Financial Crime World

DRC Adopts Sweeping Reforms to Combat Money Laundering and Terrorist Financing

Kinshasa, DRC - The Democratic Republic of Congo (DRC) has taken a significant step in its fight against money laundering and terrorist financing by adopting sweeping reforms to its financial framework. The new law aims to strengthen the country’s anti-money laundering and counter-terrorist financing regime, aligning it with international standards set by the Financial Action Task Force (FATF) and the United Nations Security Council.

Key Reforms

The reforms establish three key entities to combat money laundering and terrorist financing:

  • National Financial Intelligence Unit (CENAREF): responsible for collecting and analyzing financial intelligence, monitoring transactions, and identifying suspicious activities.
  • Interministerial Committee on Combating Money Laundering and Terrorist Financing (CILB): an interagency committee that will oversee the implementation of the reforms and ensure coordination among government agencies.
  • Advisory Committee on the Fight Against Money Laundering and Terrorist Financing (COLUB): a body composed of experts from various fields who will provide advice and guidance to the government on matters related to money laundering and terrorist financing.

Measures to Prevent Money Laundering and Terrorist Financing

The law introduces several key measures to prevent money laundering and terrorist financing, including:

  • Cash transaction limits: prohibiting cash transactions above US$10,000.
  • Declaration of cash and negotiable instruments: requiring individuals entering or leaving the country to declare cash and negotiable instruments above US$10,000.
  • Transaction monitoring and reporting: obliging financial institutions and other entities to monitor transactions and report suspicious activities.
  • Custodian obligations: introducing obligations for custodians to maintain records of their clients’ identities and business dealings.

Sanctions Regime

The reforms also introduce a sanctions regime, providing for the freezing and seizure of assets belonging to individuals or entities involved in money laundering, terrorist financing, or the proliferation of weapons of mass destruction.

Promoting Financial Inclusion and Consumer Protection

In addition, the law aims to promote financial inclusion and consumer protection by:

  • Establishing common minimum standards: creating common minimum standards for credit institutions.
  • Digital code: introducing a digital code that will facilitate the use of electronic payments and other digital financial services.

Fintech Boom in the DRC

The DRC is also experiencing a fintech boom, with many startups and established companies offering digital payment services, e-wallets, and other innovative financial products. The government has recognized the potential of fintech to promote financial inclusion and has taken steps to regulate the sector.

National Digital Plan 2025

The National Digital Plan (PNN) 2025 aims to promote the development of artificial intelligence, blockchain, and other technologies. The plan also recognizes the importance of cybersecurity and data protection in the digital economy.

Conclusion

The DRC’s reforms demonstrate its commitment to combating money laundering and terrorist financing while promoting financial inclusion and consumer protection. The country’s fintech sector is booming, with many innovative companies offering digital payment services and other financial products. As the global financial landscape continues to evolve, it is essential for countries like the DRC to adapt their regulatory frameworks to ensure the stability and security of their financial systems.