Financial Crime World

Uganda’s Financial System Under Siege: Report Reveals Rampant Trade-Base Money Laundering

Kampala, July 19, 2023 - A new report by Advocates Coalition for Development and Global Financial Integrity has sounded a loud alarm about the alarming rise of trade-based money laundering (TBML) in Uganda.

The Study’s Findings

The joint publication, titled “Trade-Based Money Laundering in Uganda”, highlights the country’s vulnerability to this complex and sophisticated form of financial crime. The study reveals that various sectors, including:

  • Import and export
  • Extractive industry
  • Agriculture

are particularly susceptible to TBML.

Key Risk Factors

The report identifies key risk factors that contribute to Uganda’s vulnerability to TBML, including:

  • Corruption
  • Lack of coordination among stakeholders
  • Relaxed oversight over Free Trade Zones
  • Limited understanding of TBML techniques used by criminals

Recommendations for Strengthening the Anti-Money Laundering Regime

To strengthen Uganda’s anti-money laundering regime, the authors offer several recommendations, including:

  • Raising awareness and providing training on TBML
  • Implementing beneficial ownership laws
  • Increasing support and funding to frontline agencies

The Urgent Need for Effective Measures

The findings are particularly concerning in light of Uganda’s struggle with Illicit Financial Flows (IFFs), which have been estimated at over UGX.2 trillion annually. The report highlights the urgent need for effective measures to combat IFFs and TBML, which pose significant threats to economic stability and sustainable development.

Quotes from Key Stakeholders

  • “We hope that this publication will stimulate productive dialogue and encourage collaborative actions among stakeholders,” said [Name], Executive Director of Advocates Coalition for Development. “It is imperative that we work together to strengthen Uganda’s financial system and protect its economy from the adverse effects of TBML.”
  • “TBML is a significant threat to global economies, and Uganda is not immune to its effects,” said [Name], Executive Director of Global Financial Integrity. “We hope that our report will serve as a valuable resource for policymakers, practitioners, and stakeholders invested in combating TBML in Uganda.”

Conclusion

The report underscores the need for increased awareness and understanding of TBML techniques used by criminals, as well as improved coordination among stakeholders to prevent and detect this form of financial crime. It is essential that Uganda takes immediate action to address these concerns and protect its financial system from the devastating effects of TBML.