Region

Jurisdiction

Regulator

2023-10-16

AML-CFT General Guidelines 4230/2023-00076 [614] for Regulated Institutions

The Central Bank issues these AML-CFT General Guidelines to establish a comprehensive compliance framework for regulated institutions, mandating a risk-based approach to money laundering, terrorist financing, and proliferation financing. Regulated entities must implement structured governance, designated compliance officers, and standardized customer identification procedures while maintaining continuous transaction monitoring and accurate record retention. The framework further requires regular regulatory reporting, active screening against national and UN security lists, and periodic independent audits to ensure ongoing adherence and effective risk mitigation.

Rwanda

National Bank of Rwanda

i LIST OF ACRONYMS AND ABBREVIATIONS.......................................................... v ............................................................. 1 1.1. Introduction ................................................................................................1 1.2. Interpretation ..............................................................................................2 1.3. Objectives...................................................................................................3 1.4. Scope ..........................................................................................................3 1.5. Applicability...............................................................................................3 1.6. Relationship with Existing Policies ...........................................................4 ...................... 4 2.1. The Meaning of Money Laundering ..........................................................4 2.1.1. Money Laundering Possible Stage.............................................................4 2.2. The Meaning of Terrorist Financing..........................................................4 2.2.1. Understanding of the Terrorism Financing Processes...............................4 2.2.2. Difference between Money Laundering & Terrorism Financing ..............5 2.3. Financing of the Proliferation of Weapons of Mass Destruction ..............6 2.3.1. Assessing Proliferation Financing (PF) risk ..............................................6 2.3.2. Mitigating PF risk.......................................................................................6 2.4. Risks Associated with ML/ FT and the Need for Compliance ..................6 2.4.1. Compliance and Legal Risk .......................................................................6 2.4.2. Operational Risk or Transactional Risk .....................................................7 2.4.3. Reputational Risk .......................................................................................7 2.4.4. Credit and Concentration Risk...................................................................7 2.4.5. Liquidity Risk.............................................................................................7 ...................................................... 7 3.1. The Meaning of Risk Based Approach (RBA)..........................................7 3.2. AML/CTF Risk Assessment Process.........................................................8 3.3. Identifying Specific Risk Categories .........................................................8 3.4. Products and Services Risk ........................................................................9 3.5. Customer Risk............................................................................................9 3.6. Delivery Channel Risk .............................................................................10 3.7. Geographic Location Risk........................................................................11 3.8. Updating the Risk Assessment.................................................................11 3.9. Analysis of Specific Risk Categories.......................................................11 3.10. Group-wide ML/ TF Risk Assessment ....................................................12

ii 3.11. Rating and Ranking..................................................................................13 3.12. Using Assessment of Inherent Risks as the Basis for Risk Mitigants.....13 3.13. Development of the regulated institution’s AML & CTF Programs using the Risk Assessment .............................................................................................13 3.14. Cross Border Correspondent Banking Relationships. .............................14 3.15. Electronic Funds Transfers (EFTs)..........................................................15 3.16. Use of Agents...........................................................................................16 3.17. New and Developing Technologies.........................................................17 3.18. Trade Finance...........................................................................................17 3.19. Politically Exposed Persons (PEPs).........................................................19 ........20 4.1. AML/CTF General Compliance Programme Overview..........................20 4.2. Risk Management Practices.....................................................................21 4.3. Governance...............................................................................................21 4.4. Board of Directors....................................................................................21 4.5. Roles and Responsibilities .......................................................................22 4.6. Senior Management..................................................................................22 4.7. Roles and Responsibilities .......................................................................22 4.8. General Compliance and Management Arrangements............................23 4.9. Employee Screening Procedures..............................................................25 4.10. Employee Training and Awareness Programmes....................................25 4.11. Front-Line Employees..............................................................................25 4.12. Employees that Establish Business Relationships...................................25 4.13. Supervisors and Managers .......................................................................26 4.14. Compliance Officer..................................................................................26 4.15. Account Opening Staff.............................................................................26 4.16. International Trade Services Staff............................................................26 4.17. New Employees........................................................................................26 4.18. Refresher Training....................................................................................26 4.19. Staff Awareness........................................................................................27 4.20. Records of Training Documents ..............................................................27 4.21. Independent Audit Function.....................................................................27 4.22. General Reporting Requirements.............................................................29 4.22.1. On Weekly Basis:..................................................................................29 4.22.2. On Monthly Basis: ................................................................................29 4.22.3. On Quarterly Basis:...............................................................................29 4.22.4. On an annual basis: ...............................................................................29 4.22.5. The Central Bank reserves the right to request any information related to AML/CFT compliance. ....................................................................................29 4.23. Policies and Procedures............................................................................30

iii 4.24. Policies.....................................................................................................30 4.25. Procedures................................................................................................31 CHAP 5: CUSTOMER IDENTIFICATION PROGRAM (CIP) AND CDD .................. 32 5.1. Customer Identification Programme (CIP)..............................................32 5.2. Basic Customer Due Diligence (BCDD) .................................................32 5.3. Enhanced Customer Due Diligence (ECDD)...........................................33 5.4. Simplified Customer Due Diligence (SCDD)..........................................33 5.5. Requirement to Existing Customer..........................................................34 5.6. Reliance on identification and verification already performed ...............34 5.7. Timing of verification ..............................................................................35 CHAP 6: TRANSACTION MONITORING AND RECORD KEEPING AND RETENTION 35 6.1. Transaction Monitoring............................................................................35 6.2. Automated Transaction Monitoring.........................................................36 6.3. Monitoring of Foreign Branches, Subsidiaries and Offices ....................38 6.4. Indicators of Suspicious Transactions......................................................38 6.5. Suspicious Transactions (STR) & Cash Transactions Reports (CTR) ....38 6.6. Record Keeping and Retention ................................................................38 CHAP 7: FINANCIAL SANCTIONS OF TERRORISTS AND TERRORISM FINANCIERS 39 7.1. Data Base of Terrorists and Terrorism Financier ....................................39 7.2. National List.............................................................................................39 7.3. UNSRC Consolidated List .......................................................................39 7.4. Screening and Enhanced Checking..........................................................40 CHAP 8: FINAL PROVISIONS................................................................................. 40 8.1. Compliance with these Guidelines...........................................................40 8.2. Repealing Clause......................................................................................41 8.3. Effective Dates.........................................................................................41 .......................................................................................................... 42 .............................................................. 42 .......................................................................................................... 46 ........................................... 46

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