Financial Crime World

Rwandan Government Publishes New Regulations on Anti-Money Laundering and Combating the Financing of Terrorism

Introduction

The Rwandan government has published new regulations aimed at preventing money laundering and combating the financing of terrorism. The rules, outlined in the Official Gazette n° 7 of February 24, 2020, introduce various measures to be taken by financial institutions, individuals, and organizations to prevent these illicit activities.

Key Requirements

  • Financial institutions are required to report any suspicious transactions or activities to the competent authority.
  • They must conduct due diligence on their clients and maintain accurate records of all transactions.
  • Bearer negotiable instruments, such as traveler’s checks and negotiable instruments that are endorsed without restriction or made out to a fictitious payee, are considered proceeds of crime.

Definitions

  • Proceeds of Crime: Property or funds derived from or obtained directly or indirectly through the commission of an offence.
  • Money Laundering: The conversion, transfer, or handling of property or funds whose perpetrator knows or is likely to know that such property or funds is the proceeds of crime or derives from an act of participation in such crime.

Authority and Compliance

  • The government has given its authority the power to determine any other activities that may be considered money laundering or terrorist financing.
  • The regulations come into effect immediately, and financial institutions are expected to comply with them by March 31, 2020.

Purpose and Impact

  • The new regulations aim to strengthen Rwanda’s anti-money laundering and combating the financing of terrorism framework, which was previously recognized as one of the strongest in Africa.
  • The rules are designed to prevent illicit activities and ensure that Rwanda’s financial system is transparent and secure.

Call to Action

The government has called on all stakeholders, including financial institutions, individuals, and organizations, to cooperate with the new regulations and report any suspicious activities or transactions to the competent authority.

International Cooperation

Rwanda has been working closely with international partners to strengthen its anti-money laundering and combating the financing of terrorism framework. The country’s commitment to these efforts has been recognized by the Financial Action Task Force (FATF), which removed Rwanda from its list of countries subject to a high-risk rating in 2019.