Financial Intelligence Unit Issues New Guidelines on Money Laundering Reporting

Strengthening the Fight Against Money Laundering and Terrorist Financing

Kigali, Rwanda - The Financial Intelligence Unit (FIU) has issued new guidelines on money laundering reporting to all banking institutions in the country. These guidelines aim to strengthen the fight against money laundering and terrorist financing by providing a framework for banks to detect and report suspicious transactions.

Training Requirements

The guidelines emphasize the importance of training for all banking institution staff, including:

• All new employees dealing with customers or transactions must receive training on money laundering reporting within the first month of employment.
• Front-line staff, such as cashiers, foreign exchange operators, and advisory staff, must be trained on factors that may give rise to suspicions and procedures to adopt when a transaction is deemed suspicious.
• Account opening personnel must receive training on verifying customers’ identities, customer/client verification procedures, and the institution’s suspicious transaction reporting procedures.

Identifying Suspicious Transactions

The guidelines provide examples of suspicious transactions that may indicate money laundering activities, including:

• Unusually large cash deposits made by an individual or company without apparent cause
• Substantial increases in cash deposits without explanation
• Customers who deposit cash using numerous credit slips to avoid detection
• Companies whose transactions are denominated in cash rather than cheques, letters of credit, and other instruments
• Customers who constantly pay-in or deposit cash to cover requests for bankers’ drafts, money transfers, or other negotiable instruments

Confidentiality and Feedback

The guidelines prohibit banking institutions, their directors, officers, and employees from disclosing to customers that a suspicious transaction report has been made to the FIU. The Financial Intelligence Unit is responsible for receiving and analyzing reports of suspicious transactions and providing feedback to reporting persons.

Implementation and Feedback

The guidelines will take effect on April 1, 2009, and banking institutions are encouraged to provide feedback and suggestions to the FIU. By implementing these guidelines, banking institutions can help prevent the misuse of financial systems and resources for illegal activities.