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, an improvement from 54th in 2022. The government prioritizes anti-corruption efforts, investigating allegations and prosecuting high-ranking officials when necessary, which has attracted U.S. investors. However, some investors have reported corruption at lower administrative levels, particularly involving customs and tax officials, highlighting the need for better local resources to vet investment partners.

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 7.6% in early 2023. The government has implemented extensive business reforms to enhance the investment climate, including the establishment of the Kigali International Financial Centre and various incentives to attract foreign investment, despite challenges such as high transport costs and limited access to affordable financing.

Rwanda has made significant strides in improving its investment climate through comprehensive business reforms, which have streamlined procedures and enhanced the ease of doing business. The government has introduced various incentives to attract foreign investment, such as the Manufacture and Build to Recover Program and the Kigali International Financial Centre, aiming to position Rwanda as a regional economic hub. However, foreign investors still face challenges, including complex tax administration, high operational costs due to the landlocked geography, and issues with contract enforcement, which can hinder their ability to sustain profitable ventures.