Rwanda Takes Tough Stance on Financial Crime with New Laws
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Strengthening Financial System and Boosting Confidence
Kigali, March 10, 2020 - The Parliament of Rwanda has recently passed two crucial laws aimed at combating money laundering, terrorism financing, and weapons of mass destruction proliferation. These laws came into effect on February 17 and 24, respectively, and introduce a Financial Intelligence Centre (FIC) and severe penalties for non-compliance with anti-money laundering and counter-terrorism financing regulations.
Establishing the Financial Intelligence Centre
Law No. 74/2019 establishes the FIC as an independent body under the supervision of the Ministry of Finance. The Centre’s key responsibilities include:
- Analyzing suspicious transaction reports
- Issuing regulations and directives to reporting persons
- Providing feedback on current trends in financial crime
- Monitoring financial transactions
- Accessing information from various sources
- Freezing and seizing suspicious assets
- Sharing intelligence with foreign authorities
Introducing Harsher Penalties for Non-Compliance
Law No. 75/2019 repeals a previous anti-money laundering law and introduces harsher penalties for non-compliance, including:
- Imprisonment of up to 25 years
- Fines of up to 20 times the amount involved in illegal activities
Responsibilities of Reporting Persons
The new laws place significant responsibilities on reporting persons, including financial institutions, telecommunications companies, auditors, accountants, tax advisors, real estate agents, and others. These individuals must ensure that their internal policies, guidelines, and training align with the new regulations to prevent contravention.
International Standards Alignment
Rwanda’s anti-money laundering and counter-terrorism financing laws are now aligned with international standards. This makes it essential for reporting persons to comply with the new requirements to strengthen the country’s financial system, increase confidence among stakeholders, and prevent financial crimes that could threaten national security.
In summary, Rwanda has taken a tough stance on financial crime by introducing a Financial Intelligence Centre and harsher penalties for non-compliance. The laws aim to strengthen the country’s financial system, boost confidence, and prevent financial crimes that could threaten national security.