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Money Laundering Cases Arise from Predicate Offences in Central African Republic

A recent report has highlighted a significant number of money laundering (ML) cases arising from predicate offences in the Central African Republic (CAR). The lack of an anti-money laundering/combating the financing of terrorism (AML/CFT) criminal policy and expertise among investigative and prosecuting authorities have contributed to these cases.

Insufficient Data on Predicate Offences

The report noted that there is a lack of available statistical data, making it difficult to assess the consistency between predicate offences prosecuted and CAR’s threats and risk profile. This shortage of data has hindered efforts to identify and address ML risks in the country.

Inadequate Asset Seizure and Confiscation Mechanisms

The report also highlighted shortcomings in asset seizure and confiscation mechanisms, which have allowed criminals to evade justice and continue their illegal activities.

Weak Supervision and Control Functions

The evaluation of control functions revealed weaknesses in the supervision and control systems for financial institutions and non-financial businesses and professions (DNFBPs) in CAR. Supervisors of financial institutions carry out due diligence, but the system for identifying beneficial owners is weak. There are no competent authorities designated to monitor non-compliance with AML/CFT obligations among DNFBPs.

The report pointed out that there are shortcomings in the mechanisms set up to ensure transparency of legal entities and arrangements in CAR, which has allowed for their misuse for ML/TF purposes. The collection, storage, and updating of information on legal entities and arrangements are not robust, and checks on the authenticity of information are inadequate.

Limited International Cooperation

The report noted that CAR has a suitable general legal framework for mutual legal assistance and extradition, but there is no centralized system for archiving and managing files. The country has made few requests for international cooperation in matters of mutual legal assistance and extradition in the field of AML/CFT, and these requests remain unanswered.

Security and Political Challenges

The report highlighted that CAR is facing major security and political challenges that are having a significant impact on economic and social development. The country’s fragile security situation and lack of stability have created an environment conducive to ML/TF activities.

Conclusion

In conclusion, the report has identified several shortcomings in CAR’s AML/CFT system, including inadequate supervision, weak control functions, insufficient transparency and information sharing, and limited international cooperation. These weaknesses have contributed to a high number of ML cases arising from predicate offences in the country. To address these challenges, it is essential that CAR strengthens its AML/CFT framework and implements effective measures to prevent and combat ML/TF activities.