Financial Crime World

Democratic Republic of Congo Under International Scrutiny: Money Laundering and Terrorist Financing

The Democratic Republic of Congo (DRC) came under international spotlight in October 2022, when it was added to the Financial Action Task Force (FATF) list of Jurisdictions under increased monitoring. This designation resulted from strategic deficiencies in the country’s Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) regime.

FATF Designation

The European Union (EU) followed the FATF’s lead, designating the DRC as a high-risk third country in March 2023. This status necessitated closer collaboration between the DRC, FATF, and technical assistance providers to address the identified deficiencies.

###Background

PrePARations for this collaboration started much earlier through an EU Global Facility on AML/CTF scoping mission to the DRC in August 2022. The mission aimed to discuss and assess the country’s application for support in enhancing its AML/CTF measures and improving its overall framework in line with the Fourth and Fifth Anti-Money Laundering Directives (AMLD4 and AMLD5).

EU Collaboration

This collaboration has led to the delivery of various training and activities to local authorities and relevant stakeholders to help rectify strategic deficiencies in the DRC’s national AML/CTF framework. These efforts aim to:

  • Ensure effective AML/CTF framework
  • Combat money laundering, terrorist financing, and proliferation financing
  • Create a safer and more stable economic environment for Congolese citizens

Consequences for DRC

The DRC faces high stakes in addressing these strategic deficiencies. Failure to do so could result in:

  • Further international sanctions
  • Hinder economic growth and stability

FATF and EU Support

The FATF and EU provide the DRC with invaluable resources and expertise to strengthen its AML/CTF framework. This assistance enables the DRC to:

  • Develop policies and practices to combat money laundering and terrorist financing
  • Improve AML/CTF awareness among stakeholders
  • Foster a culture of compliance and transparency
  • Implement and enforce related laws and regulations effectively.

Through joint efforts, the DRC aims to create an economic environment free from the threat of money laundering, terrorist financing, and proliferation financing, and promote peace and stability for its people.