Uganda’s Financial Watchdog, FIA, Expands Its Mandate in Fight Against Money Laundering

The Financial Intelligence Authority (FIA), Uganda’s financial watchdog established in 2013 to combat money laundering, has received a broader mandate from the Cabinet. This expansion of its role comes as the FIA continues its mission to monitor financial transactions, investigate suspicious activities, and enforce anti-money laundering laws.

Background: The Establishment of FIA

The creation of the FIA marked a significant milestone for Uganda. Established in response to the Anti-Money Laundering Act passed in July 2013, the FIA aligns the country with its East African Community neighbors, Kenya, Tanzania, and Rwanda, who had already implemented similar legislation (Muwanga, 2013).

The FIA’s initial mission was:

To identify and prevent the proceeds of crime from entering the financial system.
To enforce anti-money laundering laws and regulations.
To promote public awareness and understanding related to money laundering.
To exchange information with similar agencies as per treaties and agreements.

An Interim Leader and Successful Early Years

Ms. Maria Kiwanuka, Uganda’s then-finance minister, appointed Mr. Sydney Asubo as the interim executive director of the FIA in 2014 before the board was formed. FIA’s first few years in operation have yielded significant progress.

Expanding the FIA’s Role: A New Directive

With its updated mandate, FIA is now tasked with supporting Ministries, Departments, and Agencies (MDAs) in conducting financial integrity due diligence on private companies seeking to partner with the Government on Public-Private Partnerships (PPPs). This new directive aims to prevent collaborations with potential fraudsters and safeguard infrastructure development projects.

The Impact of the FIA’s Expanded Role

Through its continued dedication and expanded role, the FIA plays a pivotal role in maintaining the financial integrity of Uganda and contributing to the country’s stability and economic prosperity.