Democratic Republic of Congo under Increased Scrutiny: FATF and EU Crack Down on Money Laundering, Terrorist Financing

The Democratic Republic of Congo (DRC) faced increased international scrutiny in 2022-2023, with two major financial watchdogs taking action against the Central African nation.

FATF Lists DRC as a Jurisdiction under Increased Monitoring (JUI)

In October 2022, the Financial Action Task Force (FATF) 1 officially listed the DRC as a Jurisdiction under Increased Monitoring (JUI). This designation means that the DRC has strategic deficiencies in its anti-money laundering (AML) and countering the financing of terrorism (CFT) measures and needs to work closely with the FATF and technical assistance providers to address these issues.

EU Adds DRC to List of High-Risk Third Countries

In March 2023, the European Union (EU) followed suit, adding the DRC to its list of high-risk third countries 2. Like the FATF’s JUI listing, the EU designation requires the DRC to collaborate with relevant organizations to rectify its strategic deficiencies related to AML/CFT and proliferation financing.

EU Global Facility’s Scoping Mission to DRC

In a proactive step, the EU Global Facility on Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) dispatched a scoping mission to the DRC back in August 2022. During their visit, the EU Global Facility team:

1. Engaged in discussions with local authorities and other key stakeholders
2. Evaluated the DRC’s request for support to enhance its AML/CFT measures and improve its overall framework

EU Global Facility’s Training and Activities

As per the guidelines set forth in the Fourth and Fifth Anti-Money Laundering Directives3, the training and activities delivered by the EU Global Facility are geared towards empowering local authorities and relevant partners in the DRC to address and correct its strategic deficiencies within its National AML/CFT framework.