Do You Wish To Start Up A Bank? Obtain A Licence In The Rwandan Banking Sector? Here Is A Brief Stabit Advocates’ Guide On Some Of The Key Facts You Need To Know.

DO YOU WISH TO START UP A BANK?

OBTAIN A LICENCE IN THE RWANDAN BANKING SECTOR WITH ONE OF THE BEST LAWYERS IN RWANDA? HERE IS A BRIEF STABIT ADVOCATES’ GUIDE ON SOME OF THE KEY FACTS YOU NEED TO KNOW.

Rwanda’s banking sector continues to grow by the day. This growth is rooted on the fact that it is rear to encounter cases of fraud, money laundering and other financial crimes in the Rwandan Banking sector primarily due to the fact that the existing banks abide by the existing laws and are keen to endeavor that their customers do not engage in financial crimes such as money laundering and the like.

For example in all banks in Rwanda, it is not possible to open a company bank account without a notarized Board Resolution from the Company. In addition, the signatory to the bank account must be present at the time of opening the bank account or alternatively issue a Power of Attorney in his or her absence to that effect. In order for one to operate banking services in Rwanda, one can either choose to apply for a licence to operate a commercial bank or a licence to operate a micro finance institution depending on the applicant’s choice and capacity because the minimum amount required to open a bank is higher than the minimum amount required to operate a micro finance institution.

The major requirements for application of a commercial bank licence include but are not limited to the following;

1. an information sheet for the applicant and for each of its significant shareholders (if corporate), subsidiaries or affiliates
2. a personal declaration from each of the proposed significant shareholders (if natural person), directors and senior managers
3. individual credit report for the applicant and each of the significant shareholders, proposed directors and senior managers from a licensed credit bureau
4. a proposed capital structure
5. a business plan
6. the certificate of incorporation as a public limited company, the memorandum and Articles of Association for a company and the certificate of registration, statutes and internal rules for a cooperative.
7. Certified copies of audited financial statements for the past three years and prepared in accordance with generally accepted accounting principles for the existing financial institutions and companies have been engaged in other businesses before applying to conduct the banking activity.
8. A certified copy of the resolution of the Board of Directors or shareholders authorizing the preparation and submission of the application.
9. Proof of payment of non-refundable application fees

The major requirements for application of a License to operate Microfinance Institution include but are not limited to the following;

Applicants must submit complete licensing applications to the Governor of the Central Bank that include but are not limited to the following documents;

1. An application for licensing, specifying in particular the purpose of the micro finance institution and its objectives;
2. A business plan
3. Proof that the enterprise is a legal person in accordance with current laws
4. A list of persons who will be in charge of administration and management of the micro finance institution and their curriculum vitae with a copy of their police records
5. Proof of payment of licensing fees
6. Proof of capital for a micro finance institution
7. The amount of the subscribed capital and the amount of the paid up capital for each shareholder as well as recent balance sheet of every legal entity holding 10% and more than capital.

At Stabit Advocates, we have a team of professionals who are ready to assist you 24/7 with any licence application in the banking sector you might need. Feel free to contact us using the contact details below.

Drafted and Drawn by;

Stabit  Advocates Rwanda

Email: info@stabitadvocates.com

Tel: +250789366274

Website: www.stabitadvocates.com

The Best Law Firm in Kigali, Rwanda