Financial Crime World

Democratic Republic of Congo’s Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) Framework

Risks and General Situation

The Democratic Republic of Congo (DRC) faces significant risks related to money laundering and terrorist financing due to its economy’s strong informal sector, extensive use of cash, high dollarization, lack of reliable identification systems, and widespread corruption. These risks are exacerbated by the presence of armed groups and gangs that can exploit various illicit trafficking activities.

Key Challenges

  • Strong informal sector
  • Extensive use of cash
  • High dollarization
  • Lack of reliable identification systems
  • Widespread corruption
  • Presence of armed groups and gangs

Overall Level of Effectiveness and Technical Compliance

The DRC has put in place an AML/CFT system, but it is still relatively ineffective, with notable shortcomings in national coordination, supervision policy, and supervision of financial institutions and designated non-financial businesses and professions (DNFBPs). The legal framework developed in 2004 has not been updated to keep pace with international standards.

Key Challenges

  • Ineffective AML/CFT system
  • Notable shortcomings in national coordination and supervision policy
  • Limited supervision of financial institutions and DNFBPs
  • Outdated legal framework

Key Areas for Improvement

  1. National Policy and Coordination on Money Laundering and the Financing of Terrorism: The DRC lacks a comprehensive AML/CFT strategy, and the Committee to Combat Money Laundering and the Financing of Terrorism (COLUB) is under-resourced.
  2. Legal System and Operational Issues: CENAREF, the administrative financial intelligence unit, has limited resources and part-time board members. The criminal prosecuting authorities do not make optimal use of available data.
  3. Technical Compliance: The DRC’s legal framework has not been updated to reflect international standards.

Recommendations

The report recommends that the DRC:

  • Develop a comprehensive AML/CFT strategy
  • Enhance national coordination and supervision policy
  • Strengthen CENAREF’s resources and operations
  • Improve data sharing and analysis among competent authorities
  • Update its legal framework to align with international standards

Conclusion

The report highlights significant challenges in the DRC’s AML/CFT framework and provides recommendations for improvement. By addressing these key areas, the DRC can strengthen its ability to combat money laundering and terrorist financing.