Financial Crime World

Here is the converted article in markdown format:

DRC’s Financial System Fails to Comply with Global Anti-Money Laundering Standards

The Democratic Republic of Congo (DRC) has failed to join the Financial Action Task Force (FATF), an intergovernmental body established in 1989 by the Ministers of States belonging to the G7. The DRC has also not updated its legal framework in accordance with changes to FATF recommendations, creating significant obstacles to the effectiveness of the system against money laundering and the financing of terrorism and proliferation weapons of mass destruction.

Reforms Efforts

In an effort to address these issues, Law No. 22/068 was adopted, which aims to reform the framework for combating money laundering and terrorist financing. The law updates several articles of the Constitution and relevant international resolutions, including United Nations Security Council Resolutions Nos. 1267, 1988, 1989, and 1373.

New Institutions and Mechanisms

The law also establishes new institutions and mechanisms to combat money laundering and terrorist financing, including:

  • The National Financial Intelligence Unit (CENAREF), responsible for collecting and processing financial intelligence on money laundering and terrorist financing
  • An Interministerial Committee on Combating Money Laundering and the Financing of Terrorism and Proliferation (CILB)
  • An Advisory Committee on the Fight Against Money Laundering and the Financing of Terrorism and the Proliferation of Weapons of Mass Destruction (COLUB)

New Preventive Measures

The law introduces several new preventive measures, including:

  • Increased transparency in financial transactions
  • Enhanced customer due diligence
  • Improved monitoring of suspicious transactions
  • Strengthened cooperation between financial institutions and law enforcement agencies

Challenges Ahead

Despite these efforts, the DRC’s financial system still faces significant challenges. The country’s credit institutions are struggling to digitize their operations and use functional IT tools to address global technological developments.

Conclusion

The lack of compliance with FATF recommendations is a major obstacle to the effectiveness of the system against money laundering and terrorist financing in the DRC. While the recent adoption of Law No. 22/068 represents a step forward in addressing these issues, more needs to be done to ensure that the country’s financial system is able to effectively combat these threats.

The Future of Digital in the DRC

In addition to the challenges posed by money laundering and terrorist financing, the DRC is also grappling with the rapid development of digital technologies. The country has recently adopted a National Digital Plan (PNN) – Horizon 2025, which aims to promote the development of artificial intelligence, augmented reality, robotics, home automation, nanotechnology, and bionics.

Regulatory Efforts

The plan recognizes the importance of regulating the digitally enabled services sector and has established several institutions and mechanisms to achieve this goal, including:

  • The Minister of Digital
  • The Digital Regulatory Authority
  • The National Authority for Electronic Certification
  • The National Cybersecurity Agency
  • The National Digital Council

Conclusion

The DRC’s financial system faces significant challenges in terms of combating money laundering and terrorist financing, as well as addressing the rapid development of digital technologies. More needs to be done to ensure that the country’s financial system is able to effectively combat these threats and take advantage of the opportunities posed by digital technologies.