Strengthening Financial Regulations to Combat Money Laundering and Terrorism in the Democratic Republic of Congo

KINSHASA - The Democratic Republic of Congo’s government has taken a significant step in strengthening its financial regulations to combat money laundering, terrorism financing, and the proliferation of weapons of mass destruction.

Establishment of National Financial Intelligence Unit (CENAREF)

According to a recent law, the CENAREF has been established to collect and process financial intelligence on illegal activities. The unit is responsible for preparing quarterly and annual reports analyzing the evolution of activities to combat money laundering and terrorist financing at national and international levels.

Preventive Measures

The law introduces several preventive measures to combat money laundering and terrorist financing, including:

• Prohibiting transactions in Congolese francs or other currencies worth $10,000 or more from being paid in cash or by bearer security.
• Obliging individuals entering or leaving the country to declare cash and negotiable instruments worth $10,000 or more.
• Requiring all taxable persons, including banks, financial institutions, and real estate agents, to maintain constant vigilance and report any suspicious activities.

Sanctions

The law also introduces sanctions, including freezing and seizure of assets, against individuals and entities involved in money laundering, terrorist financing, and the proliferation of weapons of mass destruction.

Fintech: A Key Player in Digital Transformation

The Congolese government has been actively promoting the development of fintech in the country. The National Digital Plan (PNN) - Horizon 2025 aims to promote the use of digital technologies, including artificial intelligence, blockchain, and cloud computing.

Adoption of Digital Code

In March 2023, the government adopted Law No. 23/010 on the Digital Code, which defines the institutional framework for the digitally enabled services sector. The law introduces preventive verification systems and general principles and obligations applicable to the sector.

Conclusion

The Congolese government’s efforts to strengthen its financial regulations demonstrate its commitment to combating money laundering, terrorist financing, and the proliferation of weapons of mass destruction. The introduction of fintech and digital technologies is also expected to promote financial inclusion and consumer protection.

However, continuous technological innovations and challenges in banking security and solvency require constant observation of the system to ensure its efficient and secure functioning.