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A new report calls on the Rwandan government to amend company laws to ensure that Beneficial Ownership (BO) information is up-to-date and easily accessible to competent authorities.
The report takes a closer look at the recently introduced BO provisions, contextualizing Rwanda's framework within the wider international approaches to BO. The report identifies the areas in which the laws fall short and suggests potential improvements that could be made to strengthen the effectiveness of the provisions.
The report co-authored by TJNA’s Policy Associate Everlyn Muendo and Mwaniki Maina a Researcher at the Committee on Fiscal Studies (CFS) at the University of Nairobi (UoN) and an advocate of the High Court of Kenya presents its discoveries and proposals regarding the issue of beneficial ownership in the Kigali International Financial Centre.
The authors identify significant gaps that must be addressed to ensure that the identities of ultimate beneficial owners of companies are disclosed and made publicly available. Failure to do so can facilitate illicit financial flows, corruption, and other forms of financial crime.
The report notes that due to the ease of setting up companies and the rather relaxed regulations in International Financial Centers (IFCs), criminals are attracted to them because they can easily legitimise their illicit transactions by setting up companies that seem like an active and high functioning business.
To address these concerns, the report recommends implementing legislation that requires companies to disclose their beneficial owners, creating a publicly accessible beneficial ownership register, and enhancing the capacity of regulators to verify and monitor beneficial ownership information.
By adopting these propositions, the Kigali International Financial Centre and Rwandan government can create a transparent and accountable financial centre that contributes to sustainable development in Rwanda and the wider East African region.
To access the full report, please visit https://bit.ly/3mZxLpn
For more details on the report, please contact emuendo@taxjusticeafrica.net