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Uganda’s Financial Regulators Emphasize Importance of Suspicious Transaction Reporting

KAMPALA, UGANDA - The Financial Intelligence Authority (FIA) and the Uganda Securities Association Against Money Laundering and Terrorism Financing (ESAAMLG) have emphasized the importance of suspicious transaction reporting in the country’s fight against money laundering and terrorist financing.

What Counts as Suspicion?

According to the 40 FATF Recommendations, which apply to Uganda’s Anti-Money Laundering/Countering the Financing of Terrorism (AML/CFT) framework, financial institutions and other designated entities are required to report any transactions that may be linked to money laundering or terrorist financing. A suspicion can be formed without knowing all the details of a particular criminal offence, or whether those elements have been established. If a person has formed a suspicion, there is a duty to report on that suspicion.

Procedures for Reporting Suspicious Transactions

The FIA has developed an information guide on how to identify a suspicious transaction, when to submit a report, and what to report in the report. Reports can be submitted directly to the FIA or through designated Money Laundering Control Officers (MLCOs) within financial institutions.

Protection from Prosecution

Making a suspicious transaction report can protect a person from being subsequently prosecuted for the offence of dealing in property that is the proceeds of crime or an indictable offence. Section 37 of the AMLA 2013 provides protection from prosecution in such circumstances.

Confidentiality and Protection of Identity

The identity of the person filing a suspicious transaction report is strictly confidential, with access to disclosed information restricted to FIA officers only. The AMLA 2013 imposes tight restrictions on revealing the identity of the person making the report.

Main Offences Relating to Suspicious Transaction Reporting

  • Failure to report suspicious or unusual transactions
  • Tipping off

When a person knows or suspects that any property represents the proceeds of crime or other indictable offences, or is intended to be used in connection with such offences, they are required to report such information to the FIA within 48 hours or to an MLCO designated by their employer for Anti-Money Laundering purposes.

Designated Entities and Responsibility

  • Financial institutions
  • Other designated entities

Financial institutions and other designated entities have a legal obligation to report suspicious transactions. For such obligation to arise, it is not necessary to be able to identify or suspect the specific nature of the offence, or even to establish that an offence has been committed or will be committed.

By reporting suspicious transactions, financial institutions and individuals can help prevent money laundering and terrorist financing in Uganda.