Rwanda Steps Up Fight Against Financial Crimes with New Laws
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Kigali, Rwanda - In a bid to strengthen and increase confidence in its financial system, the Parliament of Rwanda has recently passed two key laws aimed at combating money laundering, terrorism financing, and the proliferation of weapons of mass destruction (WMDs).
Establishing the Financial Intelligence Centre (FIC)
On February 17 this year, Law No. 74/2019 establishing the FIC came into effect, replacing all prior legal provisions inconsistent with it. The FIC is an independent body under the supervision of the Ministry of Finance, responsible for conducting financial intelligence to counter money laundering, terrorism financing, and WMDs proliferation.
Key Responsibilities
- Analyzing suspicious transaction reports
- Issuing regulations and directives to reporting persons
- Providing feedback on current techniques, methods, and trends in money laundering and related crimes
- Monitoring financial transactions
- Accessing information
- Freezing and seizing suspicious property or funds
- Providing or exchanging information with foreign authorities
Prevention and Punishment of Money Laundering, Financing of Terrorism, and Financing of Proliferation of WMDs
On February 24 this year, Law No. 75/2019 came into effect, repealing Law No. 69/2018 and all prior legal provisions contrary to it. The law establishes a Coordination Council to prevent and counter money laundering, terrorism financing, and WMDs proliferation.
Key Provisions
- Introduces severe penalties for non-compliance, including imprisonment of up to 25 years and fines of up to 20 times the amount granted to finance illegal activities
- Establishes a Coordination Council to prevent and counter money laundering, terrorism financing, and WMDs proliferation
Compliance Requirements
It is essential that reporting persons ensure their internal policies, guidelines, and training align with the new laws in order to prevent contravention. The laws aim to bring Rwanda’s anti-money laundering and counter-terrorism financing regulations closer in line with international standards.
Reporting Persons Affected
- Financial institutions
- Telecommunications companies providing financial services
- Lawyers
- Auditors
- Accountants
- Tax advisors
- Real estate agents
- Dealers in precious stones and metals
- Money distributors
- Casinos
- National lotteries
- Non-governmental organizations
- Trusts
- Others that may be determined by an Order of the Minister