Democratic Republic of the Congo -- AML/CFT Compliance Regulatory Overview

The Democratic Republic of Congo (DRC) is in a developing stage regarding specific regulation for cryptocurrencies and virtual assets. As of late 2023/early 2024, there is no dedicated, comprehensive legal framework specifically governing virtual asset service providers (VASPs) or cryptocurrencies.

However, this does not mean VASPs in the DRC operate without AML/CFT obligations. Like many jurisdictions without specific crypto laws, the DRC is expected to apply its general anti-money laundering and combating the financing of terrorism (AML/CFT) framework to entities dealing with virtual assets, especially in line with international standards set by the Financial Action Task Force (FATF). The FATF considers VASPs as financial institutions and expects them to comply with AML/CFT requirements.

Here’s an overview based on the current situation:

AML/CFT Legislation

The primary AML/CFT legislation in the DRC that would apply by extension to VASPs is:

1. Law No. 19/006 of 25 April 2019 on Anti-Money Laundering and Combating the Financing of Terrorism (Lutte contre le blanchiment de capitaux et le financement du terrorisme).
   • This law establishes the general framework for preventing and combating money laundering and terrorist financing in the DRC, aligning the country with international standards.
   • While it does not explicitly mention "virtual assets" or "cryptocurrency," its broad definitions of financial institutions and financial activities would likely be interpreted to encompass entities that perform functions similar to traditional financial institutions but with virtual assets.

Key Influence: The DRC is a member of the Groupe d'Action Contre le Blanchiment d'Argent en Afrique Centrale (GABAC), which is a FATF-style regional body. This means the DRC is committed to implementing the FATF Recommendations, including Recommendation 15, which requires countries to regulate and supervise VASPs for AML/CFT purposes, or to prohibit them if regulation is not feasible. Although specific national legislation for this is pending, the expectation is for VASPs to adhere to the spirit of the FATF recommendations.

Customer Due Diligence (CDD) Requirements

Under the general AML/CFT framework, VASPs would be expected to implement CDD measures similar to those for traditional financial institutions:

• Identification and Verification:
  • Natural Persons: Obtain and verify the customer's name, address, date of birth, nationality, and an official identification document (e.g., national ID card, passport).
  • Legal Entities: Obtain and verify the entity's name, legal form, address, proof of incorporation, names of directors/senior management, and beneficial ownership information.
• Beneficial Ownership: Identify and take reasonable measures to verify the identity of the beneficial owner(s) of the customer, ensuring that those who ultimately own or control the customer are known.
• Purpose and Nature of the Business Relationship: Understand the purpose and intended nature of the business relationship.
• Ongoing Monitoring: Conduct ongoing monitoring of the business relationship and transactions undertaken throughout the course of that relationship to ensure that transactions are consistent with the VASP's knowledge of the customer, their business, and risk profile, including, where necessary, the source of funds.
• Enhanced Due Diligence (EDD): Apply EDD for higher-risk categories, such as politically exposed persons (PEPs), customers from high-risk jurisdictions, or complex and unusual transactions.

Suspicious Transaction Reporting (STR)

VASPs, if deemed financial institutions under the broad interpretation of Law No. 19/006, would be obligated to:

• Report Suspicious Transactions: Report any transactions (or attempted transactions) that they suspect are related to money laundering or terrorist financing to the Financial Intelligence Unit (FIU). This includes unusual patterns of transactions, transactions inconsistent with the customer's known profile, or transactions involving high-risk jurisdictions.
• No Tipping-Off: Not disclose to the customer or any third party that a STR has been filed or that an AML/CFT investigation is underway.

Record-Keeping Obligations

VASPs would be required to maintain records for a specified period, typically five (5) years, from the date of the transaction or the end of the business relationship. This includes:

• Records of all customer identification data obtained through CDD measures.
• Records of all transaction data, including the amount, currency, date, and parties involved in the transaction.
• Records of STRs filed and any internal reports or analyses.
• Records related to the analysis of complex, unusual large transactions, or unusual patterns of transactions.

Authority Overseeing Compliance

The primary authorities responsible for overseeing AML/CFT compliance in the DRC, and by extension for entities dealing with virtual assets (even without specific crypto regulation), are:

1. Banque Centrale du Congo (BCC) – The Central Bank of Congo.

   • Role: As the financial regulator, the BCC is responsible for the supervision of financial institutions and ensuring their compliance with AML/CFT regulations. While specific VASP licensing is absent, the BCC would be the authority to interpret and apply existing AML laws to VASPs, or to issue new guidance.
   • Website: www.bcc.cd

2. Cellule Nationale des Renseignements Financiers (CENAREF) – The National Financial Intelligence Unit (FIU) of the DRC.

   • Role: CENAREF is the central national authority responsible for receiving, analyzing, and disseminating suspicious transaction reports (STRs) to relevant law enforcement agencies. All STRs from VASPs (and other reporting entities) must be submitted to CENAREF.
   • Website: CENAREF does not have a distinct, publicly available website as a standalone entity; its operations are typically under the Ministry of Finance or in close coordination with the BCC. Information about CENAREF's role can usually be found on the BCC or Ministry of Finance websites.

Important Note: The regulatory landscape for virtual assets is constantly evolving. While the DRC has not yet enacted specific VASP legislation, the trend globally is towards greater regulation. VASPs operating in the DRC should monitor for new directives from the BCC or the government regarding virtual assets and should proactively implement robust AML/CFT controls in line with international best practices and the country's existing general AML framework. The BCC has previously issued warnings about the risks associated with cryptocurrencies, underscoring the need for caution and adherence to existing financial regulations.