The parliament has passed a new legislation aimed at strengthening measures to prevent money laundering, terrorism financing, and the proliferation of weapons of mass destruction. ALSO READ: Rwanda sets up Financial Intelligence Centre, boosting money laundering fight Introduced for MPs' discussion on Wednesday, January 8 and passed on Thursday, January 9, the bill focuses on aligning Rwanda's Financial Intelligence Centre (FIC) with international standards to better address these complex and evolving crimes. Speaking about the legislation, Hope Tumukunde Gasatura, the chairperson of the parliamentary committee on foreign affairs, cooperation, and security, said the new provisions categorise various forms of money laundering and introduce stricter measures for conducting due diligence for financial clients. The new amendments will specify more acts that amount to terrorism financing, which are not in the current law. The new changes also emphasize the need for financial institutions to cooperate with authorities by responding promptly to information requests regarding suspicious funds or assets. ALSO READ: Rwanda rolls out new anti-terrorist financing measures As part of the new changes, bailiffs handling services related to technological property have been added to the list of informants required to report suspicious activities. Financial crime has become a concern in the world. According to a report by Verafin Inc., a fraud detection technology and anti-money laundering software subsidiary of Nasdaq, Inc., more than $3 trillion in illicit funds flowed through the global financial system in 2023. Among the most prevalent crimes that fuelled the illicit flows and money laundering endemic were an estimated: $782.9 billion in drug trafficking activity, $346.7 billion in human trafficking, and $11.5 billion in terrorist financing. ALSO READ: RIB refutes injustice claim in $10m I&M Bank fraud case Rwanda’s proposed new law also extends the confiscation period for assets by FIC from three days to 30 days, allowing for more thorough preparatory investigations. Moreover, it criminalises attempts to lead or contribute to terrorist activities as well as efforts to hide or modify the origins of illicit property or assist criminals in evading justice. It also requires increased transparency on beneficial company ownership information to avoid scenarios where people can steal or embezzle money and try to launder it through companies.
