Financial Crime World

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

Overall Effectiveness and Technical Compliance

The Democratic Republic of Congo (DRC) has implemented an AML/CFT system, but it remains relatively ineffective. Notable shortcomings exist in key mechanisms such as national coordination, supervision policy, and supervision of financial institutions and Designated Non-Financial Business and Professions (DNFBPs). The legal framework has not been updated to keep pace with international standards.

  • National Coordination: The DRC lacks a comprehensive AML/CFT strategy.
  • Supervision Policy: There is no emphasis on the risk-based approach in supervision policy.
  • Financial Institutions and DNFBPs: Supervision of financial institutions and DNFBPs is inadequate.
  • International Standards: The legal framework has not been updated to reflect international standards, including the 2012 FATF Recommendations.

National Policy and Coordination

The DRC conducted a national risk assessment in 2013, but the report was not approved. Another NRA exercise was underway at the time of the site visit. The country has adopted a sectoral anti-corruption policy and created a strategic body for this purpose: The Observatory for Monitoring Corruption and Professional Ethics (OSCEP).

  • National Risk Assessment: A national risk assessment was conducted in 2013, but the report was not approved.
  • Comprehensive Strategy: There is no comprehensive AML/CFT strategy.
  • Sectoral Policy: A sectoral anti-corruption policy has been adopted.

CENAREF is an administrative financial intelligence unit that analyzes and submits information to the competent judicial authorities. The criminal prosecuting authorities have a wide range of measures at their disposal, but they do not make optimal use of all the data made available to them. 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 to combat these scourges.

  • Financial Intelligence Unit: CENAREF is responsible for analyzing and submitting financial intelligence.
  • Criminal Prosecuting Authorities: The criminal prosecuting authorities have limited capacity to use available data effectively.

Key Challenges

The DRC’s AML/CFT system faces significant challenges, including:

  • Limited Resources: Limited resources for the Committee to Combat Money Laundering and the Financing of Terrorism (COLUB) prevent it from holding meetings and adopting measures.
  • Coordination Framework: The coordination framework in the field of counter-terrorism is provided by the National Coordination Committee to Combat International Terrorism (CNCLT), but aspects related to the financing of terrorism do not fall within its remit.

Conclusion

The DRC’s AML/CFT system requires significant improvements to address challenges such as lack of effective national coordination, outdated legal frameworks, and limited resources. Addressing these challenges is essential to improve the effectiveness of the DRC’s AML/CFT efforts and prevent the use of its financial system for illicit purposes.