Financial Crime World

DRC Takes Bold Steps to Reform Financial Framework

The Democratic Republic of Congo (DRC) has taken significant steps to reform its financial framework, aiming to strengthen measures against money laundering, terrorist financing, and the proliferation of weapons of mass destruction.

Key Reforms

In January 2011, Law No. 11/002 was adopted, aligning the country’s legislation with international standards set by the United Nations Security Council (Resolution Nos 1267, 1988, 1989, and 1373) and the Financial Action Task Force (FATF) recommendations.

Establishment of National Financial Intelligence Unit

One of the key changes is the establishment of the National Financial Intelligence Unit (CENAREF), an independent institution responsible for collecting and processing financial intelligence related to money laundering and terrorist financing. CENAREF also prepares quarterly and annual reports on its activities, which are sent to the Minister of Finance.

Preventive Measures

The reforms have introduced new preventive measures, including:

  • Restrictions on cash transactions above US$10,000
  • Obligations for foreign nationals to declare cash and negotiable instruments upon entry and exit
  • Enhanced due diligence for beneficial owners of operations
  • Requirements for custodians to maintain records of client information for 10 years

Sanctions Regime Strengthened

The sanctions regime has also been strengthened, with provisions for freezing and seizure of assets related to money laundering, terrorist financing, and weapons proliferation. Penalties have been introduced for violations of monitoring and reporting obligations.

Commitment to Technological Innovation

In addition to the financial sector reforms, the DRC has shown a commitment to technological innovation, particularly in the areas of fintech and digital payments. The National Digital Plan (PNN) 2025 aims to promote the development of artificial intelligence, blockchain, and other technologies that can enhance financial inclusion and security.

Regulation of Digitally Enabled Services

The recent adoption of Law No. 23/010 on the Digital Code has established a framework for regulating digitally enabled services, including electronic commerce, advertising, and personal data protection.

Digitization of Operations

Credit institutions in the DRC have also committed to digitizing their operations and using functional IT tools to address global technological developments.

Ongoing Monitoring and Adaptation

The reforms are seen as a positive step towards strengthening financial regulation and preventing anomalies in the system. However, they also highlight the need for ongoing monitoring and adaptation to ensure that the Congolese banking and financial system remains resilient and competitive in an increasingly complex global environment.