Financial Crime World

Media Article: FinCEN Report Exposes Kleptocratic Network in Democratic Republic of Congo

The Democratic Republic of Congo (DRC) is not just a failed state, but rather a criminal enterprise ruled by institutionalized corruption and violence, according to a new report titled “A Criminal State: Understanding and Countering Institutionalized Corruption and Violence in the Democratic Republic of Congo” by Sasha Lezhnev [1].

Congo’s Long History of Violent Kleptocracy

Lezhnev’s report is the second in the Enough Project’s series on violent kleptocracies in East and Central Africa [2]. It argues that Congo’s ruling networks and commercial partners hijack governing institutions to maintain impunity for resource extraction and regime security [2]. This isn’t a new phenomenon—the DRC has seen various forms of violent kleptocracy over the past 130 years, with leaders such as King Leopold II, Mobutu Sese Seko, and current President Joseph Kabila employing violence to maintain power, suppress dissent, and divert billions of dollars from the Congolese state and people to their own pockets [1].

Missing Funds and International Partners

According to the report, up to $4 billion goes missing or is stolen annually during Kabila’s tenure through the manipulation of mining contracts, budgets, and state assets, contributing to the lack of development for the vast majority of Congolese citizens [1]. Commercial partners, including international companies and individuals, have benefited significantly from these illicit deals, reportedly paying large bribes to secure mineral concessions at advantageous prices [1]. For example, Israeli businessman Dan Gertler is said to have paid over $100 million in bribes to Congolese officials through the US hedge fund Och-Ziff [1]. This cycle of violence, theft, and impunity persists, fueling conflicts that have claimed the lives of at least 5.4 million people and subjected hundreds of thousands to sexual violence [1].

Seven Pillars of Kleptocratic Regime

The report identifies seven “pillars” that enable the kleptocratic regime in democratic Congo to remain in power and control the state and its vast natural resource base [1]:

  1. Allowing army commanders to exploit resources and citizens, leading to cycles of conflict.
  2. Repressing pro-democracy movements and maintaining impunity for regime-connected elites.
  3. Ensuring minimal accountability for regime-connected elites through judicial systems that target opponents and low-level figures rather than high-level perpetrators of corruption and human rights abuses.
  4. Creating parallel state structures and co-opting rebel groups.
  5. Expecting high-level officials to pass payments up the chain and skimming the top.
  6. Hijacking reforms and selling natural resources to outsiders at low prices to reap massive profits.
  7. Creating uncertainty on policies to increase corruption.

The DRC Government: A Facade for Theft and Predation

The report argues that the DRC government, an institutional façade for the enterprise of theft and predation, resists serious reforms to its army, justice sector, and state-owned companies—the root causes of many crises in Congo [1].

Recommendations

Lezhnev recommends a shift in international policymakers’ perception of the DRC from a fragile or failed state to a kleptocratic one [1]. He suggests policies focused on financial pressure, creating accountability for financial and human rights crimes, and supporting peace, human rights, and governance reforms [1]. Implementing targeted sanctions, enhanced anti-money laundering measures, and collaborating on information sharing, capacity building programs, and enforcement are some of the suggested steps to bring about change in the DRC [1]. By applying unutilized leverage through financial pressure and countering money laundering activities, international policymakers can help shift power dynamics and ultimately contribute to creating a more peaceful and capable state in the Democratic Republic of Congo [1].

[1] Lezhnev, S. (2023). A Criminal State: Understanding and Countering Institutionalized Corruption and Violence in the Democratic Republic of Congo. Enough Project. [2] Enough Project. (2023). Violent Kleptocracies in East and Central Africa. Enough Project.