Published on 13/08/2025
U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) imposed sanctions on entities linked to armed group violence and the sale of critical minerals in the Democratic Republic of the Congo (DRC).
Eastern DRC has experienced thousands of civilian deaths and a mass displacement crisis due to ongoing instability, which has been exacerbated recently by the March 23 Movement’s (M23) territorial control and reprisal attacks from DRC-aligned militias. M23, a U.S.- and United Nations-designated armed group, has rapidly expanded its territorial control in eastern DRC and is responsible for human rights abuses.
Today’s sanctions specifically target one of these armed groups involved in illegal mining operations and taxation schemes in Rubaya, an expansive mining area rich in critical minerals used in modern electronics. Additionally, today’s action targets companies in the DRC and China that are engaged in trading conflict-linked minerals from the DRC on international markets, often through Rwanda.
“The conflict minerals trade is exacting a deadly toll on Congolese civilians, fueling corruption, and preventing law-abiding businesses from investing in the DRC,” said Under Secretary of the Treasury for Terrorism and Financial Intelligence John K. Hurley. “The Treasury Department will not hesitate to take action against groups that deny the United States and our allies access to the critical minerals vital for our national defense.”
The United States is focused on securing a resolution to the conflict in eastern DRC, as evidenced by its success in facilitating the DRC-Rwanda peace agreement, signed on June 27, 2025.
The United States continues to support the efforts of the DRC and Rwanda to adopt a regional economic integration framework that expands trade and investment, enhances transparency in critical minerals supply chains, and paves the way for responsible and legal investment in the region.
Minerals supply chains fueling conflict
On July 8, 2024, the U.S. Department of State highlighted concerns with the illicit trade and exploitation of certain minerals that contribute to ongoing instability in eastern DRC. The United States remains concerned about the conflict and humanitarian crisis in eastern DRC, as well as the role that the illicit trade of minerals continues to play in financing the conflict.
In many cases, minerals sourced from eastern DRC are smuggled through Rwanda before being transported to major refining and processing countries, such as China. Minerals sourced from conflict-affected areas directly or indirectly benefit armed groups, who raise funds by selling minerals and imposing illegal “taxation” schemes, often in collusion with corrupt local officials. In addition, the mines controlled by armed groups are linked to a wide range of human rights abuses, such as forced labor, child labor and sexual and gender-based violence.
PARECO-FF: an armed group at the center of the conflict-minerals ecosystem
Coalition des Patriotes Résistants Congolais-Force de Frappe (PARECO-FF) is a successor movement to PARECO, an armed group with a long history of destabilizing activities in eastern DRC. PARECO-FF emerged in 2022 as a response to the resurgence of the OFAC-sanctioned M23 armed group. From 2022 to early 2024, PARECO-FF controlled mining sites in Rubaya, a vast mining area containing critical minerals.
During this period, PARECO-FF generated revenue by overseeing mining operations, collecting illegal fees and taxes from miners, and engaging in minerals smuggling. PARECO-FF also imposed forced labor and executed civilians in mining areas under its control. Since its emergence in 2022, PARECO-FF has advanced its interests by forming opportunistic relationships and competing with other armed groups, including M23, thereby contributing to the armed group politics that drive instability in eastern DRC.
PARECO-FF is being designated pursuant to Executive Order (E.O.) 13413, as amended, for being responsible for or complicit in, or having engaged in, directly or indirectly, actions or policies that threaten the peace, security, or stability of the DRC.
Mining and export companies: connecting conflict minerals to markets
PARECO-FF’s mining operations, illegal taxation schemes, and smuggling activities in Rubaya were aided by the Cooperative des Artisanaux Miniers du Congo (CDMC), a Congolese mining company that operated on the largest mining concession in Rubaya and sold minerals that were sourced and smuggled from PARECO-FF areas of control. CDMC in turn sold minerals to Hong Kong-based export companies East Rise Corporation Limited (East Rise) and Star Dragon Corporation Limited (Star Dragon). The trade of conflict minerals drives insecurity and instability in the DRC by providing a source of funding to armed groups and depriving the DRC government of revenue.
CDMC is being designated pursuant to E.O. 13413, as amended, for being responsible for or complicit in, or having engaged in, directly or indirectly, actions or policies that threaten the peace, security, or stability of the DRC; for being responsible for or complicit in, or having engaged in, directly or indirectly, support to persons, including armed groups, involved in activities that threaten the peace, security, or stability of the DRC or that undermine democratic processes or institutions in the DRC, through the illicit trade in natural resources of the DRC; and for having materially assisted, sponsored, or provided financial, material, logistical, or technological support for, or goods or services in support of, PARECO-FF.
East Rise and Star Dragon are being designated pursuant to E.O. 13413, as amended, for having materially assisted, sponsored, or provided financial, material, logistical, or technological support for, or goods or services in support of, CDMC.
Sanctions implications
As a result of today’s action, all property and interests in property of the designated or blocked persons described above that are in the United States or in the possession or control of U.S. persons are blocked and must be reported to OFAC. In addition, any entities that are owned, directly or indirectly, individually or in the aggregate, 50 percent or more by one or more blocked persons are also blocked. Unless authorized by a general or specific license issued by OFAC, or exempt, OFAC’s regulations generally prohibit all transactions by U.S. persons or within (or transiting) the United States that involve any property or interests in property of blocked persons.
Violations of U.S. sanctions may result in the imposition of civil or criminal penalties on U.S. and foreign persons. OFAC may impose civil penalties for sanctions violations on a strict liability basis. OFAC’s Economic Sanctions Enforcement Guidelines provide more information regarding OFAC’s enforcement of U.S. economic sanctions. In addition, financial institutions and other persons may risk exposure to sanctions for engaging in certain transactions or activities involving designated or otherwise blocked persons. The prohibitions include the making of any contribution or provision of funds, goods, or services by, to, or for the benefit of any designated or blocked person, or the receipt of any contribution or provision of funds, goods, or services from any such person.
The power and integrity of OFAC sanctions derive not only from OFAC’s ability to designate and add persons to the Specially Designated Nationals and Blocked Persons List (SDN List), but also from its willingness to remove persons from the SDN List consistent with the law. The ultimate goal of sanctions is not to punish, but to bring about a positive change in behavior. For information concerning the process for seeking removal from an OFAC list, including the SDN List, or to submit a request, please refer to OFAC’s guidance on Filing a Petition for Removal from an OFAC List
