Financial Crime World

Title: Ugandan Government and Civil Society Groups Team Up to Combat Trade-Based Money Laundering

July 19, 2023

Advocates Coalition for Development and Development (ACODE) and Global Financial Integrity (GFI) have collaborated on a groundbreaking joint publication, titled “Trade-Based Money Laundering in Uganda.” The report offers a comprehensive analysis of vulnerable sectors, impacts, and government efforts to combat this illicit practice.

Vulnerable Industries and TBML

The publication sheds light on industries that are particularly susceptible to Trade-Based Money Laundering (TBML):

  1. Import and export
  2. Extractive industry
  3. Agriculture

By exposing these vulnerabilities, the report aims to increase awareness among stakeholders and policymakers.

Commendation of Government Efforts

ACODE and GFI acknowledged the progress made by the Ugandan government in combating TBML. Some of the government’s initiatives include:

  • Implementation of policies, legislation
  • Development of institutional frameworks

The joint publication commends these efforts and emphasizes continued collaboration between government agencies, financial institutions, and civil society organizations.

Key TBML Risk Factors

The report identifies the following key TBML risk factors in Uganda:

  1. Corruption
  2. Lack of coordination among stakeholders
  3. Relaxed oversight over Free Trade Zones
  4. Limited understanding of TBML techniques used

These risk factors offer opportunities for criminals to exploit the trade system.

Recommendations

ACODE and GFI propose the following recommendations to enhance Uganda’s resilience against TBML:

  1. Raising awareness and providing training on TBML
  2. Implementing and enforcing beneficial ownership laws
  3. Data sharing and coordination among stakeholders
  4. Increasing support and funding to frontline agencies

Impact of Illicit Financial Flows

Illicit Financial Flows (IFFs), including TBML, are a significant challenge to the global development agenda. Uganda, for example, loses over UGX 2 trillion annually due to IFFs. Combating TBML is crucial to protecting the financial system and the economy.

Conclusion

GFI and ACODE express their gratitude to all individuals, institutions, and government agencies that contributed to the research and insights presented in the publication. They hope that the findings will foster productive dialogue, facilitate collaborative actions, and serve as a valuable resource for stakeholders working towards combating TBML in Uganda.