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The United States used a $5m reward for info leading to Félicien Kabuga’s arrest.
Mr Kabuga was apprehended by gendarmes in Asnières-sur-Seine, where he had actually been living under an incorrect identity.
The International Crook Tribunal for Rwanda has charged the 84- year-old with genocide and crimes against mankind.
The United States had used a $5m (₤ 4.1 m) reward for details leading to Mr Kabuga’s arrest.
By Will Ross, Africa editor, BBC World Service
The entrepreneur from the Hutu ethnic group is accused of being one of the main financiers of the Rwandan genocide, paying for the militias that brought out the massacres.
He likewise established and funded the well-known Radio Télévision Libre des Mille Collines (RTLM), a Rwandan broadcaster that actively encouraged people to search out and eliminate anybody who was from the Tutsi ethnic group.
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The reality that he has been discovered on the outskirts of Paris living under a false name is surprising.
For many years, Félicien Kabuga was thought to be living in Kenya, where powerful political leaders were accused of warding off efforts to get him apprehended.
More than a quarter of a century after the genocide, he will go on trial at an international court.