URSB Warns Public on Money Laundering through Companies

Kampala - The Uganda Registration Services Bureau (URSB) has sounded the alarm about the rising threat of money laundering and terrorist financing through companies.

Warning: Companies Used for Illicit Activities

According to URSB statistics, there are over 325,000 active companies in Uganda, with the majority being private limited companies. However, some of these companies are being misused by criminals to launder money and hide their illicit activities.

• Criminals use legitimate corporations to invest illegal proceeds, mask their identities, and avoid scrutiny.
• Shell companies, which have no significant operations or related assets, are also used to hide beneficial ownership and conceal crime.

Real Estate Companies Pose High Risk

Real estate companies are particularly vulnerable to money laundering due to the ease with which criminals can use them to hide and disguise illegal activities. Investigations have revealed that organized crime groups often use real estate companies to launder their proceeds.

• URSB has urged caution when dealing with companies involved in real estate transactions.
• The public is advised to verify the identity of company directors and shareholders, as well as the source of their funds.

ODPP Investigates Money Laundering Cases

The Office of the Director of Public Prosecutions (ODPP) is currently investigating two cases where companies registered with URSB and licensed by BoU were used by criminals to layer suspected crime proceeds in the money laundering cycle.

• The warning comes ahead of a planned crackdown on money laundering and terrorist financing in Uganda.
• URSB has warned that criminals are using routine transactions as part of the money laundering cycle, making it difficult for investigators to identify suspicious activity.