Central Bank Imposes Sanctions on Regulated Institutions for Money Laundering and Terrorist Financing Violations
New Regulations Aimed at Combating Money Laundering and Terrorist Financing in Rwanda
Kigali, Rwanda - The Central Bank of Rwanda has introduced new regulations to combat money laundering and terrorist financing in the country. These regulations aim to strengthen Rwanda’s anti-money laundering and counter-terrorist financing regime by imposing sanctions on regulated institutions that fail to comply with anti-money laundering and counter-terrorist financing laws.
Sanctions for Violations
- Any member of a Board of Directors or senior management who becomes aware of a violation must immediately disclose it to the Central Bank. Failure to do so can result in sanctions imposed by the Central Bank.
- Pecuniary sanctions against regulated institutions that violate anti-money laundering and counter-terrorist financing laws can include fines, suspension, or revocation of licenses.
Appeal Process
Regulated institutions can appeal any sanction imposed on them within seven working days. The decision of the Central Bank is final.
Disclosure of Violations
In addition to imposing sanctions, the Central Bank may also disclose violations committed by regulated institutions through publication on its official website.
Key Provisions of the Regulations
- Regulated institutions must report any violation of anti-money laundering and counter-terrorist financing laws to the Central Bank.
- Failure to report a violation can result in sanctions imposed by the Central Bank.
- Pecuniary sanctions can be imposed on regulated institutions that violate anti-money laundering and counter-terrorist financing laws.
- Regulated institutions can appeal any sanction imposed on them within seven working days.
- The decision of the Central Bank is final.
Impact of the Regulations
The new regulations are expected to have a significant impact on Rwanda’s financial sector, strengthening its anti-money laundering and counter-terrorist financing regime. The regulations will help to ensure that regulated institutions comply with anti-money laundering and counter-terrorist financing laws, reducing the risk of money laundering and terrorist financing in the country.
Benefits of the Regulations
- Greater transparency and accountability in the financial sector
- Better monitoring and supervision of regulated institutions
- Maintenance of public confidence in the financial system
- Ensuring Rwanda remains a safe and secure place for businesses and individuals to operate.