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.

US Department of State Money Laundering assessment (INCSR)

The Republic of the Congo was deemed a ‘Monitored’ Jurisdiction by the US Department of State 2016 International Narcotics Control Strategy Report (INCSR). Key Findings from the report are as follows: -

The Republic of the Congo (Congo-Brazzaville) is not a major regional financial center, nor is it a major narcotics destination or source. The port city of Pointe-Noire is frequently utilized as a transshipment point for narcotics moving north to Europe or into Angola and the Democratic Republic of the Congo. Most financial crimes involve domestic corruption and embezzlement. The economy is cash dependent, relying very little on electronic transfers and checks.  When they travel, business executives and government officials alike carry large amounts of cash, which are frequently used to settle transactions. Money laundering through investments in domestic real estate is a growing problem, given increased scrutiny of funds sent overseas.

Congo-Brazzaville, as part of the Euro-CFA Zone Agreements, deposits reserves with the Bank of Central African States (BEAC), a regional central bank that serves six Central African countries. BEAC conducts the Economic Intervention Service, which harmonizes the regulation of currency exchanges in the member states of the Central African Economic and Monetary Community (CEMAC). The BEAC also supervises the country’s banking system, though evidence suggests the BEAC’s supervision is insufficient.

Rating                                                                           (100-Good / 0-Bad)
Transparency International Corruption Index                           22
World Governance Indicator – Control of Corruption              7

Corruption is rife in the Republic of the Congo (also known as Congo-Brazzaville). Almost every sector of the economy suffers from rampant corruption. President Sassou Nguesso holds a tight grip on power, thus rendering all government institutions susceptible to political interference and patronage. The extractive industries and public procurement are particularly at risk. The government has put in place an anti-corruption regulatory framework; however, implementation remains very poor and government officials engage in corruption with impunity. The Penal Code (in French) criminalizes several forms of corruption, including passive and active bribery, extortion and abuse of office in the public sector. Gifts and facilitation payments are illegal but are widely practiced in the Republic of Congo.  For further information - GAN Integrity Business Anti-Corruption Portal

The Republic of the Congo (ROC) struggled with effects of the sustained economic crisis caused by the 2014 drop in oil prices. Poor governance and a lack of economic diversification pushed the ROC government to near insolvency, reduced its creditworthiness, and forced the central bank to expend significant foreign currency reserves. Despite some progress since 2014, there are still challenges with government liquid currency reserves and the economy has remained in general decline. More recently the effects of the Russian invasion of Ukraine war have caused high inflation and spurred challenges to the government’s ability to maintain normal subsidies for critical products like bread, sugar, and fuel. Despite higher crude oil prices, the government is still importing more refined oil than it produces, increasing the burden of their decades long fuel subsidy on government coffers. In the ROC, inflation, and food prices in particular, soared to record highs due to Ukraine war. Most of the population is affected by food price inflation (as over 80 percent of consumables are imported) and global supply chain issues. These economic challenges come at a time when ROC’s ability to support growth and protect poor households is severely constrained. The government has made moves to price-control certain imported consumables to attempt to regulate prices.

The International Monetary Fund (IMF), the Bank of Central African States (BEAC), and the ROC government project gross domestic product (GDP) increase of 3.6 percent in
2023, up from 2.3 percent in 2022.

Oil represents the largest sector of the economy and contributes upwards of 60 percent of the government’s annual declared revenue. The non-oil sectors are primarily logging, telecommunications, banking, construction, and agriculture. ROC has resources for economic diversification, with vast swaths of arable land, some of the largest iron ore and potash deposits in the world, a heavily forested land mass, and a deep-water International Ship and Port Facility Security Code-certified port. ROC has been eligible for U.S. African Growth and Opportunity Act trade preferences since October 2000, providing incentives for export-related investment. ROC also participates in the Central African Economic and Monetary Community (CEMAC).

ROC has made significant investments in recent years in its infrastructure, including completing paved roads linking Brazzaville to the commercial capital of Pointe-Noire and other districts. Significant challenges remain, including ROC’s nascent, but improving, internet and inconsistent supplies of electricity and water, which present both hurdles to and opportunities for foreign direct investment. Significant sections of the country’s road system need maintenance or paving. The limited railroad network competes with truck and bus traffic for commercial cargo and limits mining sector development. However, the government reports spending significant amounts on infrastructure improvements.

Investors report that the commercial environment in ROC has not improved substantially in recent years. ROC ranked 164 out of 180 countries in Transparency International’s 2022 Corruption Perceptions Index. American businesses operating in ROC and those considering establishing a presence regularly report obstacles linked to corruption, lack of transparency, and host government inefficiency in matters such as registering businesses, obtaining land titles, paying taxes, paying subsidies, and negotiating natural resource contracts.

Country Links

Banque des Etats de l'Afrique Centrale