U.S. Treasury Blacklists DRC Armed Group and Hong Kong Traders Over Conflict Minerals

The U.S. Treasury Department’s Office of Foreign Assets Control on 12 August imposed sanctions on the Coalition des Patriotes Résistants Congolais–Force de Frappe (PARECO-FF), a Congolese mining cooperative and two Hong Kong trading houses for financing and facilitating the illicit trade of conflict minerals from the Democratic Republic of the Congo. OFAC designated the Congolese firm Cooperative des Artisanaux Miniers du Congo (CDMC) and Hong Kong-based East Rise Corporation Limited and Star Dragon Corporation Limited for purchasing and exporting minerals extracted from areas controlled by PARECO-FF in Rubaya, a region rich in cobalt and other critical inputs for electronics. The armed group is accused of forced labour, illegal taxation and executions to maintain control of the mines. The entities were sanctioned under Executive Order 13413. All property and interests in property subject to U.S. jurisdiction are now blocked, and U.S. persons are generally prohibited from dealing with the designated parties. Treasury said the action aims to cut a funding stream that “fuels corruption and prevents law-abiding businesses from investing in the DRC.” Washington’s move is part of a broader effort to stabilise eastern DRC, improve transparency in critical-minerals supply chains and support the DRC-Rwanda peace agreement signed in June. OFAC signalled it may remove names from the sanctions list if behaviour changes, but warned that violations can trigger civil or criminal penalties.