Financial Intelligence Unit Fails to Reach Agreement with Foreign State

The Financial Intelligence Unit (FIU) in Uganda has faced a setback after failing to enter into an agreement with a foreign state or international organization on the terms and conditions of disclosure. According to sources, the agreement has been stuck in limbo for months, with no clear indication when it will be finalized.

Impasse Raises Concerns

The proposed agreement would have stipulated that any report or information shared between the FIU and the foreign entity would be used solely for intelligence purposes and treated confidentially. The agreement would also have required the consent of the FIU before any further disclosure could be made.

However, the impasse has raised concerns about the potential risks of sharing sensitive financial information without proper safeguards in place. Critics argue that the lack of an agreement puts Uganda’s financial stability at risk, while others believe it is a sign of poor communication and coordination between government agencies.

New Director Appointed

Meanwhile, the President has appointed a new Director of the Financial Intelligence Unit for a five-year renewable term. The appointment was made after approval from the Public Appointments Committee. The new Director will be responsible for overseeing the FIU’s operations and ensuring that its functions are carried out effectively.

Staff Appointments and Removals

The FIU has also appointed other staff members, including a legal practitioner and a person with a sound financial background. The appointments were made after approval from the Minister of Finance.

However, the President retains the power to remove the Director from office on grounds of misconduct, incapacity or incompetence, subject to approval from the Public Appointments Committee.

Confidentiality Oath

All staff members of the FIU are required to take an oath of confidentiality before beginning their duties. The oath is intended to maintain the secrecy of sensitive financial information and prevent its unauthorized disclosure.

Disclosure of Information

The FIU has strict guidelines for disclosing information, which is only allowed when necessary for the detection, investigation or prosecution of unlawful activities, money laundering offenses, or financing of terrorism. Any breach of confidentiality can result in fines and imprisonment.

Strengthening Financial Intelligence Capabilities

The developments come as the government seeks to strengthen its financial intelligence capabilities and prevent illicit financial flows. The FIU plays a critical role in this effort, and its ability to share information with foreign entities is crucial for effective cooperation.

Call for Transparency and Accountability

In the meantime, stakeholders are calling for greater transparency and accountability from the FIU, particularly regarding the handling of sensitive financial information.