Financial Crime World

Uganda Moves to Increase Transparency on Beneficial Ownership Amid Global Crackdown on Money Laundering

In a bid to stem the tide of illicit financial flows, Uganda is set to adopt tougher measures to ensure transparency in beneficial ownership as required by global anti-money laundering standards.

Global Anti-Money Laundering Efforts

The move comes after the Financial Action Task Force (FATF) agreed last year to introduce stricter global standards for identifying true owners of companies. The FATF’s revision of Recommendation 24 requires countries to ensure that competent authorities have access to adequate, accurate and up-to-date information on the true owners of companies.

Uganda’s Response

According to sources, the Ugandan authorities are working on implementing a public registry or alternative mechanism that will provide efficient access to information on beneficial ownership. This follows the FATF’s revision of Recommendation 24.

Key Features of Uganda’s Proposed Mechanism

  • Public Registry: A centralized database that will contain information on companies and their true owners
  • Alternative Mechanisms: Possible alternatives to a public registry, such as private databases or online platforms
  • Access to Information: Efficient access to information on beneficial ownership for competent authorities

Expert Opinion

Experts say the move is a welcome development in the fight against organized crime, corruption, and sanctions evasion. Anonymous shell companies have long been used to hide illicit proceeds.

Benefits of Increased Transparency

  • Prevention of Shell Companies: Preventing the misuse of shell companies for criminal purposes
  • Risk Assessment: Helping Uganda assess and mitigate risks associated with foreign companies operating within its borders
  • Creation of a Transparent Business Environment: Creating a more transparent business environment to prevent illicit activities

Global Trend

Uganda joins a growing list of countries that have committed to increasing transparency on beneficial ownership in line with the revised global standards.

International Cooperation

The move is seen as a significant step towards creating a more transparent business environment and preventing the misuse of shell companies for illicit activities. The guidelines are the result of extensive consultations between Ugandan authorities, external stakeholders, and the private sector over several months.