The long awaited anti-money laundering and combating the financing of terrorism law has been passed by both the Lower and Upper Chambers of Parliament.

Should the President assent to it, then it will become law soon. 

The law comes in when financial experts have expressed fears that money laundering and terrorist financing can threaten financial stability and economic prosperity.

With the law in place, a Financial Intelligence Unit (FIU), a national agency charged with receiving, processing, analyzing and disseminating information relating to suspect financial transactions is also to be formed.

According to experts, the key component of an FIU’s work is to share information about suspicious transactions across borders

Francois Kanimba, Governor Central Bank is reported to have said that anti-money laundering and combating terrorist financing in Rwanda face serious challenges.

He cited some of the challenges as the rapid economic development, advancement of science and technology, frequent international capital movement and continuous financial business innovation.

According to Francois Xavier Rutagengwa, the head of Legal Services in the Central Bank, the law will position Rwanda to be competitive in the East African Community (EAC).

Burundi and Rwanda had no law on anti money laundering and terrorism financing.

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