US sanctions Rwanda's Ministry of Defense and Zigama Credit and Savings Society over M23
The United States sanctioned Rwanda's Ministry of Defense and Zigama Credit and Savings Society, a financial institution serving Rwanda's security services, over support linked to the M23 armed group in eastern Congo.
The US Department of State announced on 28 October 2026 that the United States is sanctioning Rwanda's Ministry of Defense and Zigama Credit and Savings Society. The State Department describes Zigama as a financial institution that serves Rwanda's security services. Its statement refers readers to the Department of the Treasury's press releases for more information; the Treasury release could not be accessed for this story.
According to the State Department, the Ministry of Defense is designated pursuant to Executive Order 13413, as amended, for providing support to the Rwanda Defense Force (RDF). Zigama is designated for providing support to the RDF, the March 23 Movement (M23) and AFC.
The State Department says thousands of RDF troops fight alongside M23 in North and South Kivu provinces and have supplied the group with weapons and training. It says the Ministry's support for M23 violates Rwanda's obligations under the Washington Accords for Peace and Prosperity, which the Democratic Republic of the Congo (DRC) and Rwanda signed on 4 December 2025.
The statement also describes forced labour, dangerous conditions and illegal taxation in gold and coltan mining areas under M23 control, including Rubaya in North Kivu. The State Department urges partners and the private sector to examine their supply chains closely.
Why it matters to AML professionals
When a financial institution is designated, banks must check whether they hold its accounts or process payments for it, including through correspondent relationships. Designations linked to conflict minerals also raise risk for customers that trade gold, coltan or other minerals from affected regions. AML professionals in sanctions and trade finance teams need to update screening and review exposure quickly.
Red flags in this case
- Payments to or from a newly designated financial institution, directly or through a correspondent bank
- Trade in gold or coltan where the stated origin is unclear or keeps changing
- Mineral traders whose suppliers are located near conflict areas named in sanctions announcements
- Counterparties connected to a designated government ministry or its affiliated businesses
If this landed in your queue
- Confirm the designated names are in the screening lists and rescreen customers, counterparties and correspondent relationships
- Check for pending or recent payments involving the designated parties and block or reject them as the rules require
- Review customers in the minerals trade for supply chain due diligence on origin and intermediaries
- Escalate any match to the sanctions team and follow the required reporting process
Key terms
- Designation
- Adding a person or entity to a sanctions list, which generally blocks their property and bars dealings with them under that programme.
- Executive Order 13413
- The US presidential order that sets up sanctions relating to the Democratic Republic of the Congo.
- Conflict minerals
- Minerals such as gold and coltan whose trade can fund armed groups.
Interview angle
A bank your institution deals with has just been sanctioned. What do you do first?
Explain rescreening against the updated list, identifying direct and indirect exposure including correspondent and nested relationships, stopping affected payments under the rules, and escalating to the sanctions officer for blocking or rejection reports.
Sources
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