Financial Crime World

CONGO’S FINANCIAL SYSTEM EXPOSED TO MONEY LAUNDERING AND TERRORISM RISKS

The Democratic Republic of Congo’s (DRC) financial system is plagued by a lack of effective measures to prevent money laundering and terrorist financing, despite its commitment to combating these scourges. The country’s Anti-Money Laundering and Combating Financing of Terrorism (AML/CFT) system remains ineffective, leaving it vulnerable to exploitation.

Ineffective AML/CFT Regime

According to a recent report, the DRC’s AML/CFT regime lacks coordination, supervision, and technical compliance with international standards. The country has not conducted a comprehensive risk assessment since 2013, and its national strategy to combat money laundering and terrorist financing is non-existent.

Challenges in Combating Money Laundering and Terrorist Financing

  • Lack of resources and inadequate infrastructure hinder the effective functioning of the Committee to Combat Money Laundering and the Financing of Terrorism (COLUB)
  • Financial intelligence unit, CENAREF, faces challenges in analyzing and submitting information to competent judicial authorities
  • Operational issues include:
    • Inadequate use of available data by criminal prosecuting authorities
    • Failure to prosecute most cases referred to the judiciary
    • Magistrates and judicial police officers often focus on underlying offenses rather than money laundering and terrorist financing

Vulnerabilities in the Financial System

Experts warn that the DRC’s financial system is vulnerable to exploitation by armed groups and gangs, which can use illicit activities such as drug trafficking and human smuggling to finance their operations. The country’s porous borders and instability in neighboring countries also pose a significant risk.

Recommendations for Improvement

The report concludes that the DRC must take immediate action to strengthen its AML/CFT regime, including:

  • Conducting a comprehensive risk assessment
  • Developing a national strategy
  • Improving coordination and supervision

Failure to do so could have serious consequences for the country’s financial stability and security.