Custodial wallet / SaaS in 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.

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.

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.

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

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

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

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.

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

Identification and Verification:

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.

Ongoing Due Diligence:

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.

Enhanced Due Diligence (EDD):

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.

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.

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.

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.

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