The EU AML/CFT ESCAY Project Technical Assistance to the Democratic Republic of Congo
Background
The Democratic Republic of the Congo (DRC) is one of the beneficiary countries of the EU-funded AML/CFT ESCAY Project. The mutual evaluation report (MER) of the DRC that was adopted by the Council of Ministers of the GABAC in April 2021 revealed that the DRC’s ratings of compliance are low in all Immediate Outcomes (IOs), non-compliant in 15 Recommendations, partially compliant in 21 Recommendations, and largely compliant in 4 Recommendations. Since October 2022, the Financial Action Task Force (FATF) has placed the DRC on the list of jurisdictions under increased monitoring for its deficiencies in counter money laundering, terrorist financing, and proliferation financing, commonly known as the “grey list”.
In its effort to comply with the FATF standards, the DRC has established a High-Level Inter-Ministerial Steering and Monitoring Committee by Decree No. 23/07 of August 12, 2023, supported by a technical assistance coordination committee that coordinates technical assistance to effectively implement the FATF action plan. One of the specific key recommended action areas outlined by the FATF is strengthening the capabilities of investigating and prosecuting money laundering (ML) and terrorist financing (TF) within the framework of IOs 7, 8, and 9. In response to the above, the AML/CFT ESCAY Project committed to providing technical assistance to support DRC’s efforts to exit from the ICRG process specifically focusing on the above-stated Immediate Outcomes.
Limited Technical Assistance Provided
The AML/CFT ESCAY Project carried out a scoping mission to understand the needs and priorities of the DRC authorities involved in investigating and prosecuting ML/TF as well as identification, tracing and confiscation of criminal properties and property of corresponding value. The scoping mission also identified the target competent authorities that are mandated with the above functions. In line with the priority action areas agreed with the DRC authorities, the Project has successfully concluded the following actions in support of the DRC.
Training on financial investigation:
The objective of this training was to strengthen the capacity of authorities on financial investigation to enable them to effectively undertake and manage ML/TF investigation. Two rounds of training were organised benefiting 76 officers, out of which 16 (21.05%) were 34 female drawn from eight agencies including police, public prosecution, CENAREF, revenue agency, anticorruption, asset recovery, and other competent authorities. The training was carried out on 6 to 10 November 2023 and 11 to 14 December 2023 in Kinshasa.
The training covered the following key themes:
- Introduction to money laundering and terrorism financing;
- International AML/CFT standards and requirements;
- Concepts, definitions, elements, relevance, and benefit of financial investigation;
- Process of financial investigation;
- Sources of financial information and quality control
- Converting intelligence into permissible evidence;
- Planning, strategies, tools, and techniques of financial investigation
- Introduction to virtual assets and Cryptocurrency
- Public-private partnerships and its role in the effectiveness of financial investigation;
- National coordination (multiagency approach) and international cooperation
- Good practices and case studies on financial investigation
Training on asset recovery and confiscation:
The objective of this training course was to enhance the capacity of authorities to effectively identify, trace, seize/freeze, investigate recover, or confiscate assets derived from transnational organised crimes, money laundering, and terrorist financing. Two rounds of training were organised benefiting 80 officers, out of which 19 (about 23.75%) are female drawn from nine agencies including police, public prosecution, CENAREF, judiciary, revenue agency, anti-corruption, asset recovery, and others. The training was carried out on 06 to 10 November 2023 and 11 to 14 December 2023 in Kinshasa in parallel with the above training.
The training covered the following main topics:
- Introduction to money laundering and terrorism financing;
- International AML/CFT standards with an emphasis on asset recovery and confiscation;
- Concepts, definitions, elements, mechanisms of asset recovery and confiscation;
- Processes and techniques of asset recovery – planning, identifying & tracing, freezing and seizure, securing, confiscation, management, returning and disposal;
- Technics of financial profiling and investigation tools and techniques;
- Basics of virtual asset and tracing of cryptocurrencies;
- National and international cooperation in asset recovery and confiscation;
- Challenges, imitations of asset recovery and confiscation and suggested ways forward; and
- Practical simulation exercise on asset recovery and good practices.
The trainers in collaboration with representatives of CENAREF selected 23 trainees from both the training courses who will be able to replicate the training offered to other officers in DRC particularly those placed out of Kinshasa. These trainees were given a one-day training on how to design, plan, and deliver training courses, which is considered as an introductory training of trainers (ToT) course. All necessary training and reference materials were shared with these future trainers.
Additional Support from the Project
In addition to the specific training support provided, the DRC has benefited from the Project’s regional training courses and workshops organised by the AML/CFT ESCAY Project. About 45 officials representing different agencies of the DRC have attended the following trainings and workshops:
- Training on effective risk-based AML/CFT supervision;
- Financial investigation course;
- Training on asset recovery and confiscation;
- Workshop on interagency cooperation and information sharing;
- Training on trade-based money laundering and illicit financial flows;
- Training on ML/TF Risks & obligations of designated non-financial businesses & professions; and
- Other regional and international workshops and seminars.
Summary
The DRC authorities that benefited from the above technical assistance and other training and workshops are expected to improve their capacities in their respective AML/CFT related functions. The above-stated different interventions are expected to contribute towards better and more effective implementation of the FATF action plan and other measures in the DRC including but not limited to the following.
- Better utilisation of financial intelligence by competent authorities;
- Strengthened investigation and prosecution of ML/TF crimes and offenders are convicted subjected to effective, proportionate and dissuasive sanctions;
- Improved recovery and confiscation of proceeds of crimes contributing to an increased value of confiscated assets; and
- Improved compliance (technical and effectiveness) in areas related to IO6, 7, 8, 9, and others.
