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. 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. The Paris-based FATF was established by the G7 leading economies to protect the global financial system.
SOURCE: BUSINESS DAY LIVE