Report brings out evidence on TelexFree money laundering cartel

Report brings out evidence

A report on the findings of operations conducted by TelexFree has indicated that the company was involved in laundering an estimated to Rwf7billion to foreign companies in the US and Germany evading taxation.

The government of Rwanda recently announced the ban of all operations of P.L.I Telexfree Rwanda Ltd, a multi-level Internet marketing Service Company, citing fears of money laundering.

One of the government investigators, Emanuel Bayingana revealed that about $6 million was to be sent to Rwanda from US as taxes, but Telexfree failed to justify it.”

The report released by an investigation team led by the Ministry of Trade and Industry indicated that the company has been laundering money, evading taxes and exploiting Rwandans to the benefit of its foreign owners.

Telexfree arrived in Rwanda in the Second Quarter of 2013, whereby it was fully and duly registered by RDB, approved and Registered as a Commercial Company since 12 June 2013 with the affiliate name “PLI TelexFree (Rwanda) Ltd”.

The 14 year old Company has been involved in raising the excitement of enabling people to be hired (as Promoters) and start getting paid on average, $100 every week for 52 weeks, for posting daily adverts on the internet.

Meanwhile, government is set to launch a campaign aimed at curbing money laundering. Rwanda passed the anti-money laundering and combating financing of terrorism law in 2008, a move that positioned the country to be competitive within the East African Community (EAC) by raising investor confidence.

According to the Rwandan law, any person who leaves or enters the country transporting cash or negotiable bills of exchange exceeding $10,000, without prior declaration, except for funds certified by a withdrawal slip issued by an accredited bank, will be committing a money laundering offence

 

 

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About the author

Olive Ndaka is the Junior Editor for RwandaEye. An investor and young entrepreneur, she is a quick learner and has contributed many articles for RwandaEye in Kinyarwanda.

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