Financial Crime World

FATF and the Fight Against Money Laundering and Terrorist Financing: A Review of Congo’s Efforts

The Democratic Republic of Congo (DRC) has taken significant steps to reform its legal framework and strengthen its financial system in the fight against money laundering and terrorist financing. This effort is crucial, as the country faces ongoing challenges posed by organized crime.

The DRC’s efforts are guided by the Financial Action Task Force (FATF), which was created in 1989 to combat money laundering and terrorist financing. Despite its efforts, the DRC’s legal framework has not kept pace with changes to the FATF recommendations, hindering the effectiveness of the system.

To address this issue, Law No. 22/068 was recently adopted to reform the framework in line with relevant international standards and recommendations. The law aims to strengthen preventive measures, enhance transparency, and introduce sanctions for non-compliance.

Establishment of Key Institutions

The law establishes three key institutions:

  • National Financial Intelligence Unit (CENAREF): responsible for collecting and processing financial intelligence
  • Interministerial Committee on Combating Money Laundering and Terrorist Financing (CILB): defines, facilitates, and coordinates government policy in this area
  • Advisory Committee on the Fight Against Money Laundering and Terrorist Financing (COLUB): assists the Government in defining and implementing national policy

Preventive Measures

The law introduces several preventive measures to combat money laundering and terrorist financing:

  • Cash transactions: Any transaction exceeding a certain amount must be reported to the authorities.
  • Customer due diligence: Financial institutions are required to conduct thorough customer due diligence, including identification and verification of customers.
  • Transaction monitoring: Financial institutions must monitor transactions and report suspicious activities.
  • Sanctions for non-compliance: Those who fail to comply with these measures may face sanctions.

Digitalization Efforts

The DRC is also focusing on digitalization efforts to enhance financial inclusion and consumer protection. The recent adoption of Law No. 23/010 on Digital Code aims to establish a regulatory framework for the digitally enabled services sector, including electronic commerce, advertising, identification, and data processing.

Conclusion

The DRC’s efforts to reform its legal framework are a positive step towards strengthening its financial system and combating money laundering and terrorist financing. However, it is essential that these efforts continue to evolve in response to changing global standards and technological innovations. The country must remain vigilant in addressing the ongoing challenges posed by organized crime and ensure that its financial system remains secure and efficient.

This article has been written by a member of GLI’s international panel of experts, who has been exclusively appointed for this task as a leading professional in their field. The article has undergone rigorous editing and review to ensure its accuracy, relevance, and style.