Congo

**Regulatory Approach:** **Highly Restrictive / De Facto Ban** within the formal financial system. The BEAC has issued a directive effectively prohibiting financial institutions from engaging in any activities related to cryptocurrencies.

**Banque des États de l'Afrique Centrale (BEAC):** The central bank for the CEMAC region, responsible for monetary policy and financial stability. This is the primary body dictating the stance on virtual assets for Congo.

**Commission Bancaire de l'Afrique Centrale (COBAC):** The regional banking supervisor, responsible for enforcing BEAC directives on commercial banks operating in CEMAC member states, including the Republic of the Congo.

At the national level, both the Ministry of Finance and Budget and the Ministry of Economy, Planning, Statistics and Forecasting are involved in financial implementation and warnings in the Republic of the Congo, though the BEAC's regional monetary policy remains paramount.

**Circular N° 001/GR/2022 of BEAC concerning the ban on cryptocurrencies and crypto assets, dated December 21, 2022.**

**Content:** This circular explicitly prohibits all financial institutions under its jurisdiction (which includes all banks and financial institutions in the Republic of the Congo) from engaging in, facilitating, or being exposed to cryptocurrencies and related activities. This includes:

Holding, buying, or selling cryptocurrencies.

Offering services related to cryptocurrencies.

Facilitating cryptocurrency transactions for clients.

Opening accounts for cryptocurrency service providers.

**URL (Official Communiqué announcing the Circular):** While finding the direct PDF of the circular on BEAC's site can be challenging, the official communiqué announcing this directive, which summarizes its content and intent, is available:

BEAC Communiqué announcing the ban on crypto-assets (This PDF is in French)

The communiqué itself references the circular: "la Banque des États de l’Afrique Centrale (BEAC) a adressé aux établissements de crédit, de microfinance et aux services postaux financiers de la CEMAC, une circulaire portant interdiction de la détention et de la transaction des crypto-actifs et assimilés." (The BEAC has sent to credit institutions, microfinance institutions, and postal financial services of CEMAC a circular prohibiting the holding and transaction of crypto-assets and similar.)

The BEAC and COBAC had issued multiple warnings to financial institutions and the public about the risks associated with cryptocurrencies even before the formal circular. These often highlighted lack of regulation, volatility, and use in illicit activities. The December 2022 circular formalized these warnings into a direct prohibition.

**Crypto Trading:** While the BEAC circular does not explicitly make it illegal for an *individual* to own or trade cryptocurrencies directly peer-to-peer, it effectively cuts off all access to the formal financial system. This means:

Banks and other financial institutions in Congo are **forbidden from facilitating any transactions** related to buying, selling, or cashing out cryptocurrencies.

It is **extremely difficult and risky** for individuals to convert fiat currency into crypto or vice-versa through legitimate channels.

There is **no consumer protection** for individuals engaged in crypto trading.

Any trading activity occurs outside the regulated financial system, potentially exposing individuals to fraud, scams, and financial losses without recourse.

**No licensed or regulated crypto exchanges** can legally operate within the formal financial system in the Republic of the Congo (or any CEMAC country).

Financial institutions are explicitly prohibited from opening accounts for or dealing with crypto exchange platforms.

Any platforms claiming to operate as exchanges within Congo would be doing so illicitly and without regulatory oversight, posing significant risks to users.

**FATF Membership/Status:** Member of GABAC. The DRC was subject to an FATF mutual evaluation in 2017 (before the Travel Rule guidance was issued).

**Adoption of Travel Rule:** No publicly available information indicates that the DRC has specifically adopted or implemented the FATF Travel Rule.

**Effective Date:** Not applicable, as it has not been adopted.

Threshold amounts are applicable for property tax deductions (e.g., 75% deduction for built properties, 50% for un-built properties) and other tax structures in Congo - Brazzaville, contradicting the claim that they are not applicable.

**Which VASPs are covered:** Not applicable, as there isn't a clear regulatory framework defining and supervising VASPs under the Travel Rule. The Banque Centrale du Congo (BCC) has generally maintained a cautious stance on cryptocurrencies, focusing on their risks.

**Reference:** While specific legislation isn't available, the BCC has previously issued statements warning the public about the risks associated with cryptocurrencies. These warnings typically do not constitute a regulatory framework for VASPs.

**Technical Implementation Requirements:** Not applicable.

**Penalties for Non-Compliance:** Not applicable for Travel Rule non-compliance. However, existing AML/CFT laws (which cover traditional financial institutions) would apply to money laundering activities in general. If crypto were used in money laundering, perpetrators would be subject to existing criminal penalties for financial crimes, but not specific Travel Rule non-compliance penalties.

**FATF Membership/Status:** Member of GABAC. The Republic of the Congo was subject to an FATF mutual evaluation in 2015.

**Which VASPs are covered:** Not applicable. The Republic of the Congo is part of the CEMAC (Central African Economic and Monetary Community) region. The regional central bank, the Banque des États de l'Afrique Centrale (BEAC), which sets monetary policy for CEMAC members, has generally adopted a very conservative, if not outright restrictive, stance on cryptocurrencies. Their focus has been on maintaining financial stability and discouraging the use of unregulated digital assets.

**Reference:** BEAC Communiqués frequently warn against the use of cryptocurrencies, often citing their speculative nature and potential for illicit finance. (Specific URL for a prohibition or strong warning from BEAC regarding crypto can be difficult to pinpoint consistently as they are often press releases or official communiqués, but the stance is clear from regional financial news).

**Regulation No. 01/18/CEMAC/UMAC/CM of 21 December 2018 on the prevention and suppression of money laundering and terrorist financing in CEMAC.** This is the foundational regional AML/CFT law that Congo, as a member, is obliged to implement. It aligns with FATF recommendations and sets out the general obligations for reporting entities.

**Specific Virtual Assets AML/CFT Instruction:**

**Instruction n°001/GRT/2022 relative à la prévention et à la lutte contre le blanchiment des capitaux et le financement du terrorisme dans le secteur des actifs virtuels au sein de la CEMAC (Instruction No. 001/GRT/2022 on the prevention and fight against money laundering and terrorist financing in the virtual assets sector within CEMAC).** This instruction, issued by the CEMAC regulatory body (likely the BEAC, in coordination with GABAC), specifically extends AML/CFT obligations to VASPs within the CEMAC zone, including Congo. It operationalizes FATF Recommendation 15 for virtual assets.

Exchange between virtual assets and fiat currencies is being formally regulated and permitted under a draft law approved by the Lower Chamber of Parliament on May 5.

Exchange between one or more forms of virtual assets.

Safekeeping and/or administration of virtual assets or instruments enabling control over virtual assets.

Participation in and provision of financial services related to an issuer's offer and/or sale of a virtual asset.

Identify the customer (natural or legal person) and verify their identity using reliable, independent source documents, data, or information.

For legal persons: understand the ownership and control structure, and identify and verify the identity of beneficial owners.

Collect information on the purpose and intended nature of the business relationship.

Conduct ongoing monitoring of the business relationship and transactions undertaken throughout the course of that relationship to ensure that transactions are consistent with the VASP's knowledge of the customer, their business, and risk profile.

Apply EDD measures for higher-risk customers, business relationships, or transactions (e.g., politically exposed persons (PEPs), cross-border correspondent relationships, complex or unusually large transactions, high-risk countries). This includes obtaining additional information on the customer, beneficial owner, source of funds/wealth, and enhanced ongoing monitoring.

May be applied in specific lower-risk situations, provided sufficient measures are taken to verify the customer's identity.

**Reporting Obligation:** Immediately report to the national Financial Intelligence Unit (FIU) any suspicious transactions, including attempted transactions, where they know, suspect, or have reasonable grounds to suspect that funds are the proceeds of a criminal activity, or are related to terrorist financing, regardless of the amount.

**No Tipping-Off:** VASPs and their employees are prohibited from disclosing to the customer or to third parties that a suspicious transaction report has been or will be submitted.

**Customer Records:** Maintain all records obtained through CDD measures (identification data, account files, business correspondence) for **at least five (5) years** after the business relationship ends.

**Transaction Records:** Maintain records of all transactions (both domestic and international) for **at least five (5) years** following the date of the transaction.

**Availability:** Records must be sufficient to permit the reconstruction of individual transactions and to provide evidence for prosecution of criminal activity. They must be made available promptly to the competent authorities upon request.

**Banque des États de l'Afrique Centrale (BEAC):**

The central bank for the CEMAC region. It issues monetary and financial regulations, including those related to virtual assets, and provides general oversight of the financial sector. The BEAC has historically maintained a cautious stance on cryptocurrencies.

**Cellule Nationale de Traitement des Informations Financières (CENTIF) du Congo:**

This is the national Financial Intelligence Unit (FIU) of the Republic of Congo. It is the body responsible for receiving, analyzing, and disseminating suspicious transaction reports to competent authorities.

**Oversight Role:** CENTIF ensures that reporting entities comply with their STR obligations and may conduct analyses to identify potential money laundering and terrorist financing activities.

*Note: Specific URL for CENTIF Congo is often embedded within a Ministry of Finance website or similar, and not always a standalone highly professional website. It operates under the Ministry of Finance and Budget.*

**Groupe d'Action contre le Blanchiment d'Argent en Afrique Centrale (GABAC):**

The regional AML/CFT body for CEMAC countries. GABAC serves as a regional FIU-like body, promoting and monitoring the implementation of AML/CFT standards among its member states, including Congo. It conducts mutual evaluations and provides guidance.

**Evolving Landscape:** The regulatory landscape for virtual assets is rapidly evolving globally. While CEMAC has issued instructions, the practical implementation, specific licensing requirements, and the level of enforcement for VASPs in Congo may still be developing.

**BEAC Stance:** The BEAC has often issued warnings or taken a restrictive approach to cryptocurrencies, reflecting concerns about financial stability, consumer protection, and illicit finance risks. VASPs should be aware of any specific advisories or prohibitions issued by the BEAC.

**National Implementation:** While CEMAC regulations are binding, the exact mechanisms for national implementation and VASP registration might vary. It is crucial for any VASP looking to operate in Congo to engage local legal counsel to ensure full compliance with both regional and any emerging national specific requirements.

**Democratic Republic of Congo (DRC):**

The UN has an active sanctions regime targeting the DRC, primarily focused on individuals and entities contributing to the conflict, engaging in human rights violations, or exploiting natural resources.

**UNSC Resolution 1533 (2004):** Established the initial arms embargo and travel ban/asset freeze.

**UNSC Resolution 1807 (2008):** Consolidated previous measures and established the current sanctions committee and panel of experts.

Subsequent resolutions continue to renew and update the regime (e.g., **UNSC Resolution 2688 (2023)** which renewed the arms embargo and sanctions measures until July 2024).

**Purpose:** To promote peace, stability, and human rights in the DRC by targeting those who undermine these goals.

**Scope:** Asset freezes, travel bans, and an arms embargo. The asset freeze applies to funds, other financial assets, and economic resources owned or controlled by designated individuals and entities. This inherently includes virtual assets.

**UN Security Council Committee established pursuant to resolution 1533 (2004) concerning the Democratic Republic of the Congo:** https://www.un.org/securitycouncil/sanctions/1533

**UN Consolidated Sanctions List (includes DRC designees):** https://www.un.org/securitycouncil/content/un-sc-consolidated-list

The RoC does not have a dedicated UN sanctions regime against it. However, individuals or entities from RoC could be designated under other UN sanctions programs (e.g., counter-terrorism, WMD proliferation) if they meet the listing criteria. VASPs must screen against the full UN Consolidated List regardless.

OFAC implements sanctions against individuals and entities linked to destabilization in the DRC, corruption, human rights abuses, and illicit mineral trade, often mirroring or expanding upon UN designations.

**DRC Sanctions Program (EO 13413, EO 13671):** Targets those contributing to the conflict, engaging in human rights abuses, or facilitating the illicit trade of natural resources in the DRC.

**Global Magnitsky Sanctions Program:** Can be used to target individuals from the DRC (or any country) involved in serious human rights abuse or corruption.

**OFAC: Democratic Republic of the Congo Sanctions:** https://ofac.treasury.gov/sanctions-programs-and-country-information/democratic-republic-congo-sanctions

**OFAC Specially Designated Nationals (SDN) and Blocked Persons List:** https://ofac.treasury.gov/specially-designated-nationals-and-blocked-persons-list-sdn-human-readable-lists

**OFAC Sanctions Compliance Guidance for the Virtual Currency Industry:** https://ofac.treasury.gov/media/19051/download

No specific OFAC program dedicated to the RoC. However, individuals or entities from RoC can be designated under other OFAC sanctions programs (e.g., Global Magnitsky, Counter-Terrorism, Cyber-Related Sanctions, Narcotics Trafficking) if they meet the criteria.

The EU has an autonomous sanctions regime concerning the DRC, often mirroring UN sanctions but sometimes including additional listings or measures. These focus on asset freezes, travel bans, and an arms embargo.

**EU Sanctions Map (search for "Democratic Republic of Congo"):** https://sanctionsmap.eu/#/main

**Council Regulation (EC) No 1183/2005** (and subsequent amending acts) concerning restrictive measures against persons and entities obstructing the peace process and violating human rights in the DRC.

No specific EU program dedicated to the RoC. However, individuals or entities from RoC can be designated under other EU sanctions programs (e.g., terrorism, human rights, cyber) if they meet the listing criteria.

**Management Commitment:** Clear support from senior management for compliance efforts.

**Risk Assessment:** Identify, assess, and mitigate sanctions risks inherent to their products, services, customers (including geographic exposure to DRC/RoC), and geographic locations.

**Internal Controls:** Policies and procedures for sanctions screening, transaction monitoring, reporting, and record-keeping.

**Testing and Auditing:** Regular independent reviews of the SCP's effectiveness.

**Training:** Ongoing training for all relevant personnel.

**"Know Your Customer" (KYC):** Enhanced Due Diligence (EDD) for customers from high-risk jurisdictions. Collect sufficient information to identify individuals and beneficial owners.

**List Screening:** Regularly screen all customers, beneficial owners, counter-parties, and in some cases, transaction data against:

**UN Consolidated Sanctions List:** Mandatory for all UN member states.

**EU Consolidated List of Persons, Groups and Entities Subject to EU Financial Sanctions:** Essential for any VASP with an EU nexus or EU customers.

Other relevant national sanctions lists (e.g., UK HM Treasury, Australian DFAT, etc.) based on the VASP's own jurisdiction and customer base.

**Real-time Screening:** For crypto transactions, screening should ideally occur in real-time or near real-time due to the speed and irreversibility of blockchain transactions.

**Beneficial Ownership:** Screen beneficial owners of entities, not just the direct account holder.

**Perpetual Screening:** Continual monitoring as sanctions lists are updated frequently.

**IP Address Blocking:** Many VASPs geo-block IP addresses from sanctioned jurisdictions to prevent access to their platforms.

**Country/Jurisdiction Restrictions:** Refuse to onboard customers from countries subject to comprehensive sanctions (e.g., Iran, North Korea, Cuba, Syria) or implement enhanced scrutiny for high-risk jurisdictions like the DRC.

**Source of Funds/Wealth:** Investigate the source of funds and wealth, especially for customers from regions known for illicit activities (e.g., conflict minerals in DRC).

**On-chain Analytics:** Use blockchain analytics tools to identify transactions linked to known sanctioned wallets, illicit addresses, or suspicious patterns that might indicate sanctions evasion or money laundering.

**Behavioral Monitoring:** Monitor transaction patterns, frequency, and amounts for unusual activity.

**Red Flags for DRC/RoC:** Be alert for transactions:

Originating from or destined for wallets linked to known armed groups, corrupt officials, or illicit mineral traders in DRC.

Involving unusual amounts or types of cryptocurrencies for the stated purpose.

Structured to avoid detection (e.g., layering, chain hopping).

**Blocking/Freezing:** Upon identification of a sanctioned individual or entity, or their property (including virtual assets), the VASP must immediately block/freeze the assets and prohibit transactions.

**Reporting:** Report the hit and the blocked assets to the relevant competent authority (e.g., OFAC, national financial intelligence unit, EU member state authority).

**No Notice:** Do not inform the sanctioned individual/entity that their assets have been frozen.

**Recommendation 6:** Requires countries to implement targeted financial sanctions related to proliferation financing (WMD).

**Recommendation 7:** Requires countries to implement targeted financial sanctions related to terrorism.

**Recommendation 10:** Customer Due Diligence, which includes screening against sanctions lists.

**Recommendation 15:** Applies to new technologies, including VASPs, requiring them to manage and mitigate risks, including sanctions evasion.

**Guidance for a Risk-Based Approach to Virtual Assets and Virtual Asset Service Providers (FATF, 2021):** Emphasizes the need for VASPs to conduct sanctions screening.