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Increased Scrutiny for Politically Exposed Persons and High-Risk Transactions in Uganda

Kampala, Uganda - In an effort to combat money laundering and terrorist financing, the Financial Intelligence Authority (FIA) has intensified scrutiny on individuals and organizations considered high-risk, including Politically Exposed Persons (PEPs).

What are Politically Exposed Persons?

A PEP is defined as an individual who holds or has held a prominent public position, such as a head of state, government official, or politician. The FIA has identified these individuals as being at higher risk of being involved in money laundering and terrorist financing activities.

New Measures to Detect and Prevent Suspicious Transactions

To detect and prevent suspicious transactions, the FIA has introduced new measures to require accountable persons, including NGOs, to register with the authority and submit regular reports on their financial activities. These reports include:

• Quarterly cash transaction reports for transactions exceeding UGX 20 million (approximately USD 5,500)
• Appointment of a Money Laundering Control Officer (MLCO) responsible for monitoring and reporting suspicious transactions
• Training on anti-money laundering (AML) and combating the financing of terrorism (CFT)

Increased Transparency

As part of the enhanced scrutiny, accountable persons are now required to submit quarterly cash transaction reports for transactions exceeding UGX 20 million. This move is aimed at detecting and preventing illegal activities, such as money laundering and terrorist financing.

Suspicious Transaction Reporting

The FIA has introduced new forms to report suspicious transactions, including Form B, which must be submitted within 48 hours of noticing any suspicious activity. NGOs are advised to keep a copy of all forms submitted to the authority for a minimum period of 10 years.

Chapter Four Uganda: A Model for Transparency

In an effort to demonstrate its commitment to transparency and accountability, Chapter Four Uganda, a local NGO, has voluntarily disclosed its financial transactions and reported any suspicious activities to the FIA. The organization’s willingness to cooperate with authorities sets a positive example for other NGOs in the country.

Conclusion

The intensified scrutiny on PEPs and high-risk transactions is a critical step towards preventing money laundering and terrorist financing in Uganda. By increasing transparency and reporting requirements, the FIA aims to create a more robust financial system that protects the integrity of the economy and prevents illegal activities.