Rwanda Country Summary

FATF Status

Rwanda is not on the FATF List of Countries that have been identified as having strategic AML deficiencies

Compliance with FATF Recommendations

The latest Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Rwanda was undertaken in 2024. According to the follow-up Evaluation, Rwanda was deemed Compliant for 5 and Largely Compliant for 14 of the FATF 40 Recommendations. It was assessed Highly effective for 0 and Substantially Effective 0 of the Effectiveness ratings.

Rwanda is recognized as one of the least corrupt countries in Africa, ranking 49th globally in Transparency International's 2023 Corruption Perception Index, thanks to the government's strong anti-corruption initiatives. While high-ranking officials are often held accountable for corruption, reports indicate that lower-level corruption persists, particularly in customs and tax administration. The country also faces challenges related to human trafficking, illicit trade, and financial crimes, but maintains a stable governance structure and has made strides in victim support and crime prevention.

Rwanda's economy has shown significant resilience and growth, recovering from a contraction during the COVID-19 pandemic, with GDP growth rates of 8.2% in 2022 and an estimated 7.6% in the first three quarters of 2023. The government has implemented extensive reforms to enhance the business environment, including the establishment of the Rwanda Development Board to streamline investment processes, although challenges such as high transport costs, limited access to financing, and bureaucratic hurdles continue to affect foreign investors.

Rwanda has made significant strides in improving its investment climate through comprehensive business reforms, including streamlined procedures for starting businesses and enhanced regulatory processes. The government has established initiatives like the Kigali International Financial Centre and the Manufacture and Build to Recover Program to attract foreign investment and position Rwanda as a regional economic hub. However, foreign investors face challenges such as complex tax administration, high operational costs due to the landlocked geography, and competition from state-owned enterprises.