Congo’s AML/CFT System Criticized for Lack of Effectiveness
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The Democratic Republic of Congo’s (DRC) anti-money laundering (AML) and combating the financing of terrorism (CFT) system has been criticized for its limited operational capabilities and lack of reliable information security.
Weakened by Limited Capacity and Moral Integrity
According to a recent report, the Congolese AML/CFT system is weakened by the limited capacity and moral integrity of investigators and magistrates. The country’s financial intelligence unit, CENAREF, struggles to effectively analyze and submit information that may give rise to legal proceedings for money laundering and terrorist financing.
Limited Capacity of Investigators and Magistrates
Moral Integrity Issues
The report highlights that the country’s legal framework has not been updated since 2004 and does not meet international standards. Additionally, the national risk assessment conducted in 2013 was not approved, leaving the identification of risks ineffective.
Committee to Combat Money Laundering and Financing of Terrorism (COLUB)
COLUB has been established, but it lacks resources and is unable to hold regular meetings or develop a coherent national AML/CFT strategy. This lack of coordination hinders effective efforts to combat money laundering and terrorist financing.
Limited Operational Capacity
Inadequate Resources
CENAREF, which analyzes information that may lead to legal proceedings, relies on part-time board members and has limited operational capacity. The criminal prosecuting authorities also do not make optimal use of available data to identify perpetrators and bring them to justice.
Office of the Special Adviser to the Head of State
The report notes that while the Office of the Special Adviser to the Head of State on Good Governance and the Fight against Corruption, Money Laundering and the Financing of Terrorism is a major strategic response, most cases referred to judicial authorities have not been prosecuted.
Ineffective Prosecution
Limited Follow-up on Cases
The lack of effectiveness in the country’s AML/CFT system poses significant risks to national security and stability. The report urges the government to take immediate action to address these shortcomings and improve the country’s anti-money laundering and combating the financing of terrorism efforts.
Recommendations
Addressing Shortcomings
- Update the legal framework to meet international standards
- Conduct a comprehensive risk assessment and approve it
- Strengthen CENAREF’s operational capacity
- Improve coordination among authorities to combat money laundering and terrorist financing
- Ensure optimal use of available data to identify perpetrators and bring them to justice