EU Takes Action Against Terrorist Financing in Democratic Republic of Congo
The European Union has taken a significant step to combat the global circulation of dirty money by identifying several high-risk countries that pose threats to the integrity of its financial system. The latest addition to this list is the Democratic Republic of Congo, which has been flagged for its strategic deficiencies in anti-money laundering and counter-terrorism financing regimes.
Strategic Deficiencies
The Commission’s Delegated Regulation adopted on December 12, 2023, identifies the Democratic Republic of Congo as one of the countries with significant weaknesses in their financial systems. This move is aimed at protecting the EU’s financial system and promoting sustainable development.
The Staged Approach
The Commission uses a staged approach to identify high-risk third countries:
- Pre-assessment: Determining which countries will be assessed and identifying the level of priority
- Assessment: Evaluating countries based on their anti-money laundering and counter-terrorism financing regimes, with those showing significant deficiencies being listed as high-risk
List of High-Risk Countries
In addition to the Democratic Republic of Congo, other countries that have been identified as having strategic deficiencies in their AML/CFT regimes include:
- Afghanistan
- Barbados
- Burkina Faso
- Cameroon
- Haiti
- Iran
- Jamaica
- Mali
- Mozambique
- Myanmar
- Nigeria
- North Korea
- Panama
- Philippines
- Senegal
- South Africa
- South Sudan
- Syria
- Tanzania
- Trinidad and Tobago
- Uganda
- United Arab Emirates
- Vanuatu
- Vietnam
- Yemen
Methodology
The Commission’s methodology for identifying high-risk countries is based on the following criteria:
- Whether a country is identified by the European External Action Service or Europol as having a systemic impact on the integrity of the EU financial system
- Whether it was reviewed as an international offshore financial center by the International Monetary Fund
- Whether it has significant economic ties with the EU
Listing Process
The listing process is designed to ensure a fair and transparent approach to identifying high-risk countries. The Commission will continue to monitor progress in these countries and assess additional ones to ensure that the list remains effective in preventing terrorist financing.
Efforts to Reinforce Internal Security
This move comes as part of the EU’s efforts to reinforce internal security, promote sustainable development, and protect the integrity of its financial system. The European External Action Service, Europol, and other international bodies are all involved in this process.
For more information on the methodology used by the Commission to identify high-risk countries, please visit [link].