Financial Crime World

CONGOLESE GOVERNMENT REFORMS FINANCIAL FRAMEWORK TO COMBAT MONEY LAUNDERING AND TERRORISM

Kinshasa, DRC - The Congolese government has implemented significant reforms to strengthen the country’s financial system and prevent illicit activities such as money laundering and terrorism.

Enhancing Financial Intelligence and International Cooperation

The reforms aim to enhance the effectiveness of existing measures and bring the country into line with international standards set by the United Nations Security Council (Resolutions Nos. 1267, 1988, 1989, and 1373) and the Financial Action Task Force (FATF) recommendations. The National Financial Intelligence Unit (CENAREF), an autonomous institution, has been established to collect and process financial intelligence on money laundering, terrorist financing, and weapons proliferation.

Key Features of CENAREF

  • Responsible for collecting and processing financial intelligence
  • Submits quarterly and annual reports to the Minister of Finance
  • Provides valuable insights into money laundering, terrorist financing, and weapons proliferation activities

Strengthening Policy Framework

The government has established an Interministerial Committee on Combating Money Laundering and Terrorism (CILB) and an Advisory Committee on the Fight Against Money Laundering and Terrorist Financing (COLUB).

Key Responsibilities of CILB and COLUB

  • CILB: defines, facilitates, and coordinates government policy in combating money laundering and terrorism
  • COLUB: assists the government in defining and implementing national policy

New Measures to Combat Illicit Activities

The reforms introduce several key measures to combat money laundering, terrorist financing, and weapons proliferation, including:

New Measures

  • Ban on cash transactions exceeding $10,000
  • Obligations for travelers to declare cash and negotiable instruments upon entry and exit
  • Enhanced monitoring requirements for financial institutions and other taxable persons
  • Identification of beneficial owners of operations and obligations to inform CENAREF of suspicious activities
  • Custodianship of documents and records for 10 years

Sanctions Regime

The reforms also introduce a sanctions regime, including freezing and seizure of assets, to combat money laundering, terrorist financing, and weapons proliferation.

Digital Innovation in the Financial Sector

The government has recognized the importance of digital innovation in the financial sector, with the adoption of Law No. 23/010 of March 2023 on Digital Code. This law aims to define the institutional framework for digitally enabled services, including electronic commerce, electronic advertising, and personal data processing.

Credit Institutions’ Response

Credit institutions have responded positively to these reforms, committing to digitize their operations and adopt functional IT tools to address global technological developments.

Conclusion

The Congolese government’s efforts demonstrate its commitment to ensuring the integrity of the financial system and preventing illicit activities. The reforms will help harmonize the banking system, ensure consumer protection, and promote financial inclusion.