Financial Crime World

Uganda’s Recent Removal from FATF Grey List Highlights Importance of Financial Crime Reporting Guidelines

Enforcing and Implementing Guidelines to Prevent Money Laundering and Terrorist Financing

The recent removal of Uganda from the Financial Action Task Force (FATF) grey list has emphasized the significance of enforcing and implementing guidelines to prevent money laundering and terrorist financing in the country. In this regard, two key guidelines have been issued by the Financial Intelligence Authority (FIA) and the Uganda Telecom Regulatory Authority (UTRA).

FIA’s Guidelines on Large Cash Transaction Reporting

  • Require accountable persons, including commercial banks, credit institutions, microfinance deposit-taking institutions, insurance companies, forex bureaus/money remitters, advocates, accountants, real estate agents, churches and religious organizations, non-governmental organizations, dealers in precious metals and stones, and casinos and gaming houses to record and file all cash and monetary transactions exceeding 1,000 currency points (UGX 20,000,000) with the FIA.
  • Cover various sectors such as commercial banks, credit institutions, microfinance deposit-taking institutions, insurance companies, forex bureaus/money remitters, and other relevant entities.

Reporting Requirements

  • Accountable persons are required to report large cash transactions to the FIA to prevent the misuse of the financial system and promote transparency and accountability.
  • Reports should be filed by designated money laundering control officers (MLCOs) or their alternates every week in an electronic format (MS Excel) by 5:00 pm every Tuesday for the transactions of the preceding week.

UTRA’s Directive on Mobile Money Transactions

  • Requires users to produce identification before conducting transactions above UGX 1 million.
  • Aims to prevent the misuse of mobile money services for illicit activities, similar to the FIA guidelines in preventing money laundering and terrorist financing.

Differences between FIA Guidelines and UTRA’s Directive

  • The FIA guidelines are more comprehensive and apply to a broader range of accountable persons.

Conclusion

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The removal of Uganda from the FATF grey list underscores the importance of enforcing and implementing guidelines to prevent money laundering and terrorist financing in the country. The FIA’s guidelines on large cash transaction reporting and the UTRA’s directive on mobile money transactions are crucial steps towards achieving this goal. By complying with these requirements, accountable persons will contribute to the integrity of Uganda’s financial system and help prevent financial crimes.