Financial Crime World

DRC’s AML/CFT System Lacking in Effectiveness and Technical Compliance

KINSHASA - The Democratic Republic of Congo (DRC) is facing significant challenges in combating money laundering and terrorist financing due to a lack of effective supervision and technical compliance with international standards.

Supervisory Approach Criticized

The DRC’s supervisory approach does not appear to be based on risk assessments, nor does it relate to anti-money laundering and combating the financing of terrorism (AML/CFT). Furthermore, the country lacks designated AML/CFT supervisory authorities in the DNFBP sector, which poses high ML/FT risks.

Economic Environment Conducive to Criminal Activities

The DRC’s economy is characterized by a strong informal sector, low financial inclusion, and widespread corruption. These factors create an environment conducive to criminal activities. The country is also exposed to terrorist financing due to its porous borders and instability in neighboring countries.

Limited Implementation of AML/CFT Measures

Despite having a satisfactory legal framework for mutual legal assistance and extradition, the implementation of AML/CFT measures remains limited. The DRC’s AML/CFT system is still relatively ineffective, with notable shortcomings in national coordination, supervision policy, and technical compliance with international standards.

Criticisms of National Bodies

The report also criticizes the lack of a comprehensive AML/CFT strategy and the limited effectiveness of the Observatory for Monitoring Corruption and Professional Ethics (OSCEP). The Committee to Combat Money Laundering and the Financing of Terrorism (COLUB) lacks resources and has not been able to refine a coherent national AML/CFT strategy.

Recommendations

To effectively combat money laundering and terrorist financing, the DRC’s AML/CFT system requires significant improvement. Efforts should focus on:

  • Strengthening supervision
  • Improving coordination
  • Enhancing technical compliance with international standards

In conclusion, the DRC’s AML/CFT system is in need of substantial improvement to effectively combat money laundering and terrorist financing.