A Rwandan court has fined a Canadian company $3.5 million for money laundering.

The Intermediate Court at Nyarugenge also ordered the confiscation of properties belonging to ALT5 Sigma Canada Inc and the freezing of its bank accounts.

The prosecution accused ALT5 Sigma and eight individuals of money laundering, claiming that between September 2020 and July 2023, they had opened 52 companies to operate in technology- and telecommunications-related sectors.“However, none of the companies ever conducted the activities they were registered for,” said the prosecution, adding that they also opened bank accounts denominated in various foreign currencies.

According to the prosecution, the accused used these accounts to channel large sums of foreign currency and Rwandan francs, whose origin and purpose could not be justified.

All of the accused denied the charges and said they would appeal the ruling.

Rwanda has recently amended its laws on money laundering, terrorist financing, and the financing of weapons of mass destruction to align with the Eastern and Southern Africa Anti-Money Laundering Group.

Although the country has established a Financial Intelligence Centre and a comprehensive legal framework, it faces challenges in implementing and enforcing these measures across its financial sector.

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