Financial Crime World

Central African Republic: A Nation Held Hostage by Corruption and Crime

Chaos and Instability Despite Peace Deal

Bangui, Central African Republic - It has been two years since 14 armed groups signed a peace deal with the government in 2019. However, the country remains in chaos. These groups still control most of the country, using extortion and illegal taxation as their main source of funding.

  • Powerful warlords are involved in the illicit taxation of cattle traders.
  • Other groups specialize in criminal markets such as human trafficking, arms trafficking, and diamond smuggling.
  • The state security services are powerless to stop them, leaving the population living in fear.

Corrupt Government Officials Enable Criminal Activity

The situation is further complicated by corrupt government officials who cooperate with criminal actors. This includes law enforcement officials and high-ranking members of the government. The country’s judicial system is weak and unable to combat organized crime, while the prison population is largely made up of pre-trial detainees.

A System of Weak Governance

The Central African Republic has no real state presence outside the capital city, Bangui. A lack of citizen participation and rule of law has created a system of weak governance throughout the country, which ranks among the most fragile states in the world.

  • Transparency and accountability are non-existent.
  • Diamond trafficking plays a key role in CAR politics.
  • Mining deals and state contracts are negotiated in secret, while public tenders are rare.

International Pressure

The international community has been critical of the government’s inability to combat organized crime. Many countries have withdrawn their support. However, the CAR has turned to China and Russia for help, with security cooperation with Russia well established and economic cooperation with China growing.

  • The country has stepped up efforts to combat human trafficking, but the outcomes are not yet visible.
  • Domestic policy-making capacity is limited, and national policies or laws targeting organized crime are scarce.

A Nation in Crisis

The Central African Republic is one of the most insecure countries in Africa, with a high level of criminal activity and no effective law enforcement. The population lives in fear of:

  • Armed groups
  • Corrupt government officials
  • Unorganized traffickers

The country’s economic and financial environment is also dire:

  • No national implementation capacity
  • A customs system that is unreliable
  • Businesses often seek tax exemptions via bribes
  • No capacity to implement anti-money laundering measures

Civil Society and Social Protection

There is little victim and witness support available in the CAR. However, international NGOs have set up trauma centres and counseling services in conflict areas. Many churches have hosted and protected internally displaced Muslim communities.

  • Civil society organizations are weak and focused more on conflict-related issues than organized crimes.
  • The media environment is corrupt and dangerous, with international journalists detained or killed while covering the conflict.

The Central African Republic is a nation held hostage by corruption and crime. It will take significant efforts to restore stability and security to the country.