Rwanda: Tighter Anti-Money Laundering Bill Draft in Parliament

January 16, 2025

(3 Months Read)

Rwanda has introduced a draft law aimed at strengthening measures to combat money laundering, terrorism financing, and the proliferation of weapons of mass destruction.

Rwanda has introduced a draft law aimed at strengthening measures to combat money laundering, terrorism financing, and the proliferation of weapons of mass destruction. The proposed amendments, presented for discussion, seek to align the country’s Financial Intelligence Centre (FIC) with international standards to better tackle these evolving crimes.

Hope Tumukunde Gasatura, chairperson of the committee, said the draft law introduces stricter provisions for conducting due diligence on financial clients and categorises various forms of money laundering more precisely. The amendments also specify additional actions that would qualify as terrorism financing, which are not covered under the current law.

The changes emphasise the importance of financial institutions cooperating with authorities by responding promptly to information requests regarding suspicious funds or assets. Additionally, bailiffs who handle services related to technological property will now be required to report suspicious activities, joining a broader group of informants.

Rwanda’s proposed law also extends the period for asset confiscation by the FIC from three days to 30 days, allowing for more comprehensive investigations. The amendments criminalise attempts to lead or contribute to terrorist activities and efforts to conceal or alter the origins of illicit property. Additionally, the law targets those who assist criminals in evading justice.

The draft legislation requires greater transparency regarding the beneficial ownership of companies, aiming to prevent individuals from using corporate structures to launder stolen or embezzled funds.

Financial crime continues to be a global concern. A 2023 report by Verafin Inc., a subsidiary of Nasdaq Inc. focused on fraud detection and anti-money laundering software, estimated that over USD 3 trillion in illicit funds passed through the global financial system last year. The report cited USD 782.9 billion in drug trafficking, USD 346.7 billion in human trafficking, and USD 11.5 billion in terrorist financing as some of the major contributors to these illicit flows.