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 has enacted several laws aimed at combating corruption, including the "Code de Transparence dans les Finances Publiques" in 2017 and the "Prévention et Lutte contre la Corruption et les Infractions Assimilées" in 2022; however, enforcement of these laws is inconsistent. Corruption is pervasive across various sectors, particularly in government procurement and the extractive industries, with U.S. firms citing it as a significant barrier to investment. Despite having an anti-corruption framework, the government officials often act with impunity, and NGOs face challenges in investigating corruption due to a lack of protection.

The Republic of the Congo (ROC) is grappling with the aftermath of an economic crisis triggered by the 2014 oil price collapse, further exacerbated by COVID-19 and the Ukraine war, leading to near insolvency and reduced creditworthiness. The economy is heavily reliant on the oil and gas sector, which accounts for over 60% of government revenue, while efforts for diversification are hindered by poor governance and infrastructure challenges. Despite a projected GDP growth of 4.4% in 2024, significant obstacles remain, including corruption and inefficiencies that deter foreign investment.

The investment climate in the Republic of the Congo (Brazzaville) is characterized by a significant reliance on the oil and gas sector, which accounts for 90% of foreign direct investment (FDI) inflows. While the government welcomes FDI in most sectors, challenges such as corruption, lack of transparency, and inefficiencies in business registration processes hinder improvement in the commercial environment. Additionally, foreign investors face restrictions in certain sectors, particularly in the petroleum industry, where joint ventures with the Congolese National Petroleum Company are mandatory.