflict.

  • Recognizing the crucial role international measures against transnational money laundering and illicit capital flows play in tackling the link between minerals and conflict
  • Addressing these underlying issues, rather than just focusing on the supply chain itself

A Comprehensive Approach to Addressing Conflict

Despite the challenges, many are calling for increased attention to this issue and for governments and international organizations to work together to develop best practices for due diligence in conflict-prone regions like the DRC. By taking a comprehensive approach to addressing the root causes of conflict, experts believe that it may be possible to reduce violence and promote stability in one of Africa’s most troubled countries.

Conclusion

In conclusion, while current due diligence measures have had limited impact on reducing violence in the DRC, experts say that considering the broader concept of the “resource curse” could help address how minerals play a key role in conflict. By recognizing the crucial role international measures against transnational money laundering and illicit capital flows play in tackling the link between minerals and conflict, and addressing these underlying issues, due diligence schemes could be more effective in preventing violence in the region.