Financial Crime World

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DRC’s AML/CFT Efforts Faced with Limited Effectiveness

Kinshasa, DRC - The Democratic Republic of Congo (DRC) has made efforts to combat money laundering and financing of terrorism (AML/CFT), but its effectiveness remains limited. Despite the government’s commitment to tackling these issues, several shortcomings have hindered progress.

Comprehensive Strategy Lacking

The country lacks a comprehensive AML/CFT strategy, and national coordination is also lacking. The Committee to Combat Money Laundering and the Financing of Terrorism (COLUB) was established, but it faces resource constraints, preventing it from holding meetings and adopting measures to refine a coherent national strategy.

Technical Compliance Issues

In terms of technical compliance, the DRC’s legal framework has not been updated to keep pace with international standards. The country does not have a risk-based approach to supervision, and financial institutions and designated non-financial businesses and professions (DNFBPs) are not adequately supervised.

Challenges Faced

  • Strong informal sector
  • Extensive use of cash
  • High dollarization
  • Lack of reliable identification systems
  • Widespread corruption
  • Economic and environmental crimes (misappropriation of public funds, customs and tax fraud, illegal exploitation of natural resources, and wildlife crime)

International Cooperation

The country has made some progress in developing a legal framework for mutual legal assistance and extradition, but implementation remains limited due to the lack of requests received and issued. The cooperation between AML/CFT authorities is relatively active at the level of CENAREF, which shares information with foreign counterparts on a reactive basis. However, this cooperation is less visible at the level of regulatory and supervisory authorities of financial institutions, customs, and police.

Terrorism Risks

The DRC’s economy is also vulnerable to terrorism and its financing due to the presence of armed groups and gangs that can exploit various illicit trafficking activities and the country’s porous borders.

Conclusion

Overall, while the DRC has made some efforts to combat AML/CFT, its effectiveness remains limited. The country needs to strengthen its national coordination, update its legal framework, and improve supervision and enforcement to effectively combat these scourges.