Financial Crime World

The Democratic Republic of Congo’s Banking System: A Framework for Combating Money Laundering and Terrorist Financing

Overview

The banking system in the Democratic Republic of Congo (DRC) has a complex regulatory environment that aims to combat money laundering, terrorist financing, and proliferation of weapons of mass destruction. The government has implemented various laws and regulations to achieve this goal.

Key Laws and Regulations

Establishment of National Financial Intelligence Unit

  • CENAREF: A national institution with administrative and financial autonomy responsible for collecting and processing financial intelligence on money laundering and terrorist financing.
  • Interministerial Committee: Defines, facilitates, and coordinates government policy in combating money laundering and terrorist financing.

Preventive Measures

Obligations of Taxable Persons

  • Constant Monitoring: Financial institutions, the Central Bank of the Congo, and other market operators are required to constantly monitor their operations for suspicious activities.
  • Identification of Beneficial Owners: Entities must identify beneficial owners of operations and inform CENAREF of any suspicion regarding money laundering or terrorist financing.

Sanctions Regime

  • Freezing and Seizure Measures: Sanctions regime with freezing and seizure measures against perpetrators of money laundering, financing of terrorism, and proliferation of weapons of mass destruction.

Digital Banking and Technological Innovations

Increasing Diffusion of Digital Tools

  • Internet banking services, e-wallets, and other digital tools are becoming increasingly popular, encouraging people to rely on the banking system.
  • Interest in disseminating technological and computer innovations, including artificial intelligence, augmented reality, robotics, home automation, nanotechnology, and bionics.

Recent Developments

Adoption of Law No. 23/010

  • The adoption of Law No. 23/010 on Digital Code defines the institutional framework of the digitally enabled services sector and introduces preventive verification systems, general principles, and obligations applicable to the sector.

Market Response

  • Credit institutions and market operators have responded positively to these legislative interventions, with growth in terms of offers and competitiveness.
  • Continuous technological innovations and challenges require constant observation of the system capable of creating solutions, whether they are legislative or free market practices.