Financial Crime World

Uganda’s Anti-Money Laundering Committee Faces Challenges

The Uganda Anti-Money Laundering Committee (UAMLC), a nine-agency body, has been working to develop a plan to combat money laundering and terrorist financing. Despite its efforts, the committee faces several challenges.

Developing a Work-Plan and Sub-Committees

According to sources, the UAMLC developed a work-plan and established five sub-committees to tackle specific areas:

  • Legal
  • Public awareness
  • Training and capacity building
  • Funding and technical assistance
  • Typologies, strategy, and statistics

The committee has also committed to initiating a process to develop a clear direction for its activities.

Challenges in Achieving Goals

However, the UAMLC faces difficulties in achieving its goals due to:

  • Uneven attendance at meetings
  • Lack of representation from several key agencies

Despite these challenges, the committee has managed to maintain a quorum and ensure that key stakeholders are adequately represented.

Need for Adequate Funding

To facilitate its work, the UAMLC requires adequate funding, which can only be achieved by giving it a legal status in the anti-money laundering law, according to sources.

Bank of Uganda’s Role

The Bank of Uganda (BOU) has been chairing the UAMLC since August 2000 and has spearheaded AML activities in the country. However, the BOU did not have any direct responsibility in terms of finalizing the AML Bill 2004 or formulating its implementation plan, as legislation is the responsibility of the Ministry of Finance.

Training and Capacity Building

BOU officials have continued to build their skills, particularly those of staff in the Supervision Department, who received training from the U.S. Treasury Department on AML examination procedures. However, enforcement efforts are limited due to the absence of an appropriate law.

Challenges in Other Areas

In other areas:

  • The Capital Markets Authority and Insurance Commission have issued AML guidelines for their respective sectors but have not assumed their regulatory and supervisory obligations.
  • There is no AML or CFT supervision of lawyers, accountants, casinos, real estate agents, or dealers in precious metals and stones.
  • The National Board for Non-Governmental Organizations (NGO Board) registers non-profit organizations, but the process is manual and understaffed.

Recommendations

In light of these challenges, the UAMLC needs to prioritize addressing these issues and ensuring that all relevant agencies are fully involved in its activities.