Uganda Adopts New Anti-Money Laundering and Counter-Terrorism Framework
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The Ugandan government has unveiled a new strategy to combat money laundering, terrorist financing, and proliferation financing over the next five years. The National Anti-Money Laundering (AML)/Countering Financing of Terrorism (CFT) Strategy aims to secure the nation and its citizens against these financial threats.
Key Objectives
The strategy comprises six key objectives aimed at enhancing compliance with international standards set by the Financial Action Taskforce (FATF), strengthening Uganda’s legal and regulatory framework, building stakeholder capacity, promoting regional and international cooperation, improving investigation and prosecution of AML/CFT/PF matters, and national coordination.
Gaps in Current Measures
The government has identified gaps in its current AML/CFT measures, including:
- Inadequate implementation of anti-money laundering, terrorist financing, and proliferation financing laws
- Lack of a robust legal and administrative framework to combat proliferation financing
To address these gaps, the government is putting in place a comprehensive framework to combat proliferation financing, consistent with UN standards and FATF recommendations.
Implementation Guidelines
The Ministry of Internal Affairs has issued guidelines on the implementation of targeted financial sanctions (TFS) following the amendment of the Anti-Terrorism Act. The move aims to:
- Provide for the offence of proliferation financing
- Strengthen Uganda’s efforts to counter terrorism
Industry Expertise
Industry experts say that the new strategy will help Uganda strengthen its position against money laundering, terrorist financing, and proliferation financing, and bring it in line with international standards.
Impact on Financial Sector
The implementation of the strategy is expected to have a significant impact on the country’s financial sector and overall economic stability.