Financial Crime World

Democratic Republic of Congo’s Anti-Money Laundering/Combating the Financing of Terrorism System: A Critical Analysis

Introduction

The Democratic Republic of Congo (DRC) is a country with significant risks of money laundering and terrorism financing. This report provides an overview of the DRC’s Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) system, its effectiveness, and areas for improvement.

Key Findings

  • Ineffective Implementation: The DRC has a legal framework to combat money laundering and terrorism financing, but it is not effectively implemented.
  • Weak National Coordination: National coordination on AML/CFT is weak, with no comprehensive strategy in place.
  • Lack of Identification System: The country lacks a reliable identification system, creating an environment conducive to crime and money laundering activities.

Sector-Specific Challenges

  • Banking Sector: The banking sector generally has a basic understanding of ML/FT risks and implements Customer Due Diligence measures.
  • Other Sectors:
    • Microfinance institutions lack adequate AML/CFT measures in place.
    • Savings and credit cooperatives do not have effective AML/CFT systems.
    • Non-profit organizations are not adequately equipped to handle AML/CFT risks.
    • Real estate agents, lawyers, notaries, accountants, and trust and company service providers lack AML/CFT measures.

Efforts to Combat Money Laundering

  • CENAREF: The DRC has established an administrative financial intelligence unit called CENAREF, which analyses and submits information to competent judicial authorities.

Challenges Ahead

The DRC faces significant risks of money laundering and terrorism financing due to corruption affecting all areas of business and public administration. Illegal exploitation of natural resources used to finance armed groups and gangs remains a pressing concern.

In conclusion, the DRC’s AML/CFT system requires improvement to effectively combat money laundering and terrorism financing. Addressing sector-specific challenges, strengthening national coordination, and implementing a reliable identification system are crucial steps towards achieving this goal.