New Law Strengthens Fight Against Financial Crimes, Ensures Justice

Kigali, Rwanda

The government has introduced the Financial Crime Act (FCA), aimed at strengthening efforts to combat financial crimes and ensure justice is served. The new law introduces several key provisions designed to disrupt the flow of tainted assets and bring criminals to account.

Mandatory Confiscation of Tainted Property

One of the most significant changes is the mandatory confiscation of tainted property, which is now an obligatory process for courts to impose as a penalty in sentencing convicted financial criminals. This provision ensures that criminal assets are seized and removed from circulation, reducing the incentive for crime and strengthening efforts to combat money laundering and other financial crimes.

Clarification on Confiscation Orders

The FCA clarifies that confiscation orders are made against tainted property, rather than individuals. This means that the process is focused on removing the tainted asset from circulation, rather than punishing the individual involved.

Mandatory Approach to Confiscation and Pecuniary Penalties

In a significant departure from previous legislation, the new law introduces a mandatory approach to confiscation and pecuniary penalties. Unlike the previous law, which gave prosecutors discretion to pursue these measures, the FCA requires courts to impose these penalties as part of the sentencing process.

International Best Practices

This approach is in line with international best practices, as evidenced by case law from jurisdictions such as the United States and Seychelles. The Rwandan government’s commitment to strengthening its anti-money laundering and combating the financing of terrorism (AML/CFT) regime is a significant step forward in the fight against financial crimes.

Protecting the Integrity of the Financial System

The FCA demonstrates the government’s determination to protect the integrity of the financial system and ensure that those who engage in criminal activity are held accountable. The new law will undoubtedly contribute to a safer, more secure financial environment for all Rwandans.

By introducing this new law, the Rwandan government is sending a strong message that it is committed to combating financial crimes and ensuring justice is served. The FCA will play a crucial role in disrupting the flow of tainted assets and bringing criminals to account, ultimately contributing to a safer and more secure financial environment for all.