Money Laundering Techniques in Uganda Exposed: ACODE and GFI Publish Joint Report
Introduction
A new report by Advocates Coalition for Development and Governance (ACODE) and Global Financial Integrity (GFI) has shed light on the lucrative trade-based money laundering (TBML) schemes operating in Uganda. The joint publication, titled “Trade-Based Money Laundering in Uganda,” reveals that several sectors are vulnerable to this illegal activity, including import and export, extractive industries, and agriculture.
What is Trade-Based Money Laundering?
According to the report, TBML is a sophisticated method of money laundering that disguises criminal proceeds through legitimate trade transactions. This illicit practice poses a significant threat to Uganda’s financial system and economy, with an estimated annual loss of over UGX 2 trillion due to Illicit Financial Flows (IFFs).
Risk Factors Contributing to TBML in Uganda
The study identified several risk factors contributing to TBML in Uganda, including:
- Corruption
- Lack of coordination among stakeholders
- Relaxed oversight over Free Trade Zones
- Limited understanding of TBML techniques
These vulnerabilities have allowed criminals to exploit the trade system for illicit financial activities.
Efforts to Combat TBML
The report acknowledges the efforts made by the Ugandan government to combat TBML, including:
- Implementation of policies, legislation, and institutional frameworks
To strengthen the country’s anti-money laundering regime, ACODE and GFI recommend:
Recommendations
- Raising awareness and providing training on TBML among private and public actors
- Implementing beneficial ownership laws
- Enhancing data sharing and coordination among stakeholders
Collaboration is Key
The report emphasizes the need for continued collaboration between government agencies, financial institutions, and civil society organizations to ensure a comprehensive response to TBML. According to ACODE and GFI, addressing TBML is crucial for Uganda’s economic stability and sustainable development.
Quotes
“We hope that this publication will stimulate productive dialogue and encourage collaborative actions to combat TBML in Uganda,” said a spokesperson for ACODE and GFI. “Our findings highlight the importance of awareness, coordination, and cooperation to prevent financial crimes and ensure that Uganda’s economy benefits from legitimate trade activities.”
Conclusion
The report highlights the urgent need for action to address TBML in Uganda. By raising awareness, improving coordination, and implementing effective policies, the country can prevent financial crimes and promote sustainable development.