English
Kinyarwanda
Rwanda National Police (RNP) has reminded the public to refrain from exchange of currencies with unauthorized individuals or dealers.
The call follows the arrest of three illegal money changers in Kamembe Sector of Rusizi District on April 14.
According to the police spokesperson for the western region, Chief Inspector of Police (CIP) Innocent Gasasira the trio are, Pascal Barabara who was found in possession of US$260, Rwf 159, 000 and 800 Congolese francs, the other one is Laurent Sezibera who had US$ 50, Rwf 7,000 and 21,000 Congolese francs.
The third suspect was identified as Elyse Bizimaziki and was found with 142,000 Congolese francs. They are currently held at Kamembe Police station and according to the spokesperson, cases of illegal money changers are very minimal but even the few ones must stop.
He noted that illegal foreign exchange trading include the buying or selling of foreign currency by an individual or company which is not licensed.
Police and the National Bank of Rwanda (BNR) have partnership in fighting illegal money changing. The partnership is geared towards protecting the economy against any adverse effects that may arise from the illegal trade done by the black markets operators.
“Legal and regulatory frameworks have been put in place to regulate the foreign exchange markets. These regulatory frameworks include the penal code, the central bank law and the regulation governing foreign exchange bureaus.
These are clear legal instruments that must be observed. People who have interest in this business should organize themselves and acquire a license from the National Bank of Rwanda and the Rwanda Forex Bureau Association (RFBA) rather that operating on a black market which is criminal,” said CIP Gasasira.
The 2013 regulations governing foreign exchange bureaus stipulates in article 3 that no person shall carry out or purport to carry out a foreign exchange bureau in Rwanda unless he or she is licensed by the Central Bank in accordance with this regulation.
Article 4 of the same instrument indicates that a company or a cooperative intending to apply for a license to operate a foreign exchange bureau shall have a paid up capital not less than Rwf20 million or its equivalent in another currency before commencement of operations which should be maintained at all times.
In reference to the three arrested men, CIP Gasasira noted that, such black market operators are not registered any where and not in formal business; they don’t pay taxes, rent and other required levies; this is why everyone has to stand up against them.”
Article 488 of the penal code states that “any person, who sells or exchanges the national or foreign currency illegally shall be liable to a term of imprisonment of six months to two years and a fine of Rwf200, 000 to Rwf3 million or one of these penalties.”
He put much emphasis on people operating businesses around borders to always avoid selling or buying currencies on a black market.
“Although this is not a rampant issue, we have a mandate of keeping people and their businesses safe. By putting an end to illegal money changers, we are protecting the economy and the general public benefits as well,” he said.
Both Police and BNR conduct periodic awareness campaigns to educate the business community about setting up legitimate and recognized Forex bureaus instead of conducting “black market” Forex activities that cause inflation and other economic challenges.
Such operations may give leeway to the entry of counterfeit money because both the buyer and the seller are usually do it hurriedly to avoid detection.
Economists say such unlawful financial businesses may lead to distortion of foreign exchange market due to speculative transactions; dollarization of the national economy; inflation and reduction of the competitiveness of local products in the international market.
