Anti-Money Laundering (AML) and Counter-Financing of Terrorism (CFT) Guidelines in Uganda

Importance of Know Your Customer (KYC)

Knowing your customers, partners, or beneficiaries is crucial before disbursement of funds. This ensures that organizations understand who they are doing business with and helps prevent money laundering activities.

Red Flags to Watch Out For

Be cautious of the following situations:

• It’s difficult to contact a partner or beneficiary.
• Unjustifiable requests for cash payments.
• Paying someone not related to the project.
• Making payments into accounts not held in the name of the partner.

Reporting Requirements

Organizations must report certain transactions, including:

Mandatory Reports

1. Registration of Accountable Person (Form 1): As soon as possible after registration.
2. Notification of Change of Registered Particulars (Form 2): Immediately after any changes.
3. Appointment of Money Laundering Control Officer (MLCO) (Form 3): As soon as possible after appointment.
4. Cash and Monetary Transactions Exceeding UGX 20 Million (or Equivalent in Foreign Currency) (Form A): As soon as possible after the transaction.
5. Reporting a Suspicious Transaction (Form B): Within 48 hours of identifying a suspicious transaction.

Annual Reports

1. Annual Report: By January 31 each year, organizations must submit an annual report to the Financial Intelligence Authority (FIA).

Record-Keeping

Organizations must keep a copy of all forms submitted to the FIA or other agencies for at least 10 years.

Note: This is a general summary, and organizations should consult the FIA guidelines or seek professional advice for specific requirements.