Financial Crime World

Uganda’s Anti-Terrorism Regulations: Accountable Persons Must Take Immediate Action

Kampala, Uganda - In an effort to combat terrorism and proliferation financing (TF/PF), the Ugandan government has introduced new regulations requiring accountable persons to take immediate action upon receipt of notice from the Financial Intelligence Authority (FIA).

Regulatory Requirements

According to Regulation 12(9) of the Anti-Terrorism Amendment Regulations, 2023, if an accountable person identifies a positive match with a sanctions list, they must:

  • Freeze any related funds or property without delay
  • Submit a report to the FIA

Customer Screening

The regulations require accountable persons to have systems in place for customer screening during on-boarding and throughout the life cycle of the customer relationship. This includes screening:

  • Beneficiaries
  • Guarantors
  • Principals
  • Beneficial owners
  • Nominee shareholders
  • Directors
  • Signatories
  • Powers of attorney
  • Any other parties linked to the account

Transaction Screening

Each incoming and outgoing transaction must be screened for a potential match with sanctions lists. Accountable persons are required to monitor transactions and consider common data fields such as:

  • Parties involved
  • Bank names
  • Bank identifier codes (BIC)
  • Free text fields

Positive Matches

In the event of a positive match, accountable persons are required to:

  • Immediately cease dealing with related funds or property
  • Not make them available to or for the benefit of the designated party
  • Investigate further

Verification and Investigation

The regulations emphasize the importance of verifying matches to ensure that they are true positives and not false alarms. Accountable persons are advised to use additional information gained through further investigation to confirm or discount a potential match.

Compliance and Reporting

The FIA has emphasized the need for accountable persons to comply with these regulations in order to effectively combat TF/PF and prevent the financing of terrorist activities. Accountable persons must:

  • Report positive matches to the FIA without delay, including information such as:
    • Account number
    • Name of account owner or holder
    • Time of freezing
    • Balance of account at time of freezing
    • Related accounts
  • Investigate further to verify matches and ensure compliance with regulations.

Key Takeaways

  • Accountable persons must take immediate action upon receipt of notice from the FIA
  • Customer screening is mandatory during on-boarding and throughout the life cycle of the customer relationship
  • Each transaction must be screened for a potential match with sanctions lists
  • Positive matches must be reported to the FIA without delay, including relevant information
  • Accountable persons are required to investigate further to verify matches and ensure compliance with regulations.