Financial crime watchdog to put DRC on its greylist

Kinshasa  — The Financial Action Task Force (FATF) plans to put the Democratic Republic of the Congo (DRC) on a list of countries subject to increased monitoring, the country’s communications minister Patrick Muyaya said on Saturday.

DRC, a major cobalt and copper producer, will go on the global financial crime watchdog’s so-called grey list of deficient countries no later than October  21 for shortcomings in stamping out financial corruption, including money laundering and antiterrorist financing.

Finance minister Nicolas Kazadi said on Friday that the DRC was “under enhanced surveillance” by the FATF and assured ministers that he would follow its recommendations.

In addition to further task force scrutiny, countries on the grey list risk reputational damage, ratings adjustments, trouble obtaining global finance and higher transaction costs, experts say.

Twenty-three countries are on the list, including African nations Mali, Uganda, Senegal, Burkina Faso and Morocco.

Financial Intelligence Centre Xolisile Khanyile has said SA is going to be greylisted because it has not met the requirements of the FATF for combating  money laundering and terrorism financing. There has been speculation SA may avoid this. 

Congolese officials are invited to a task force meeting in France from October 18-21, according to a note sent on September 30 by the general secretariat of the Congolese Financial Intelligence Unit to Kazadi, which has been seen by Reuters.

The FATF “will seek written confirmation from the DRC government of its high-level political commitment to fully address the identified strategic gaps by implementing said plan within the agreed time frame . .from 2023 to 2025,” it said.

The Paris-based FATF was established by the G7 leading economies to protect the global financial system.

Reuters