Title: “New Report Reveals Extent of Trade-Based Money Laundering in Uganda’s Economy: Urgent Action Needed”
Date: July 19, 2023
The Advocates Coalition for Development and Development (ACODE) and Global Financial Integrity (GFI) have published a new joint report, “Trade-Based Money Laundering in Uganda,” which sheds light on the extent of money laundering through trade activities in Uganda’s economy.
Vulnerable Sectors and TBML Risks
The report examines industries susceptible to trade-based money laundering (TBML) in Uganda, such as:
- Import and export industries
- Extractive industries
- Agriculture
By focusing on these sectors’ vulnerabilities, the study aims to initiate a collaborative dialogue between stakeholders, policymakers, and law enforcement officials.
Government Responses and Recommendations
Though the Ugandan government has taken steps to address TBML, the report emphasizes the need for sustained collaboration:
- Enhanced awareness and training on TBML.
- Private and public sector personnel.
- Implementation of beneficial ownership laws and effective sanctions systems.
- Improved data sharing and coordination among stakeholders.
- Increased support and funding for frontline agencies.
Consequences of Illicit Financial Flows (IFFs) in Uganda
The report highlights that illicit financial flows (IFFs), including TBML, have cost Uganda over UGX.2 trillion annually. TBML poses a significant threat to Uganda’s financial system and overall economy by masquerading as legitimate trade transactions.
Key Findings and Contributions
ACODE and GFI’s groundbreaking publication meticulously examines the vulnerabilities of Ugandan sectors to TBML and scrutinizes money launderers’ methodologies:
- The report aims to generate debate, collaborative actions, and serve as a valuable resource for policymakers, practitioners, and stakeholders.
- The authors thank all those who have contributed to the research.
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