Financial Crime World

Democratic Republic of Congo Bolsters Financial Crime Prevention Measures Following FATF Evaluation

New Strides in Money Laundering and Terrorist Financing Controls

The Democratic Republic of Congo (DRC) has taken steps to enhance its financial crime prevention framework after a recent evaluation by the Financial Action Task Force (FATF). Let’s explore the progress made in the DRC’s Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) system.

FATF Evaluation and Recommendations

  • Title: Kinshasa’s strides in Money Laundering and Terrorist Financing Controls
  • Subtitle: New measures to address FATF recommendations

August 2018: The FATF conducted an on-site evaluation of the DRC’s AML/CFT system. The assessment focused on its effectiveness and compliance with the FATF 40 Recommendations.

Commendable Progress

The FATF report acknowledged progress in several areas, such as:

  1. Customer due diligence: Improvements in understanding the customers’ identities and risk profiles.
  2. Risk-based approach to supervision: Effective supervision of financial institutions based on their risk profile.
  3. Implementation of legal frameworks: The enactment and enforcement of AML/CFT-related laws and regulations.

Areas for Improvement

However, the FATF identified areas that required attention:

  1. Enhancing regulatory and supervisory actions: Address non-compliance by financial institutions.
  2. Strengthening customer due diligence: Improve processes for high-risk and complex transactions.
  3. Improving coordination: Enhance collaboration among government agencies involved in financial crime prevention.
  4. Ensuring resources and staff: Allocate sufficient resources and staff to effectively implement the AML/CFT system.

DRC’s Response to FATF Recommendations

  • Title: Key Initiatives Taken by the Democratic Republic of Congo to Address FATF Recommendations

The National Commission for the Prevention and Combating of Money Laundering and the Financing of Terrorism (CNLTC-BRMFT) in the DRC has taken the following actions:

  1. Strengthening regulatory and supervisory actions: Increased focus on financial institutions’ AML/CFT compliance.
    • Issuance of sanctions against non-compliant institutions.
  2. Enhancing customer due diligence: Guidelines for financial institutions to bolster customer due diligence procedures for complex transactions.
  3. Improving coordination: Collaboration with central banks, the Financial Intelligence Unit, and other agencies to share information and intelligence.
  4. Allocating resources and staff: Investment in AML/CFT infrastructure and training of personnel.

Conclusion

The Democratic Republic of Congo is making strides towards a more robust and effective financial crime prevention framework. Challenges remain, but the progress made demonstrates the country’s commitment to international best practices in combating money laundering and terrorist financing.