Rwanda
Regulation on Administrative and Pecuniary Sanctions Applicable to Insurers
Regulation 48 of 2022
- Published in Official Gazette special on 17 June 2022
- Assented to on 2 June 2022
- Commenced on 17 June 2022
- [This is the version of this document from 17 June 2022.]
Chapter One
General provisions
Article One – Purpose
This regulation aims at establishing administrative and pecuniary sanctions applicable to insurers for violations of the law governing the organization of insurance business and its implementing regulations, directives and decisions of the Supervisory Authority.Article 2 – Definitions
In this Regulation, the following terms and expressions shall mean:10°senior manager: management personnel at executive level of the insurer. This includes:d.the Chief Executive Officer (CEO)/Managing Director (MD);e.Senior Executives reporting to the Board or to Board Committees; andf.Senior Executives reporting to the Chief Executive Officer (CEO)/Managing Director (MD).11°director: a member of the board of directors;12°private insurer: a legal entity other than a public insurer licensed by the supervisory authority to carry out insurance business;13°public insurer: public institution authorized by law to carry out insurance business.Chapter II
Corrective and disciplinary measures
Article 3 – Disciplinary measures applicable to an insurer
Where a private insurer fails to comply with the provisions of the Law governing insurance business or its implementing regulations, directives and decisions of the Supervisory Authority, the Supervisory Authority may, depending on the seriousness of the infringement, apply one or many of the following corrective measures:1°written warning;2°permanent or temporary prohibition from conducting certain activities of insurance business;3°suspension of all assistance from the Supervisory authority;4°prohibition from declaring or paying dividends;5°revocation of license;6°any other disciplinary measure that the supervisory authority may deem appropriate.Article 4 – Grounds and effects of revocation of license
The Supervisory Authority may revoke the license granted to a private insurer if:1°it has not commenced insurance business within six (6) months from the date on which the license was granted;2°it has ceased operating for a period of more than one month;3°it has obtained the license through incorrect statements or fraudulent means;4°it no longer meets the applicable licensing criteria;5°the parent company is undergoing liquidation and this may have negative impact on the going concern of the insurance business6°it is involved in money laundering and financing terrorism activities;7°performs activities compromising the soundness of the insurance sector;8°any other conduct that, in the opinion of the supervisory authority, may jeopardize the reputation of the financial sector.Before revoking a license, the Supervisory Authority shall give written notice to the person authorized to engage in insurance business stating the grounds for revoking the license.Where the Supervisory Authority revokes the license of a private insurer, it shall delete this licensee from the Register of Licensed Insurers and take any other appropriate measure.Article 5 – Sanctions applicable to senior managers and directors
The Supervisory Authority may request the suspension or dismissal of a Director or a Senior Manager of a private insurer or public insurer in case it determines that he or she has infringed the Law governing insurance business or its implementing regulations, directives and decisions of the Supervisory Authority.However, the Supervisory Authority reserves the power to suspend or dismiss the Director or a senior manager of a private insurer in case of infringements of Law governing insurance business or its implementing regulations, directives and decisions of the Supervisory Authority.Article 6 – Pecuniary sanctions
Without prejudice to the provisions of Articles 3 and 5 of this regulation, where a private insurer or a public insurer where applicable fails to comply with the provisions of the Law governing insurance business or its implementing regulations instructions, directives and decisions of the Supervisory Authority, relevant sanctions specified in the appendix may apply.Article 7 – Recovery of the amounts related to pecuniary sanctions
The sums related to pecuniary sanctions imposed to an insurer in accordance with this regulation shall, within ten (10) calendar days, be paid on the Supervisory Authority’s account communicated in writing to the infringer in the notification of the applied sanction.The Supervisory Authority may revoke a license of the insurer who fails to comply with the provision of paragraph one of this Article or persists in its infringement.Chapter III
Final provisions
Article 8 – Repealing provisions
Regulation of the National Bank of Rwanda N° 03/2017 of 22/02/2017 on administrative and pecuniary sanctions applicable to insurers and all prior regulatory provisions contrary to this regulation are repealed.Article 9 – Commencement
This regulation comes into force on the date of its publication in the Official Gazette of the Republic of Rwanda.History of this document
17 June 2022 this version
Commenced
02 June 2022
Assented to