Financial Crime World

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Financial Crime Data Analysis Reveals Alarming Trends in Uganda

A new joint publication by Advocates Coalition for Development and Accountability (ACODE) and Global Financial Integrity (GFI) has shed light on the alarming trends of Trade-Based Money Laundering (TBML) in Uganda. The report, titled “Trade-Based Money Laundering in Uganda,” delves into the vulnerable sectors susceptible to TBML, including:

  • Import and export
  • Extractive industry
  • Agricultural sector

Key Risk Factors

According to the study, corruption, lack of coordination among stakeholders, relaxed oversight over Free Trade Zones, and limited understanding of TBML and techniques used are key risk factors that make Uganda an attractive hub for money launderers.

Government Efforts

The report highlights the commendable efforts of the Ugandan government in combating TBML. However, it emphasizes the need for continued collaboration between government agencies, financial institutions, and civil society organizations to ensure a comprehensive response.

Recommendations

To combat TBML, ACODE and GFI have offered key recommendations, including:

  • Raising awareness and providing training on TBML among private and public actors
  • Implementing beneficial ownership laws and enforcing sanctions systems
  • Data sharing and coordination among stakeholders
  • Increasing support and funding to frontline agencies

Illicit Financial Flows

Illicit Financial Flows (IFFs) are a significant challenge to Uganda’s development agenda, with the country losing over UGX.2 trillion annually to IFFs. TBML is one of the most sophisticated methods of money laundering, making it difficult for financial institutions and customs authorities to detect.

Complexity of TBML

The study highlights the complexity and multifaceted nature of TBML, which poses significant threats to Uganda’s financial system and economy as a whole.

Conclusion

ACODE and GFI express their gratitude to all contributors who made this research possible. They hope that the findings will stimulate productive dialogue and encourage collaborative actions to combat TBML in Uganda.

Contact Information

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