Financial Crime Prevention Best Practices in Congo: A Call to Action
A high-level panel discussion at the Atlantic Council highlighted the need for increased financial pressure to combat corruption and terrorism in the Democratic Republic of the Congo (DRC), where a “violent kleptocracy” has fueled an ongoing and deadly conflict.
The Need for Change
John Prendergast, co-founder of The Sentry and founding director of the Enough Project, emphasized that Washington must take a different approach to addressing financial crime in Africa. He argued that the United States should apply sanctions on illicit financial networks and crack down on money laundering in the DRC, where corruption has become so entrenched that it hampers economic growth and social progress.
The Impact of Corruption
Prendergast cited President Joseph Kabila’s rule as an example of how a corrupt leader can repurpose the state to maximize personal gain. He stressed that corruption is not just a moral issue, but also a security threat that perpetuates violent conflict and terrorism.
The Role of Banks in Facilitating Illicit Financing
The panelists presented evidence from The Sentry’s latest investigative report, “The Terrorists’ Treasury,” which details the role of banks in facilitating illicit financing that perpetuates violent kleptocracies. Holly Dranginis, senior policy analyst at The Sentry, described how a Congolese bank run by Kabila’s brother processed transactions for companies linked to Lebanese businessman Kassim Tajideen, an individual under US sanctions for his connections to Hezbollah.
Complicity of Banking Officials
The report highlights the complicity of banking officials in these illicit activities and emphasizes that strong, concerted actions by the US government are necessary to force banks to comply with anti-money laundering regulations. “By pushing anti-money laundering measures, you force the banks to care,” Prendergast said.
The Need for Coordination
Panelists also emphasized the need for coordination among international actors, including European countries, to combat financial crime in the DRC. J.R. Mailey, director of investigations at The Sentry, argued that Washington must take a more targeted approach to sanctions and anti-money laundering measures, focusing on specific individuals and institutions rather than entire regimes.
Leveraging Financial Pressure
The panel concluded by emphasizing that leveraging financial pressure is not a task for the United States alone, but requires a broad effort coordinated among actors. As Rachel Ansley, an editorial assistant at the Atlantic Council, noted, “This has to be a menu of options… it’s time for coordination and involvement of European countries.”
Key Takeaways
- Increased financial pressure is needed to combat corruption and terrorism in the DRC
- Washington must take a different approach to addressing financial crime in Africa
- Sanctions on illicit financial networks and anti-money laundering measures are necessary to force banks to comply with regulations
- Coordination among international actors, including European countries, is essential to combating financial crime in the DRC
- Leveraging financial pressure requires a broad effort coordinated among actors.