Financial Crime World

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Central African Republic’s Struggle with Money Laundering Cases

Bangui, Central African Republic - The Central African Republic (CAR) is facing a significant challenge in combating money laundering (ML) and terrorist financing (TF) cases due to the absence of an anti-money laundering/counter-terrorism financing (AML/CFT) criminal policy and the lack of expertise among investigative and prosecuting authorities.

Shortcomings in AML/CFT System

  • The report highlights several shortcomings in CAR’s AML/CFT system, including:
    • Failure to identify or locate assets that may be seized and confiscated as part of investigations into underlying money laundering offenses.
    • Lack of competent authorities designated to monitor non-compliance with AML/CFT obligations in respect of DNFBPs (designated non-financial businesses and professions) as a whole.

Rise of ML Cases

  • According to a recent report, ML cases arising from predicate offenses or systematically using parallel investigations are on the rise in CAR.
  • The country’s security situation remains fragile, with periods of political instability interspersed with episodes of armed conflict.

Underlying Offenses

  • CAR has experienced a range of recurrent underlying offenses that generate huge financial profits, including:
    • Misappropriation of public funds
    • Illicit trafficking in precious stones and metals
    • Drug trafficking
    • Corruption
    • Breach of trust

Recommendations

  • It is essential for CAR to strengthen its AML/CFT system, including the implementation of effective sanction mechanisms for non-compliance with information and transparency obligations.
  • The country should also enhance international cooperation in matters of mutual legal assistance and extradition in the field of AML/CFT.

National Recovery and Peacebuilding Plan (RCPCA)

  • The Central African Republic National Recovery and Peacebuilding Plan (RCPCA) aims to establish lasting peace and stability with the establishment of State authority throughout the country.
  • However, the security situation remains fragile, and the country is exposed to a range of ML/TF risks.

Sources

  • Report on the Evaluation of the Effectiveness of the System for Combating Money Laundering and Terrorist Financing in Central African Republic
  • Central African Republic National Recovery and Peacebuilding Plan (RCPCA)