DEMOCRATIC REPUBLIC OF CONGO Law and Practice Contributed by: Salvatrice Bahindwa, Concorde Akonkwa and David Djunga, LegalterLaw
8. Other Review/Approvals 8.1 Other Regimes Foreign Exchange Regulations
• Investor background – conducting thorough checks on the investor’s history, especially any connections to entities or states deemed hostile. • Integrity of the financial system – analysing risks related to money laundering, tax evasion, or other illicit financial activities. In practice, the DIEF collaborates closely with other relevant ministries – such as mines, hydrocarbons, telecommunications, and defence – to ensure a com - prehensive, multi-faceted assessment of potential national security risks posed by foreign investments in sensitive sectors. 7.3 Remedies and Commitments In certain sectors, Congolese participation in the capital of an investment project is required, notably in the fields of mining, telecommunications, and subcontracting. Where foreign labour is employed within the author - ised limits in an investment project, the law imposes an obligation to provide training and skills develop - ment for national workers, with the aim of enhancing their expertise and employability. The Department of Economic and Financial Intelli - gence (DIEF) works closely with other ministries and government agencies to ensure compliance with these measures. This is achieved through regular inspec - tions of facilities and operations, continuous monitor - ing of foreign investors’ activities, and the enforce - ment of sanctions in cases of non-compliance, which may include fines where violations are identified. 7.4 National Security Review Enforcement The competent authority cannot block or challenge an FDI provided that it complies with the legal require - ments for establishment or the obtaining of an opera - tional permit or licence. In the event of a dispute or challenge, the investor has access to administrative and judicial remedies, includ - ing the possibility of international arbitration pursuant to applicable treaties.
Residents of the Democratic Republic of Congo and non-residents are permitted to hold foreign currency accounts with local commercial banks and foreign banks without any obligation to repatriate funds held abroad to the DRC, except in the mining sector where the Mining Code requires companies to main - tain a 60:40 ratio between their onshore and offshore accounts respectively during the amortisation phase of any loan contracted from foreign banks. Amounts held in foreign currency accounts may be used for all lawful purposes. Pursuant to foreign currency regulations, any trans - action involving the sending or receipt of primary or secondary income and capital transfers amount - ing to USD10,000 or more, or its equivalent in other foreign currencies, requires the prior subscription of a declaration form RC ( Renseignement de Change (Exchange Control Declaration)) model, which must be completed by the sender with transfer details at an authorised bank. For financial transactions, an RC declaration form must be obtained from an authorised bank, regard - less of the amount involved. Subscription to an RC declaration form requires the presentation of support - ing documents such as invoices and contracts related to the transaction. The authorised intermediary bank is obliged to submit all supporting documents via the computer system established by the Central Bank of Congo (BCC). Furthermore, for any transfer of funds abroad, whether for payment of services or repatriation of funds to the investor’s country, a foreign exchange control com - mission of 0.02% of the transfer amount is levied by the commercial bank executing the transaction, pay - able to the BCC. Additionally, the repatriation of export proceeds from services must occur no later than 30 calendar days from the provision of the service.
204 CHAMBERS.COM
Powered by FlippingBook