Financial Crime World

FATF Non-Membership Hinders Fight Against Money Laundering and Terrorism in DRC

The Democratic Republic of Congo (DRC) has taken a significant step towards strengthening its financial system by enacting Law No. 22/068, aimed at combating money laundering, terrorist financing, and proliferation of weapons of mass destruction.

Strengthening the Financial System

Law No. 22/068 introduces several key reforms aimed at enhancing the country’s anti-money laundering and counter-terrorist financing regime. These include:

  • Establishment of a National Financial Intelligence Unit (CENAREF)
  • Interministerial Committee on Combating Money Laundering and the Financing of Terrorism and Proliferation (CILB)
  • Advisory Committee on the Fight Against Money Laundering and the Financing of Terrorism and Proliferation (COLUB)

Preventive Measures

The law also strengthens preventive measures by introducing obligations for constant monitoring, including:

  • Reporting requirements for cash transactions above $10,000
  • Mandates that taxable persons, such as banks and financial institutions, identify the beneficial owners of companies and report suspicious transactions

Digital Economy

The DRC’s efforts to combat financial crimes are further enhanced by its growing digital economy. The country has recently adopted a Digital Code aimed at regulating the sector and promoting digital innovation. The code establishes an institutional framework for the digitally enabled services sector, including:

  • Preventive verification systems
  • General principles and obligations applicable to the sector

Challenges Remain

Despite these efforts, challenges remain in terms of:

  • Banking security
  • Solvency of credit institutions
  • Continuous technological innovations and international developments require constant observation and adaptation of the system to ensure its efficiency and security

Conclusion

While Law No. 22/068 is a positive step towards strengthening the DRC’s financial system, the country’s non-membership of FATF remains a major obstacle in its efforts to combat money laundering and terrorist financing effectively. The DRC should prioritize membership in FATF to access international cooperation and expertise in combating financial crimes.

Recommendation

The DRC should prioritize membership in FATF to:

  • Access international cooperation
  • Share intelligence
  • Benefit from FATF’s expertise in combating financial crimes