Financial Crime World

Uganda Takes Tough Stance on Financial Crime: Regulatory Bodies Crack Down

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Uganda has implemented a series of measures to combat money laundering and terrorist financing, aimed at preserving its reputation as an attractive destination for global investors.

New Regulations

Under the Anti-Money Laundering (Amendment) Regulations, 2023, financial institutions and other accountable persons are required to:

  • Register with the Financial Intelligence Authority (FIA)
  • Submit large cash transaction reports worth Ugx 20 million or more
  • Report any suspicious or unusual transactions

Compliance Initiatives

To promote compliance, the FIA has launched a series of nationwide awareness initiatives, including:

  • Training sessions
  • Webinars
  • On-site visits

Supervisory bodies like the Bank of Uganda also conduct regular inspections to identify non-compliance.

Consequences for Non-Compliance

For those who fail to adhere to the regulations, the consequences can be severe. The sanctions for non-compliance include:

  • Written directives with reprimand and instructions to take remedial action
  • Financial penalties ranging from:
    • Ugx 10 million to Ugx 750 million for corporate persons
    • Ugx 5 million to Ugx 250 million for natural persons
  • Criminal prosecution, including fines and imprisonment for up to 10 years

AMLA Regulations Aim to Combat Financial Crime

The Anti-Money Laundering (Amendment) regulations aim to:

  • Combat financial crime
  • Protect the integrity of Uganda’s financial system
  • Preserve its reputation as an attractive destination for global investors

It is crucial that accountable persons comply with these regulations to avoid administrative sanctions and ensure the integrity of the financial system.