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 on Transparency International's Corruption Perceptions Index. While the law applies to public officials, it does not extend to 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, hindering foreign investment.

The Republic of Congo (Brazzaville) 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, leading to high poverty rates and limited economic diversification, with most agricultural land remaining uncultivated. Despite these issues, there are opportunities for growth in sectors like telecommunications, agriculture, and tourism, although infrastructure and governance challenges persist.

The investment climate in the Republic of Congo (Brazzaville) is challenged by a lack of transparency and significant bureaucratic hurdles, 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, foreign investors often encounter obstacles related to corruption and inefficiency in business registration and contract negotiations. Additionally, infrastructure issues, such as inconsistent electricity and internet access, further complicate the investment landscape.