Financial Crime World

Fighting Financial Crimes: A Look at Congo’s Measures Against Money Laundering and Terrorist Financing

The Democratic Republic of Congo (DRC) has been making significant strides in strengthening its anti-money laundering counter-financing of terrorism (AML/CFT) measures. Below, we discuss the DRC’s level of compliance with the Financial Action Task Force (FATF) 40 Recommendations and analyze the effectiveness of its AML/CFT system.

FATF On-site Visit Evaluation

In August 2018, an on-site visit from the FATF assessment team evaluated the DRC’s progress. The team examined various aspects of the DRC’s AML/CFT regulatory framework, including the:

  1. Legal and operational structures
  2. Supervisory and enforcement mechanism
  3. Risk assessment and customer due diligence measures

The report summarizes the findings of this evaluation and provides recommendations for improvement.

Achievements and Challenges

Enactment of AML/CFT Law

One notable achievement by the DRC was the enactment of Law No. 18/2015 of 28 December 2015 on the Prevention and Repression of Money Laundering, Terrorist Financing, and Proliferation Financing, which is a crucial step in establishing a robust AML/CFT framework.

Areas for Improvement

Despite progress, the FATF evaluation identified several areas where improvement is needed:

  1. Effectiveness of Supervision: The FATF noted the need for enhancing supervision over financial institutions and designated non-financial businesses and professions (DNFBPs).
  2. Risk Assessment Capabilities: The DRC requires improving its risk assessment capabilities.
  3. Customer Due Diligence: Systematic and ongoing customer due diligence measures need implementation.

FATF Recommendations

The FATF report encourages the DRC to prioritize these areas of improvement and work with international partners and financial intelligence units to strengthen its AML/CFT system. This is crucial for the country to ensure financial stability, mitigate the risk of illicit financial transactions, and adhere to international standards set by organizations like the FATF.

Key Recommendations

Some of the FATF recommendations for the DRC are:

  1. Strengthening supervision and enforcement mechanism.
  2. Enhancing the risk assessment capabilities.
  3. Implementing systematic and ongoing customer due diligence measures.

In conclusion, the Democratic Republic of Congo has taken important steps in the fight against financial crimes. However, the FATF on-site visit evaluation provides valuable insights and recommendations for further improvements. The DRC must address these recommendations to create a more robust and effective framework to combat money laundering, terrorist financing, and other financial crimes.