Financial Crime World

AML/CFT Efforts in DRC Fall Short

The Democratic Republic of Congo (DRC) has been struggling to combat money laundering and financing of terrorism (ML/FT), despite its commitment to addressing these issues. Unfortunately, the country’s Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) system remains ineffective due to various shortcomings.

Lack of Designated AML/CFT Supervisory Authority

One major issue is the lack of a designated AML/CFT supervisory authority for the DNFBP sector, which poses significant ML/FT risks. The sector’s informal nature and abundant cash flow make it vulnerable to criminal activities.

Limited Cooperation and Implementation

The country’s legal framework for mutual legal assistance and extradition is satisfactory, but its implementation is limited due to the lack of requests received and issued. Furthermore, cooperation between AML/CFT authorities is relatively passive, with most information sharing taking place on a reactive basis.

Conducive Environment for ML/FT Activities

The DRC’s economy is characterized by:

  • A strong informal sector
  • Extensive use of cash
  • High dollarization
  • Widespread corruption

These factors create an environment conducive to ML/FT activities. The country is also exposed to terrorism financing due to the presence of armed groups and gangs that can exploit various illicit trafficking activities.

National Policy and Coordination Challenges

The DRC has failed to develop a comprehensive AML/CFT strategy, despite adopting a sectoral anti-corruption policy. Its effectiveness is limited, and there is no coherent national approach to combating ML/FT.

The country’s legal system also faces challenges:

  • Criminal prosecuting authorities do not make optimal use of available data to investigate and prosecute cases.
  • The Office of the Special Adviser to the Head of State on Good Governance and the Fight against Corruption, Money Laundering and the Financing of Terrorism has been established, but most cases referred to the judicial authorities have not been prosecuted.

Conclusion

The DRC’s AML/CFT efforts are hindered by a lack of resources, inadequate coordination, and ineffective implementation. To effectively combat ML/FT and protect its financial system, the country needs to address these shortcomings.