Financial Crime World

Financial Crime Reporting Guidelines Issued in Uganda

The Ugandan government has issued new guidelines for financial institutions to report financial crimes, aimed at strengthening efforts to combat money laundering and terrorism financing. The guidelines require all accountable persons, including banks, insurance companies, and other financial institutions, to have an Anti-Money Laundering (AML) program in place.

Compliance Program Requirements

  • A system of internal policies, procedures, and controls to detect and prevent money laundering and terrorist financing activities
  • A designated compliance function with a compliance officer
  • Ongoing employee training programs
  • An independent audit function to test the overall effectiveness of the program

Anti-Money Laundering (AML) Policy Requirements

  • Outlining procedures and controls to detect and prevent money laundering risks
  • Measures such as:
    • Identifying high-risk operations
    • Informing senior management and the board of known compliance deficiencies
    • Assigning clear accountability to employees
    • Providing for continuity of the program
    • Segregating duties

Customer Due Diligence (CDD) Requirements

  • Risk-based CDD policies and procedures
  • Enhanced due diligence measures for high-risk customers
  • Regular risk assessments to identify high risks and adopt appropriate measures to mitigate them

Record-Keeping and Reporting Requirements

  • Keeping records for a period of 10 years
  • Ensuring records are up-to-date and well-maintained
  • Adhering to reporting requirements, including:
    • Timely submission of AML policy, risk assessment reports, and suspicious transaction reports

Implementation and Compliance

  • Ongoing employee training programs
  • Regular AML audits
  • Continuous review of transaction monitoring rules
  • Submission of AML policies to the Financial Intelligence Authority (FIA) for feedback and guidance on compliance

The issuance of these guidelines is a significant step towards strengthening Uganda’s efforts to combat financial crime and protect its financial system from money laundering and terrorist financing risks.