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					Rwanda - Draft Credit Bureau Law                                   September29, 2009


                                                                         ( Draft - 29Sept 2009)



                           Banque Nationale du Rwanda
                            National Bank of Rwanda


LAW N_ …/… OF …/…/2009 GOVERNING THE ESTABLISHMENT AND THE
ORGANIZATION OF A CREDIT INFORMATION SYSTEM IN RWANDA

We, KAGAME Paul,
President of the Republic;

THE PARLIAMENT HAS ADOPTED, AND WE SANCTION, PROMULGATE
THE FOLLOWING LAW AND ORDER IT TO BE PUBLISHED IN THE
OFFICIAL GAZETTE OF THE REPUBLIC OF RWANDA.


THE PARLIAMENT:


The Chambers of Deputies, in its session of ……. 2009;


Pursuant to the Constitution of the Republic of Rwanda of 04 June 2003, as amended to
date, especially in Articles 62, 66, 67, 90, 92, 93, 108, 118, and 201;


Pursuant to Law n_ 55/2007 of 30/11/2007 governing the Central Bank of Rwanda,
especially in Articles 5, 6, 53, 56 and 57;


Pursuant to Law n_ 007/2008 of 08/04/2008 concerning organization of Banking
especially in Articles 1, 27 and 59;


Pursuant to Law n_ 40/2008 of 26/08/2008 establishing the organization of Micro
Finance activities, especially in Articles 2, 3, 4, 5, 6, and 7;




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Pursuant to Law n_ 50/2007 of 18/09/2007 providing for the Establishment, Organization
and Functioning of Cooperative Organizations in Rwanda;


Pursuant to Law n_ 12.2009 of 26/05/2009 relating to commercial recovery and settling
of issues arising from insolvency;


Pursuant to Law n_ 52/2008 of 10/09/2008 concerning the organization of insurance
business, especially in its Article 2;


ADOPTS:


CHAPTER I: GENERAL PROVISIONS


Article one: Definitions of terms and expressions


Terms and expressions used in this Law have the following meanings:


1. “Banking Law” means the Law concerning the Organization of Banking;


2. “Central Bank Law” means the Law governing the Central Bank of Rwanda;


3.   “consent” means the customer and/or guarantor’s authorization to allow (i) a subscriber to
request a credit bureau report, and subsequent use as detailed in Article 25 of this Law;


4. “contingent obligations” includes obligations that are contingent upon the occurrence of an
event and include guarantees and other credit enhancing instruments issued by a person in favor
of another person;


5. “credit agreement” means direct, indirect and contingent obligations incurred by a person
with a third party and includes any loan, the payment for good or services over time, discount
advance overdraft, export bills purchased, other bills receivable or purchased, import bills,




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customers’ liability on off-balance sheet items or any other credit facilities extended to a
customer of an institution;


6. “credit bureau” means a company properly organized and registered under the laws of
Rwanda, and licensed by the Central Bank to engage in the credit bureau activities, as more
specifically defined in Article 10 of this Law;


7. “credit bureau report” means a written, oral or other communication to a subscriber made by
a credit bureau which contains a full or partial disclosure of information contained in the credit
bureau’s database;


8. “credit information” means information concerning a customer’s identification and credit
history, as more specifically defined in Article 18 of this Law;


9. “credit scoring” means the service of providing a numerical value, based on a statistical
analysis of a borrower’s credit file, to represent the credit worthiness of that borrower;


10. “customer” means a person with respect to whom a file is created by a credit bureau;


11. “customer information” means data on customers and/or guarantors in electronic and/or
paper form that is collected, collated, stored, disseminated and otherwise handled by a credit
bureau;


12. “database” means a set of information administered by a credit bureau;


13. “data provider” means (i) a person that submits customer information to a credit bureau,
pursuant to the terms of a valid data submission agreement, and (ii) other sources of information
as detailed in Article 19 of this Law;


14. “Data Standardization Manual” means the list of information which data providers shall
collect and submit to a credit bureau, as determined by the Central Bank from time to time;




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15. “data submission agreement” means the agreement between a credit bureau and a data
provider that sets forth the modalities for the submission of customer information as well as other
material terms of the arrangement;


16. “mandatory participants” means persons who are required to serve as data providers and
subscribers, and include:
        a. “banks” and “financial institutions” as those terms are defined in the Banking Law that
            extend credit or otherwise engage in lending;
        b. “microfinance institutions” of the third and fourth categories, as defined in the Law
            governing the Organization of Micro Finance activities; and,
        c. “insurance companies” as defined in the Law governing the Organization of
            Insurance Business;


17. “participants” means both mandatory participants and voluntary participants and includes
both data providers and subscribers;


18. “permissible purpose” means those purposes set forth in Article 27 of this Law;


19. “person” means a natural and legal person;


20. “subscriber” means a person that is a party to a subscription agreement and is otherwise
eligible to access credit bureau reports;


21. “subscription agreement” means an agreement between a credit bureau and a subscriber
that sets forth the modalities for requesting a credit bureau report, as well as other material terms
of the arrangement.


22. “voluntary participant” means a person who serves as either as a data provider, subscriber
or both, on a voluntary basis.


Article 2: Purpose




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This Law serves to govern the establishment, organization and functioning of a credit information
system, to establish the conditions for credit reporting and to provide for related matters in the
Republic of Rwanda.


The establishment of a credit information system will: (i) enable lenders and other data providers
to share customer identifying and account data, and relevant sources of publicly available data in
a centralized manner; (ii) allow subscribers access to that shared information to make informed
decisions about the allocation of credit, risk or related activities; and (iii) reduce the probability of
default, thus strengthening the financial services sector in Rwanda.


CHAPTER II: ROLE OF THE CENTRAL BANK


Article 3: Supervisory and regulatory role of the Central Bank


The Central Bank shall have overall supervisory and regulatory authority with respect to the
credit information system in Rwanda.


Without limitation to the forgoing, the Central Bank has the authority to:
        (a)      issue and revoke credit bureau licenses;
        (b)      supervise the activities of the credit bureaus, participants, and their agents;
        (c)      maintain proper standards of conduct and acceptable credit information reporting
                 practices;
        (d)      send written instructions to credit bureaus and participants, both individually and
                 collectively, directing them to correct any identified violation of this Law or the
                 regulations;
        (e)      enact additional regulations and rules for credit bureaus and participants under
                 this Law;
        (f)      take measures to protect the interests of customers;
        (g)      impose penalties for contravention of this Law, the regulations and instructions;
        (h)      require the submission of reports and other information to the Central Bank;
        (i)      conduct inspections and technical audits;
        (j)      review and approve operating procedures, data integrity, and fee structures, as it
                 deems appropriate; and,




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        (k)      perform such other functions as specified in this Law or otherwise deemed
                 necessary to further the effectiveness of the credit information system in Rwanda.


Article 4: Cross border information sharing


The Central Bank shall have the authority to approve the sharing of customer information beyond
the borders of Rwanda, specifically with respect to other member nations of the East African
Community, subject to the terms and conditions of a Memorandum of Understanding between the
Central Bank and the other credit bureau licensing authority of the other country.


CHAPTER III: LICENSING


Article 5: License requirement


No person shall establish or operate a credit bureau in Rwanda, or otherwise hold himself out to
the public as engaging in the credit bureau business, without a license from the Central Bank.


Article 6: Licensing application


The Central Bank shall, by Instruction, specify the detailed procedures to be followed to obtain a
license, as well as the information to be included and documents required to accompany the
license application.


Article 7: Criteria for license


In considering an application for a credit bureau license, the Central Bank shall satisfy itself that
the applicant:
        (a)      is properly incorporated as a company under the Law relating to Companies,
                 solely to engage in the credit bureau activities;
        (b)      has sufficient transparency in the ownership structure of the company;
        (c)      is owned and managed by individuals who possess good business standing,
                 integrity, and financial strength;
        (d)      has human, financial and operational resources that will enable it to function
                 efficiently and perform its functions effectively;



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        (e)      has internal control systems, information technology systems, policies and
                 procedures, which are adequate for the nature and scale of proposed business
                 operations;
        (f)      has a satisfactory business plan;
        (g)      has adequate plans to adopt mechanisms to gather input, integrate, update,
                 validate and provide security for data;
        (h)      has a creditable plan to develop and adopt procedures to ensure that questions,
                 concerns and complaints of customers, data providers and/or subscribers are
                 treated equitably and consistently in a timely and efficient manner; and
        (i)      would serve the public interest by receiving the license.


Article 8: Capital requirements


The Central Bank shall, by regulation, specify the amount of paid-up capital that a credit bureau
is required to have, as well as the acceptable investments for such capital.


Article 9: Revocation or suspension of license


The Central Bank may revoke or suspend a license granted to a credit bureau at any time if the
credit bureau:
        (a)      has not commenced operations within 12 months of the date on which the license
                 was granted;
        (b)      has ceased operating for a period of more than one month;
        (c)      has obtained the license through incorrect statements or other fraudulent means;
        (d)      makes a written request to have the license revoked;
        (e)      no longer meets the applicable licensing criteria;
        (f)        is found to be in violation of any law or in material breach of any regulation
                 which affects its solvency, the effectiveness of its operations or the public trust;
                 and/or,
        (g)      is convicted of a crime.


The Central Bank shall immediately notify the credit bureau of any decision to withdraw or
suspend the license, and the credit bureau shall promptly take all steps necessary to transfer the
database to the Central Bank in accordance with Article 37 of this Law.



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CHAPTER IV: CREDIT BUREAUS


Article 10: Permissible activities of credit bureaus


A credit bureau may engage in the following activities:
        (a)      the collection, collation, storage, management, evaluation, updating, and
                 dissemination of customer information as provided by this Law;
        (b)      the provision of other services including, but not limited to:
                 (i)     credit scoring;
                 (ii)    credit application processing;
                 (iii)   default notice or “watch services”;
                 (iv)    statistical research;
                 (v)     debtor tracing services with respect to funds lawfully due;
        (c)      the sale of specialized literature, software and other material related to its
                 activities; and,
        (d)      employment verification services.


Subject to the prior written approval of the Central Bank, a credit bureau may also engage in the
following additional activities:
        (a)      the assessment of debtors’ book of business for the sale of the business and other
                 transactions;
        (b)      forensic investigations;
        (c)      fraud detection;
        (d)      dissemination of information for strategic risk information for market expansion
                 or contraction purposes;
        (e)      training and consultancy services; and
        (f)      such other activities as may be approved by the Central Bank in writing.


A credit bureau shall not engage in activities other than those specified in this Law or as approved
by the Central Bank in writing.


Article 11: Duties of credit bureaus with respect to operations




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A credit bureau shall ensure that:
        (a)     its premises are safe and are adequate to operate its data systems, database and
                other operations, and are suitable to provide adequate customer service;
        (b)     it employs the use of hardware and software that meet security standards required
                by the Central Bank when setting up and using the information systems that
                houses its database;
        (c)     it establishes and maintains an enquiry service unit and recruits and maintains
                personnel sufficiently trained in customer relations and credit reporting to handle
                queries of customers and participants;
        (d)     it prepares and maintains operational manuals that ensure the accuracy of
                information contained in its database including manuals for: queries, loading of
                data, source quality control, maintenance, security, and procedure for handling
                complaints;
        (e)     it adopts measures and systems that record requests or queries for the credit
                bureau report of a customer as well as the misuse of data held in its database;
        (f)     it releases customer information solely for one or more permissible purposes as
                set forth in Article 27 of this Law;
        (g)     it follows operating procedures and data integrity and safety requirements which
                the Central Bank may impose from time to time; and,
        (h)     it supplies to the Central Bank all the data and on the frequency which it may
                require.


Article 12: Duties of credit bureaus with respect to participants


A credit bureau shall:
         (a)    develop an approval process for participants to ensure that all approved data
                providers and the subscribers are reasonably capable of complying with the
                provisions of the laws, regulations and instructions governing the credit
                information system;
         (b)    require each participant to enter into an agreement which, at a minimum:
                (i)        imposes an obligation to jointly implement organizational and technical
                           measures for the protection of customer information;
                (ii)       sets forth specific modalities for the submission of information to, and
                           delivery of credit bureau reports by, a credit bureau;



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                 (iii)    requires that the data to be provided shall be of the type and in the format
                          required by the Data Standardization Manual, as determined by the
                          Central Bank from time to time;
                 (iv)     sets forth an acknowledgement of its obligations under this Law
                          regarding the defined permissible purposes and the standards for
                          confidentiality as set forth in Articles 27 and 28, respectively; and,
                 (v)      such other provisions as may be required by the parties to the agreement
                          or the Central Bank;
        (c)      provide credit bureau reports on request, and in accordance with the provisions of
                 this Law;
        (d)      take immediate remedial action with respect to any subscriber who fails to
                 comply with provisions of this Law; and,
        (e)      such other duties as may be required by the Central Bank in writing.


Article 13: Duties of credit bureaus with respect to customer information


A credit bureau shall take all steps as are reasonably necessary to ensure that all customer
information that is received or collected by it is:
        (a)      properly and accurately recorded, maintained, collected, and processed in a
                 timely manner;
        (b)      properly placed in the correct file;
        (c)      protected against loss, including adequate back up and disaster recovery plans;
        (d)      protected against unauthorized access, use, modification or disclosure, both
                 within Rwanda and if transferred to other countries;
        (e)      obtained from reliable sources which take responsibility for the accuracy,
                 completeness and timeliness of information that is provided to the credit bureau;
                 and,
        (f)      promptly corrected if at any given time it is found to be inaccurate, and or
                 erroneous.




Article 14: Data retention requirements




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A credit bureau shall maintain customer credit information for a period of seven (7) years from
the date of the last transaction in the credit information for purposes of preparing credit reports,
and shall keep the database for a period of not less than ten years.


The Central Bank shall, by regulation, specify any limitations that may apply to the inclusion of
customer credit and other information in a credit bureau report.


Article 15: Permissible fees for services


The Central Bank has the authority to regulate the fees and other charges assessed by a credit
bureau.


Without limiting the foregoing, a credit bureau may charge such fees for its services, as shall be
agreed between the subscribers and the credit bureau.


The credit bureau shall notify Central Bank of such fees through periodic returns submitted in
accordance with the written direction of the Central Bank.




CHAPTER V: DATA PROVIDERS


Article 16: Role of a data provider


A data provider shall collect from customers and guarantors the information required by the Data
Standardization Manual, as approved by the Central Bank from time to time, for submission to
one of more credit bureaus.


Article 17: Duties of a data provider


A data provider shall be required to:
          (a)   enter into data submission agreement with one or more credit bureaus;
          (b)   collect customer information as provided under Article 18 and as the Central
                Bank may order;




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        (c)     undertake to provide their complete, accurate and timely proprietary credit or
                other information that accurately identifies the customer and the guarantor;
        (d)     update customer information in accordance with the procedures of the credit
                bureau;
        (e)     provide contact information with respect to the credit bureaus to which the
                customer and guarantor’s information has been submitted;
        (f)     conduct inquires into customer and/or guarantor challenges, as requested by the
                credit bureau or the Central Bank;
        (g)     promptly correct any inaccuracies detected in its database;
        (h)     take responsibility, and be responsible for any errors or inaccuracies in the
                customer information provided to a credit bureau; and,
        (i)     fulfill such other obligations as may be required by the Central Bank.


Article 18: Information to be provided to the credit bureau


A data provider shall provide to the credit bureau identifying data used to identify the specific
customer, individual or corporate; information on direct credits and on guarantees from third
parties; data provider internal credit facility number; and, other information as may be required
by the credit bureaus as approved by the Central Bank from time to time.


Article 19: Other sources of information for credit bureaus


A credit bureau may receive, compile and report information as regards to a person that is
ordinarily available to the public, including information that may be obtained from the following
government sources:
        (a)     government agencies that register business and maintains a register of businesses
                in operation;
        (b)     government agencies that register property rights and transactions which include:
                (i)       registries which maintain information or interests in immovable property,
                (ii)      creation of charges and other encumbrances on assets, and
                (iii)     the registration of discharges of the encumbrances;
        (c)     registries of courts which maintain;
                (i)       data on judgments on debts;
                (ii)      records on insolvency proceedings, and,



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                 (iii)    orders for the winding-up of businesses,


The public source may enter into contracts with credit bureaus to establish:
        (a)      the modalities for the provision of information by the source, and
        (b)      the manner and form in which the information is submitted.




The right of a credit bureau to access information from public sources shall be in addition to the
right of access to information granted under any other law.

Article 20: Customer information not to be reported by a data provider or obtained from
              other sources
Information as to race, creed, color, ancestry, ethnic origin, religion or political affiliation, state of
health, or sex life be reported by a data provider, included in the credit bureau’s database or
provided in a credit bureau report.


The Central Bank may otherwise limit the type of information that may be included in the credit
bureau report.


Article 21: No violation of other law


A data provider which reports information to a credit bureau in accordance with this Law, does
not violate the provision of the Central Bank Law, the Banking Law, other financial and/ non-
financial services legislation or legislation on privacy or confidentiality.


CHAPTER VI: SUBSCRIBERS


Article 22: Role of a subscriber


All mandatory participants shall serve as subscribers, and may be required by the Central Bank to
request a credit bureau report on the applicant and where applicable guarantors before entering
into a credit or insurance agreement; and annually for continued credit or insurance exposures.
However, the lack of information on the prospective borrower and/or guarantors in the credit
bureau shall not by itself prevent the participant from extending credit.



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Article 23: Duties of a subscriber


A subscriber shall be required to:
          (a)   obtain and use the information contained in the credit bureau report only for
                permissible purposes as set forth in Article 27 of this Law;
          (b)   abide by the confidentiality provisions set forth in Article 28 of this Law;
          (c)   obtain the consent of the customer as a condition to requesting a credit bureau
                report;
          (d)   not to sell, transfer or otherwise use the information obtained from a credit
                bureau for purposes other than outlined in the definition of permissible purposes;


          (e)   fulfill other obligations in accordance with this or other applicable law.


Article 24: Adverse action notice


If a subscriber denies credit or other services to a person, based in whole or in part on the
information contained in the credit bureau report, the subscriber shall notify the applicant by
issuing an adverse action notice.


An adverse action notice shall be provided at the time the adverse decision or determination is
communicated to the applicant, and shall advise the applicant of his or her right to review a copy
of the credit bureau report or customer information used in making the decision.


The Central Bank shall, by regulation, specify the modalities to be followed with respect to a
customer’s exercise of the right to review the customer information maintained by a credit
bureau.




CHAPTER VII: CONSENT




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Article 25: Requirement to obtain consent


Subscribers are required to secure the deemed consent of the applicant, customer and/or guarantor
to provide information on the applicant’s credit history and to obtain a credit bureau report
regarding the applicant, customer or guarantor, at the time the application for credit is submitted
to the subscriber.


Article 26: Consent


Subscribers must obtain expressed consent from applicants, prior to requesting a credit report
from the credit bureau.


Subscribers must also inform applicants of their rights to:
1) obtain copies of their credit report from the providing credit bureau; and,
2) dispute erroneous information.


Subscribers to a credit bureau must obtain deemed consent from clients or subjects of credit
information, present or historical, but not older than seven years, to be submitted to a credit
bureau.
Deemed consent will be considered obtained, for the collection of present or historical credit
history and related data, through the publication of this notice in a newspaper for a period of
6 months. Existing or historical clients or subjects of credit information, held at a subscriber,
who choose to refuse to have credit history and related data shared with a credit bureau must
notify the subscriber in writing, within the six month period, of their refusal to have their credit
history and related data shared with a credit bureau. Otherwise, the subscriber and the Central
Bank shall deem that consent was granted.




CHAPTER VIII: PERMISSIBLE PURPOSES


Article 27: Permissible purposes




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A credit bureau shall furnish a credit bureau report to a subscriber, and a subscriber shall use data
in the credit bureau report only under the following circumstances or for the following
permissible purposes:
        (a)     to assess an application for credit, the extension of additional credit and/or
                reviewing existing credit facilities;
        (b)     to assess an application for insurance or an insurance claim to monitor ongoing
                risk;
        (c)     pursuant to written instructions of the person to whom it relates;
        (d)     in response to a court having jurisdiction;
        (e)     to a government entity which is entitled to it under applicable legislation;
        (f)     to detect fraud and in fraud prevention activities;
        (g)      at the request of, or as authorized by, the person who is the subject of the credit
                bureau report, and,
        (h)     such other purposes as may be approved from time to time in writing by the
                Central Bank.


CHAPTER IX: CONFIDENTIALITY


Article 28: Duties of confidentiality


A credit bureau shall protect the confidentiality of customer information received under this Law
and shall only report or release such customer’s information:
        (a)     as authorized by, or to, the subjects of the information concerned;
        (b)     to the Central Bank;
        (c)     to a subscriber, provided that:
                (i)      the customer or guarantor has signed a consent;
                (ii)     the subscriber has certified to the credit bureau that it will use the
                         customer or guarantor information for the purpose of making a permitted
                         eligibility decision and for no other purpose; and
                (iii)    the subscriber has agreed to properly dispose of customer information
                         that is no longer needed for a duly authorized purpose so that it cannot
                         reasonably be read or reconstructed;
        (d)     as otherwise required by law.




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Credit bureaus and subscribers shall take all steps as are reasonably necessary to ensure that the
customer information obtained is duly protected against any loss or unauthorized access or use or
unauthorized disclosure, and observe, through their shareholders, directors, officers, employees or
agents, a perpetual duty of confidentiality with regard to the information divulged to them under
this Law.


Under no circumstances may a subscriber release such information to any third party other than
the subscriber’s appointed agent for the purpose of assisting the subscriber in the recovery of any
of its debts, or upon the written request and authorization of the subject of the credit bureau
report.


Article 29: Liability for disclosure


The disclosure by a credit bureau, a subscriber, or any shareholder, director, officer or employee
thereof, whether before or after its liquidation, of any customer information or information about
a guarantor, to any unauthorized person is prohibited, and the responsible party shall be liable for
a violation of this Law and subject to the penalties set forth in Articles 41 and 42 of this Law.


CHAPTER X: CUSTOMER RIGHTS


Article 30: Right to access information


A customer has the right to know what information the credit bureau maintains regarding that
customer, and is entitled to obtain a credit bureau report.


When a customer request a credit bureau report from a credit bureau, the credit bureau shall,
within five (5) working days of receiving a written request and such particulars as the credit
bureau may reasonably require to enable it identify the customer, provide to the customer a copy
of all customer information relating to the subject held by the credit bureau.


The customer shall have the right to receive a copy of the applicable credit report, without charge,
in the following cases:
          (a)    when an application for credit, or other authorized permissible purpose, results in
                 the rejection of the application by a subscriber;



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        (b)      one time within six (6) months after having inaccurate information corrected in
                 the credit information;
        (c)      one time on an annual basis, starting one year after the commencement of the
                 credit bureau’s operations, notwithstanding the cases specified in paragraphs (a)
                 and (b), above.


The customer also has the right, by paying a fee as determined by the credit bureau, to receive a
copy of the applicable credit report at any time.


Article 31: Dispute of information


A credit bureau shall establish an enquiry service unit to handle customer questions and other
enquiries.


Where the customer believes that the information contained in the database is inaccurate,
erroneous, insufficient, incomplete or outdated, the customer may notify the credit bureau in
writing of the information disputed.


Within five (5) working days of being informed that information in a customer’s credit bureau
report is disputed, the credit bureau shall:
        (a)      attach a note to the credit bureau report, warning that the disputed information is
                 under investigation, which notice shall remain on the file until resolution of the
                 dispute; and
        (b)      give the data provider that supplied the information a notice of dispute requesting
                 confirmation from the institution as to the accuracy of the information.


Within twenty (20) working days, the credit bureau shall conduct a reasonable investigation,
based on all relevant information provided by the customer, and contacting the appropriate data
provider as necessary. Where the investigation reveals an error, the credit bureau shall promptly
remedy the error.


If the credit bureau does not complete its investigation within twenty (20) working days, the
complaint shall be referred to the Central Bank, or corrected as requested by the customer.




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If the credit bureau later completes its investigation, it may reinsert or revise disputed information
based on the results of such investigation.


Upon receipt of a notice of resolution or an amendment notice from a data provider the credit
bureau shall, within five (5) working days of such receipt, send a notice of change to any
subscriber that has in the previous six (6) months obtained a credit information report from the
credit bureau containing the incorrect information, indicating the correction of the disputed data.
The data provider shall inform the credit bureau that it has corrected data and updated its system
accordingly.


Should the customer disagree with the resolution of the disputed information, the customer may
request the credit bureau to attach a statement of not more than twenty five words to the
customer’s credit bureau report, setting out the customer’s claim that the information is not
accurate and the credit bureau shall take reasonable steps to comply with the customer’s request.


Article 32: Charges for reasonable costs


The Central Bank shall, by regulation, specify when a credit bureau may charge a customer for
the costs of services of conducting an investigation with respect to the information contained in
the credit bureau database.


Article 33: Review by the Central Bank


Any customer who is not satisfied by the results of the investigation by the credit bureau may
submit a request for review with the Central Bank.


The Central Bank shall, by regulation, specify the detailed procedures to be followed by persons
desiring a review by the Central Bank of the investigation conducted by the credit bureau.


CHAPTER XI: GOVERNANCE


Article 34: Board of Directors


Every credit bureau shall have a board of directors consisting of not less than five (5) directors.



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The board of directors shall elect a non-executive chairman from amongst their members.


Members of the board of directors shall:
        (a)     have an overall understanding of the operation and information technology
                systems of the credit bureau;
        (b)     meet at least once quarterly;
        (c)     ensure that the activities conducted in all offices of the credit bureau are in full
                conformity with this Law;
        (d)     facilitate the appointment of a competent chief executive officer and chief
                information technology officer;
        (e)     ensure that the credit bureau maintains, at all times, an effective system of
                internal controls;
        (f)     ensure that the credit bureau maintains a customer claims and inquiry service
                section to attend to customers who may be affected by the information contained
                in the database and who allege that the information is illegal, inaccurate,
                erroneous or outdated;
        (g)     ensure that the credit bureau has adequate staff to undertake the functions of the
                credit bureau and to sufficiently meet the demands of customers;
        (h)     promote fair conditions for all participants of the credit information sharing
                system;
        (i)     promote transparency regarding pricing policies; and
        (j)     enforce security measures, policy on the overall service, and other such policies
                and procedures as may be reasonably necessary for the sound operation of the
                credit bureau.


CHAPTER XII: CHANGE IN CONTROL AND LIQUIDATION


Article 35: Change of control


A credit bureau shall request the prior written approval of the Central Bank for any arrangement
or agreement by which the credit bureau or the database of customer information is to change
control, be sold, or otherwise be merged with another entity.




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Article 36: Liquidation of a credit bureau


Subject to the approval of the Central Bank, a credit bureau may be wound up under the
provisions of the Law relating to Companies and the Law relating to commercial recovery and
settling of issues arising from insolvency.


Article 37: Database


Except as provided in Article 35 of this Law, in the event a credit bureau winds up its operations
either voluntarily or involuntarily, or the Central Bank revokes the license of the credit bureau,
the credit bureau shall deliver the database and backup copies of customer information to the
Central Bank.


The database shall be accompanied by sufficient technical instructions and support to ensure that
the database may reasonably be imported into a successor credit bureau system.


Upon verification of the integrity of the database provided and on explicit instructions of the
Central Bank, the credit bureau will erase all database records of customer information from all
its storage media, whether in Rwanda or outside, and provide documentation satisfactory to the
Central Bank evidencing that erasure.


CHAPTER XIII: REPORTING REQUIREMENTS


Article 38: Reporting requirements


The Central Bank shall, by regulation, specify the financial and other reporting requirement that
shall apply to credit bureaus and participants.


Article 39: Compliance report


A credit bureau shall submit to the Central Bank an annual compliance report in addition to its
audited financial statements which shall address:
        (a)     accuracy of information received and reported by the credit bureau;
        (b)     incidents of complaints and complaint resolutions;



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        (c)      adequacy of procedures employed by the credit bureau to ensure;
                 (i)      that information received and reported is accurate;
                 (ii)     that confidentiality of information is maintained; and
                 (iii)    that complaints are resolved promptly and satisfactorily;
        (d)      such other related matters as required by the Central Bank.


Article 40: Investigative Powers of the Central Bank


The Central Bank may inspect the books, accounts, documents and transactions and other records
of a credit bureau and/or a participant.


The Central Bank may at any time have its own auditors or inspectors, or any other person
appointed by the Central Bank for this purpose, carry out an on-site inspection of a credit bureau
or a participant. Such person may seize or take copies of any relevant documents as they deem
necessary in the proper exercise of their function.


The Central Bank may instruct the external auditors of the credit bureau or a participant to
perform audits on the Central Bank’s behalf, but at the expense of the audited entity. The external
auditors are obliged to cooperate with the Central Bank and may not invoke their professional
confidentiality against the Central Bank.


CHAPTER XIV: ADMINISTRATIVE SANCTIONS


Article 41: Administrative sanctions


The Central Bank shall by regulation specify the administrative and pecuniary sanctions that shall
be assessed if a credit bureau, data provider, a subscriber or other person contravenes any of the
provisions of this Law.


CHAPTER XV: CRIMINAL PROVISIONS


Article 42: Crimes and penalties




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Rwanda - Draft Credit Bureau Law                                     September29, 2009

In addition to the sanctions and penalties that the Central Bank may impose pursuant to Article
41, the Court, following the Central Bank’s advice, may impose upon conviction criminal
penalties as follows:
        (a)     any person who establishes, operates or conducts business as a credit bureau
                without a license in violation of Article 5 commits an offence and is liable upon
                conviction as follows:
                (i) in the case of a legal person, to a fine of not less than 2 million or more than
                        5 million RFW, and
                (ii) in the case of an individual to a fine of not less than 1 million or more than
                        3 million RFW or imprisonment for six months to three years, or both.
        (b)     any person who releases customer information in violation of Articles 27 and 28
                commits and office and is liable upon conviction as follows;
                (i) in the case of a legal person, to a fine of not less than 2 million or more than
                        5 million RFW, and
                (ii) in the case of an individual to a fine of not less than 1 million or more than 3
                        million RFW or imprisonment for a six months to three years, or both.
        (c)     any person who steals, intercepts, interferes with, alters or modifies, diverts, or
                facilitates any act that accomplishes the same, commits an offense and is liable
                upon conviction to:
                (i) in the case of a legal person, to a fine of not less than 2 million or more than
                        5 million RFW, and
                (ii) in the case of an individual to a fine of not less than 1 million RFW or
                        imprisonment for a six months to three years, or both.
        (d)     any credit bureau or participant that fails, without reasonable excuse, to produce
                a book, account, document, record, or information requested commits an offense,
                and is liable upon conviction to:
                (i) in the case of a legal person, to a fine of not less than 2 million or more than
                        5 million RFW, and
                (ii) in the case of an individual to a fine of not less than 1 million RFW or
                        imprisonment for a six months to three years, or both.


The commencement of any action under this Chapter may be taken by any injured party or upon
the Central Bank’s request.




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Article 43: Criminal investigation


Infringements of this Law or any other offence prejudicial to the credit information system are
determined by criminal investigation department officers as well as by the Central Bank’s agents
with the capacity of a judicial police officer for this purpose.


Article 44: Statute of limitations


In this Law, a criminal action is extinguished after a period of ten (10) years from the date of the
alleged offense.


CHAPTER XVI: FINAL PROVISIONS


Article 45: Entry into force


The provisions of this Law shall enter into force on the date of its publication in the official
Gazette of the Republic of Rwanda.


Kigali, on …/…/200_


                                    The President of the Republic


                                          KAGAME Paul


                                         The Prime Minister


                                        MAKUZA Bernard


                          Seen and sealed with the Seal of the Republic:


                              The Minister of Justice/Attorney General


                                    KARUGARAMA Tharcisse




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