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.

Corruption is a significant issue in the Republic of the Congo (ROC), where the government has a law against corruption that is inconsistently enforced, resulting in a low ranking of 165 out of 180 in Transparency International's 2018 Corruption Perceptions Index. While the law applies to public officials, it does not cover their family members or political parties, and there are no specific regulations addressing conflicts of interest in government contracts. Despite the existence of an anti-corruption framework, rampant corruption persists, particularly in the extractive industries and public procurement, with U.S. companies citing it as a barrier to investment.

The Republic of Congo (ROC) has significant economic potential, primarily driven by the 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 in 2014, leading to high poverty rates and limited diversification beyond oil and logging. Despite these issues, there are opportunities for growth in agriculture and telecommunications, as well as ongoing government efforts to improve infrastructure and attract foreign investment.

The investment climate in the Republic of Congo (Brazzaville) is challenged by significant economic risks, including high levels of corruption and inefficiency in government processes, which hinder foreign direct investment. Despite the government's commitment to improve the investment environment and diversify the economy beyond the oil sector, obstacles remain, such as a lack of transparency and a poor ease of doing business ranking. Additionally, while foreign investors can establish businesses without discrimination, they face challenges related to local employment requirements and bureaucratic hurdles.