Financial Crime World

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Rwanda Enacts Tough Anti-Money Laundering Regulations to Combat Financial Crimes

Kigali, Rwanda - In an effort to strengthen its financial system and prevent money laundering, terrorist financing, and the proliferation of weapons of mass destruction, Rwanda has recently enacted new anti-money laundering regulations.

New Law Replaces Previous Legislation

The regulations replace the previous law and aim to ensure that the country complies with international standards on anti-money laundering (AML) and countering the financing of terrorism (CFT).

Experts Believe Regulations Will Have Significant Impact

According to experts, the new regulations will have a significant impact on Rwanda’s financial system and economy, particularly in its bid to become a Financial Hub under the Kigali International Financial Centre.

10 Key Changes in the Law

Here are 10 key changes in the law that you need to know:

Imprescriptible Offences

  • Money laundering, terrorist financing, and the financing of proliferation of weapons of mass destruction are imprescriptible offences, meaning that they cannot be statute-barred. This means that those found guilty of these crimes can face penalties even after a long period.

Cash Courier Declaration

  • Cash couriers must declare or disclose currency or bearer negotiable instruments of a value equal to or exceeding a pre-set threshold to the competent authority.
  • A legal person (entity) that conducts money laundering, terrorist financing, or the financing of proliferation of weapons of mass destruction will face a fine of 10-20 times the value of proceeds of crime laundered or the value of the financing given.

Extradition

  • The offence of money laundering, terrorist financing, and the financing of proliferation of weapons of mass destruction are extraditable, meaning that suspects can be sent to other countries for trial.

Non-Profit Organisations

  • Non-profit organisations must:
    • Issue annual financial statements with detailed breakdowns of incomes and expenditures
    • Have appropriate controls in place to ensure all funds are fully accounted for
    • Take reasonable measures to verify the identity of significant donors and beneficiaries

Countermeasures for Higher-Risk Countries

  • Reporting persons (financial institutions, advocates, auditors, accountants, or tax advisors) must apply enhanced due diligence to business relationships and transactions with entities in high-risk countries.

Reporting of Suspicious Transactions

  • If a reporting person suspects or has reasonable grounds to suspect that funds or property are the proceeds of crime, related to terrorist financing or terrorism, it must promptly submit a report setting forth the suspicion to the Financial Intelligence Centre.

Penalties for Non-Compliance

  • Regulation of the Financial Intelligence Centre sets sanctions in relation to non-compliance with cash courier declaration and countermeasures for higher-risk countries.

Financial Intelligence Centre Requirements

  • The Financial Intelligence Centre must:
    • Notify and provide advice to reporting persons of concerns about weaknesses in anti-money laundering, countering terrorist financing or the financing of proliferation of weapons of mass destruction systems of other countries

Annual Reporting

  • Non-profit organisations must maintain records of domestic and international transactions for a period of 10 years and make these records available to competent authorities.

These new regulations are aimed at strengthening Rwanda’s financial system and preventing financial crimes, and experts believe that they will have a significant impact on the country’s economy and its bid to become a Financial Hub.