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 actively pursues anti-corruption measures, with high-ranking officials often resigning during investigations and facing prosecution. However, some investors have reported corruption at lower administrative levels, particularly involving customs, tax, and police officials, highlighting a mixed landscape of corruption perception in the country.

Rwanda's economy has shown significant resilience and growth, recovering from a contraction during the COVID-19 pandemic with an estimated GDP growth of 8.2 percent in 2022 and 7.6 percent in early 2023. The government has implemented extensive reforms to enhance the business environment, including the establishment of the Rwanda Development Board to streamline investment processes and a commitment to sustainable economic practices, such as promoting electric mobility. However, challenges remain, including high transport costs due to the landlocked geography, complex tax administration, and limited access to affordable financing, which hinder foreign investment and business operations.

Rwanda has made significant strides in improving its investment climate through comprehensive business reforms that simplify regulatory processes and enhance the ease of doing business. The government has established initiatives like the Kigali International Financial Centre and the Manufacture and Build to Recover Program to attract foreign investment and stimulate economic growth. However, foreign investors still face challenges such as complex tax administration, high transport costs due to the country's landlocked geography, and issues related to access to affordable financing.