Democratic Republic of Congo Faces Increased Monitoring by Global Financial Watchdog

The Democratic Republic of Congo (DRC) is set to be placed on a list of countries subject to increased monitoring by the Financial Action Task Force (FATF), according to Communications Minister Patrick Muyaya. This decision comes as early as October 21 due to shortcomings in combating financial corruption, including money laundering and anti-terrorist financing.

Shortcomings in Combating Financial Corruption

The DRC’s inclusion on the so-called “grey list” of deficient countries is a result of its failure to effectively combat financial corruption. The country’s major industries, such as cobalt and copper mining, are facing further scrutiny from the FATF.

Consequences of Inclusion on the Grey List

Experts warn that countries on the grey list risk:

• Reputational damage: A negative impact on their international reputation and credibility.
• Ratings adjustments: Downgrades by credit rating agencies, making it more difficult to access global finance.
• Trouble obtaining global finance: Increased difficulty in securing loans and investments from international financial institutions.
• Higher transaction costs: Higher fees and charges for international transactions.

Other Countries on the Grey List

The DRC is not alone in this situation. Currently, 23 other countries are already on the grey list, including:

• African nations such as:
  • Mali
  • Uganda
  • Senegal
  • Burkina Faso
  • Morocco

FATF Meeting and Recommendations

Congolese officials have been invited to a FATF meeting in France from October 18-21. The task force will seek written confirmation from the DRC government of its high-level political commitment to fully address identified strategic gaps by implementing a plan within an agreed-upon time frame between 2023 and 2025.

About the Financial Action Task Force

The FATF was established by the Group of Seven (G7) leading economies to protect the global financial system.