Financial Crime World

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Anti-Money Laundering (AML) and Know Your Customer (KYC) Procedures in Uganda

Suspicious Transaction Indicators

When dealing with financial transactions, it is essential to identify suspicious activities that may indicate money laundering. The following indicators should be watched for:

  • Unregistered or unverified entity: Verify the identity of all parties involved in a transaction.
  • Difficulty in contacting the partner or beneficiaries: Ensure you have a clear way to communicate with them.
  • Unjustifiable requests for cash payments: Be wary of transactions that require large cash payments without a valid explanation.
  • Requests for paying cash to someone who is not related to the project: This may be a sign of money laundering.
  • Requests for money to be paid into an account not held in the name of the partner: Verify the ownership of the account before making any transactions.

Reporting Requirements

As a financial institution, you are required to submit various reports to the Financial Intelligence Authority (FIA) and other relevant agencies. The following forms must be submitted:

  • Registration of accountable person: Form 1: Submit this form as soon as practically possible or as directed by FIA.
  • Notification of change of registered particulars: Form 2: Submit this form immediately after any changes have been made to your registration details.
  • Appointment of Money Laundering Control Officer (MLCO): Form 3: Submit this form as soon as practically possible or as directed by FIA.
  • Cash and monetary transactions exceeding UGX 20 million: Form A: Submit this form as soon as possible after the transaction has taken place.
  • Reporting a suspicious transaction: Form B: Submit this form not later than 48 hours from the time of noticing the suspicious transaction.
  • Annual Report: Submit this report by January 31 each year.
  • Risk Assessment Report: Submit this report to FIA not later than 48 hours.

Additional Notes

When filling and submitting any forms, ensure you keep a copy at your organisation’s premises for a minimum of 10 years. For further information or clarification on AML/KYC procedures, contact Chapter Four Uganda.