Financial Crime World

Rwanda’s Dark Economy: Tax Evasion Topping Financial Crimes, Costing Billions

According to a report from the Financial Intelligence Centre (FIC) in Rwanda, tax evasion has become the most significant financial loss for the country, with over Rwf20bn siphoned off in the last five years. This alarming figure surpasses other financial crimes, including corruption and money laundering.

##tax-evasion-leading-financial-crimes

  • Tax Evasion: Over Rwf20bn lost in the last five years
  • Significant impact on the national economy

Despite corruption being the most prevalent financial crime in terms of cases, with 1,076 instances recorded, tax evasion poses a much more significant financial threat.

##financial-crimes-in-rwanda ###Corruption

  • Over 1,000 instances recorded
  • Least financial impact among financial crimes

###Money Laundering

  • Serves as foundation for other financial crimes
  • Need to ‘clean’ ill-gotten gains

##combatting-financial-crimes The Financial Intelligence Centre (FIC), an entity under the National Bank of Rwanda, plays a crucial role in ensuring financial institutions comply with regulations and enforcement of financial laws.

##the-role-of-fic

  • Mandate includes entire financial spectrum

The Revenue Investigation Enforcement department within the Rwanda Revenue Authority is working closely with Rwanda National Police and Rwanda Investigation Bureau to tackle financial crimes. Their mission is to pursue those involved in such activities.

##combatting-financial-crimes-collaboratively

  • Working with the public
  • $200,000 aid from Japan International Cooperation Agency (JICA)

Jean Marie Nyirurugo, the Head of Monitoring and Analysis Department at the FIC, warned that money laundering often serves as the foundation for other financial crimes. Thus, the need to address it is crucial. Additionally, he highlighted the role technology plays in financial crime management.

##technology-in-financial-crime-management

  • Advanced systems for improved efficiency

Bernard Nsegiyumva, in charge of developing financial sector laws and regulations at the National Bank of Rwanda, emphasised the need for a fresh approach towards handling financial crime and regulatory compliance.

##approach-towards-financial-crime

  • Fresh approach required
  • Applying advanced analytics

Financial crimes pose a significant hurdle to Rwanda’s growth and development. Fighting these illicit activities is a collaborative effort that requires the involvement of all stakeholders — financial institutions, law enforcement agencies, and the public.

##collaboration-to-combat-financial-crimes

  • Increased vigilance and relentless determination
  • Overcoming the darkest corners of the economy