Types of Financial Crimes on the Rise in Rwanda: New Laws Enacted to Combat Money Laundering, Terrorism Financing, and WMD Proliferation
Rwanda has taken a significant step to strengthen its financial system by passing two key laws aimed at combating money laundering, terrorism financing, and weapons of mass destruction (WMD) proliferation. These new laws are designed to increase confidence in the country’s financial sector and align with international standards.
Establishing a Financial Intelligence Centre
The Parliament of Rwanda passed Law No. 74/2019, which establishes a Financial Intelligence Centre (FIC) as an independent body under the supervision of the Ministry of Finance. The FIC is responsible for conducting financial intelligence to counter money laundering, terrorism financing, WMD proliferation, and related crimes. The centre will work closely with security, judicial, and administrative organs at national, regional, and international levels.
Powers of the Financial Intelligence Centre
The law grants the FIC significant powers, including:
- Monitoring suspicious transactions
- Accessing financial information
- Freezing and seizing property or funds suspected of being involved in illegal activities
- Issuing regulations determining administrative misconduct and related sanctions for reporting persons under its supervision
Preventing and Punishing Financial Crimes
Law No. 75/2019 aims to prevent and punish money laundering, terrorism financing, and WMD proliferation by introducing severe penalties for non-compliance. The law establishes a Coordination Council to coordinate efforts in preventing and combating these crimes and introduces imprisonment of up to 25 years and fines of up to 20 times the amount granted to finance illegal activities.
Requirements for Reporting Persons
The laws require various reporting persons, including:
- Financial institutions
- Telecommunications companies
- Lawyers
- Auditors
- Accountants
- Real estate agents
- Others
to report suspicious transactions and implement internal policies and guidelines to prevent money laundering and terrorist financing.
Expert Opinion
Experts believe that these new laws will significantly enhance Rwanda’s efforts in combating financial crimes and increasing transparency in the country’s financial sector. However, it is crucial for reporting persons to ensure that their internal policies, guidelines, and training align with the new laws to prevent contravention.
By implementing these new laws, Rwanda aims to increase confidence in its financial system and demonstrate its commitment to combatting financial crimes. The effective implementation of these laws will require close cooperation between various stakeholders, including government agencies, financial institutions, and reporting persons.