Rwanda’s parliamentary committee on foreign affairs, cooperation, and security 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 on Wednesday, January 8, seek to align the country’s Financial Intelligence Centre (FIC) with international standards in order 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 categorizes 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 emphasize 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.
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 $3 trillion in illicit funds passed through the global financial system last year. The report cited $782.9 billion in drug trafficking, $346.7 billion in human trafficking, and $11.5 billion in terrorist financing as some of the major contributors to these illicit flows.
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 criminalize 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.