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Compliance in Finance Industry in Rwanda: Experts Weigh In
A recent discussion on fintech regulation in Rwanda brought together key stakeholders to explore how startups can navigate regulatory compliance in the country’s financial and digital innovation sectors.
Event Overview
The event, held under the Fintechub project, was organized by UNCDF in partnership with the Government of Rwanda, ICT Chamber, and Kigali Innovation City. Peace M. Uwase, Executive Director of Financial Stability at the National Bank of Rwanda (BNR), was among the panelists who engaged in a conversation with fintech startups, project partners, and other industry experts.
Regulatory Framework for Fintech
According to Uwase, BNR does not have a dedicated regulatory framework for fintech. Existing regulations cover banking services, deposit taking, insurance, pensions, payment services, among others. Most fintech startups in Rwanda operate in the payment space, and BNR issues five relevant licenses:
- Electronic money issuers
- Remittance companies
- Service providers
- Payment aggregators
- Issuance of payment instruments
Capital Requirements
The capital requirement for these licenses varies, ranging from 30 million to 200 million Rwandan francs. Uwase explained that the capital requirements are based on BNR’s assessment of perceived risk, with higher requirements for companies that collect and sit with funds. However, startups do not need to raise and deposit capital in a bank account; instead, they only need to demonstrate funding and assure BNR that they can operate their business.
Challenges from a Regulatory Perspective
During the Q&A session, Uwase highlighted challenges from a regulatory perspective, including financial risk as a top concern. She recommended that fintech startups engage with regulators early on, given the highly regulated nature of financial services both locally and globally.
Conclusion
The event aimed to provide insights into regulatory compliance for fintech startups in Rwanda and promote collaboration between the government, private sector, and innovators. The Fintechub project aims to foster a conducive environment for innovation and entrepreneurship in Rwanda’s fintech industry.