At an extra-ordinary cabinet meeting last week, the structure of the newly created Financial Intelligence Centre was approved. At the same meeting, the partnership law was approved and awaits to be gazetted. A few weeks back, Rwanda amended its anti-money laundering and counter-terrorist financing law and regulations. These are some of the recent laws and regulations that have been approved in recent months governing local and international investments. Rwanda’s latest move to adjust the laws and regulation with regard to economic crimes is not a response to an increase in occurrence of economic-related crimes in the country but rather a step to improve confidence in the ecosystem for investment. The laws and regulation come at a time when investors (individual and institutional) are increasingly concerned about malpractices on the global scene including some that have led to the blacklisting of countries by regulators. Beyond curbing economic-related crimes and having relevant laws to enforce, the said laws will have a greater impact on improving the investment eco-system especially with regard to foreign capital. Consequently, it will serve to keep away fraudulent operators disguised as well-meaning investors. The laws should also serve as an indicator of the profile and nature of investors sought by the country. While there is a scarcity for capital globally, it doesn’t mean that the country is willing to ignore values, ethics and proper business practices by accommodating those with shady dealings. At a time when there is reduced capital flow across the world as a result of the COVID-19 pandemic, scrutiny of potential destinations has grown beyond return on investment. This is because there continues to be proliferation of new and complex economic crimes including some that are not considered criminal in multiple jurisdictions across the world. As Rwanda signs pacts with CDC Group, the UK’s development finance institution and impact investor and Casablanca Finance City (CFC) to promote the Kigali International Finance Centre, fund managers from the said markets are often curious on compliance to the latest international standards.
