Congo (Brazzaville) Country Summary

FATF Status

The Republic of the Congo is not on the FATF List of Countries that have been identified as having strategic AML deficiencies

Compliance with FATF Recommendations

The last Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Congo was undertaken in 2022. According to that Evaluation, Congo was deemed Compliant for 2 and Largely Compliant for 12 of the FATF 40 Recommendations. It was deemed Highly effective for 0 and Substantially Effective for 0 of the Effectiveness & Technical Compliance ratings.

The Republic of the Congo (ROC) has laws against corruption among public officials, but enforcement is inconsistent, resulting in a low ranking of 165 out of 180 in Transparency International's 2018 Corruption Perceptions Index. The corruption law does not cover family members of officials or political parties, and there are no specific regulations addressing conflicts of interest in government contracts. Corruption is widespread, particularly in the petroleum sector, and U.S. companies have identified it as a significant barrier to investment.

The Republic of Congo (ROC) has significant economic potential, primarily driven by its oil sector, which accounts for over 60% of government revenue. However, the economy has faced challenges due to a prolonged crisis following a drop in oil prices, resulting in high poverty rates and limited economic diversification, with most of the population engaged in the informal sector. Despite these issues, there are opportunities for growth in agriculture, telecommunications, and tourism, supported by the country's natural resources and infrastructure investments.

The investment climate in the Republic of Congo (Brazzaville) is challenged by a lack of transparency and high levels of corruption, as evidenced by its low rankings in the World Bank's Ease of Doing Business report and Transparency International's Corruption Perceptions Index. While the government has expressed a commitment to improving the investment environment and diversifying the economy beyond the oil sector, significant obstacles remain, including bureaucratic inefficiencies and a lack of infrastructure. Foreign investors face additional challenges, such as the requirement to partner with local entities in the petroleum sector and the need to navigate a complex regulatory landscape.