Rwanda: Banking Regulations and Compliance for Fintech Startups Discussed in Fintechub Project Event

Fintech Regulatory Landscape in Rwanda

A recent online event, hosted by the Fintechub project, brought together fintech startups, project partners, and key stakeholders in Rwanda’s financial and digital innovation sectors to discuss banking regulations and compliance. The event took place on March 12, 2021.

Key Takeaways

• The National Bank of Rwanda (BNR) does not have a dedicated regulatory framework for fintech, but instead applies existing regulations covering various banking services.
• Five relevant licenses issued by the BNR that fintech startups should be aware of include:
  • Electronic money issuers
  • Remittance companies
  • Service providers creating payment platforms
  • Payment aggregators
  • Issuance of payment instruments

Regulatory Requirements and Capital Raising

• The capital requirement for each license varies, ranging from 30 million to 200 million francs, depending on the perceived risk associated with each activity.
• Startups do not need to physically deposit the required capital in a bank account but must demonstrate their funding capacity and assure BNR that they can operate their business.

Regulatory Challenges and Recommendations

• Financial risk concerns arise from the increasing number of diverse service providers.
• Uwase recommended that fintech startups engage with regulators as early as possible to ensure compliance with local and global regulations.

Event Highlights

• The event aimed to facilitate discussions between fintech startups, project partners, and key stakeholders in Rwanda’s financial and digital innovation sectors.
• The full video recording of the community event is available online at https://fintechub.rw/.

By attending this event, fintech startups can gain a better understanding of the regulatory landscape in Rwanda and take steps to ensure compliance with local and global regulations.