Financial Crime World

Rwanda Cracks Down on Money Laundering and Terrorist Financing

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The Rwandan government has introduced new laws aimed at preventing the flow of illicit funds into the country, combating money laundering and terrorist financing.

New Laws and Penalties

  • The new laws make it an offense for anyone to help another person benefit from money laundering or terrorist financing.
  • Those found guilty can face imprisonment for up to 15 years and fines of up to five times the amount of money involved.
  • Terrorist financing is a major concern, with penalties for providing funds or support to known or suspected terrorists.

Measures to Prevent Illicit Funds

  • Cash couriers are required to declare any amounts above 10 million Rwandan francs (approximately $12,000) when transporting cash across borders.
  • Financial institutions and designated non-financial businesses and professions (DNFBPs) must report all suspicious transactions, regardless of amount, to the Centre for Financial Intelligence.

Reporting Suspicious Transactions

  • The centre has established a template for reporting suspicious transactions, which must be submitted within 24 hours.
  • Reports can be submitted electronically or through any other channel determined by the centre.
  • Tipping off, or alerting someone that a suspicious transaction has been filed, is prohibited.

Strengthening the Fight Against Money Laundering and Terrorist Financing

  • The government has introduced measures to identify and report suspicious transactions involving domestic and foreign notes and coins, travellers’ cheques, cash, bearer negotiable instruments (BNIs) and wire transfers.
  • Financial institutions and DNFBPs must maintain all necessary records on transactions for at least 10 years following completion of the transaction.

Broader Effort Against Economic Crime

The Rwandan government has stressed that these new laws are aimed at protecting the country’s financial system and preventing the flow of illicit funds into the country. The measures are part of a broader effort to combat money laundering, terrorist financing, and other forms of economic crime.

  • The Centre for Financial Intelligence has warned the public against tipping off and cautioned individuals and businesses against engaging in suspicious transactions that may be linked to money laundering or terrorist financing.