Financial Crime World

Rwanda’s National Bank Issues Regulation on Trust and Company Service Providers

The National Bank of Rwanda (NBR) has introduced a new regulation, effective September 1, 2022, to govern trust and company service providers (TCSPs).

Background

Regulation No. 52/2022 aims to ensure the provision of trust and company services is conducted in a responsible and transparent manner.

Definition of TCSPs

A TCSP is defined as:

  • A sole proprietor or legal person that undertakes various activities, including:
    • Corporate formation
    • Administration of trusts and companies
    • Provision of registered office addresses
    • Resident agency services
    • Trustee services
    • Nominee shareholder services

Licensing Requirements

To be licensed, TCSPs must meet strict criteria set by the NBR, including:

  • Business registration
  • Compliance systems
  • Business plan
  • Management structure
  • Internal policies and procedures
  • Being fit and proper
  • Maintaining a standalone professional indemnity insurance policy

Applications for licensure must include:

  • Proof of payment of a non-refundable application fee
  • Filled application form
  • Certified true copy of registration certificate
  • Proforma of professional indemnity insurance policy
  • Other supporting documents

Moratorium and License Fees

A one-year moratorium is provided for entities that have been providing trust and corporate services prior to the regulation’s entry into force.

After three years from the issuance of the license, TCSPs must pay an annual license fee of one million Rwandan francs (FRW 1,000,000).

Compliance with AML/CFT Laws

Licensees are required to adhere to applicable Anti-Money Laundering and Counter Financing of Terrorism (AML/CFT) laws and regulations.

Quarterly Regulatory Reporting

Quarterly regulatory reporting of financials and other activities is mandatory. The NBR reserves the right to request data or information or conduct inspections as necessary.

Effective Date and Further Information

The regulation came into force on September 19, 2022, and was published in Official Gazette No. 38 Bis. For more details, please visit the National Bank of Rwanda’s website at www.bnr.rw.