Anti-Money Laundering and Proceeds of Crime Act: Penalties for Non-Compliance

Stricter Penalties Introduced for Non-Compliance

The Anti-Money Laundering and Proceeds of Crime Act has been amended to introduce stricter penalties for individuals and corporate entities that fail to comply with its provisions. The new law imposes fines and imprisonment on those who make false declarations, exceed the prescribed threshold for declaring financial transactions, or hinder investigations into money laundering activities.

New Penalties for Non-Compliance

• Individuals found guilty of contravening certain provisions can be sentenced to a maximum term of 14 years in prison and/or fined up to Shs5 million.
• Corporate entities can be fined up to Shs25 million.
• Stricter penalties are also provided for those who fail to comply with court orders, hinder investigations or refuse to disclose information related to money laundering activities.

New Offenses Introduced

The Act introduces new offenses, including:

• Misusing information obtained during investigations
• Failure to comply with data protection principles

Goal of the Amendments

The amendments are aimed at strengthening Uganda’s efforts to combat money laundering and terrorist financing, and to prevent the misuse of financial systems for illegal purposes.

Reaction from Director of Public Prosecutions

“The new law sends a strong message that money laundering and other related offenses will not be tolerated in Uganda,” said the DPP. “We will work closely with law enforcement agencies to ensure that those found guilty of these offenses face the full weight of the law.”

Enhancing Effectiveness of the Act

The Anti-Money Laundering and Proceeds of Crime Act is a key instrument in Uganda’s fight against financial crime, and the amendments are expected to enhance its effectiveness in preventing and detecting money laundering activities.