Uganda’s Anti-Money Laundering Laws and Regulations: A Mixed Bag
Kampala, Uganda - Uganda’s efforts to combat money laundering have been met with mixed results, according to a recent review by the Financial Action Task Force (FATF). While some aspects of the country’s anti-money laundering laws and regulations are deemed compliant or largely compliant, others fall short.
Assessment of Compliance
The FATF review assesses countries based on their implementation of 40 key recommendations aimed at preventing money laundering and terrorist financing. Uganda received ratings ranging from “compliant” to “non-compliant” across various areas.
Compliance Ratings
| Area | Rating |
|---|---|
| Assessing Risk and Applying a Risk-Based Approach | Largely Compliant (LC) |
| National Cooperation and Coordination | Largely Compliant (LC) |
| Money Laundering Offence | Largely Compliant (LC) |
| Financial Institution Secrecy Laws | Compliant (C) |
| Record Keeping | Largely Compliant (LC) |
| Correspondent Banking | Largely Compliant (LC) |
Partially Compliant Areas
- Confiscation and Provisional Measures
- Terrorist Financing Offence
- Politically Exposed Persons
- Customer Due Diligence
- Money or Value Transfer Services
Non-Compliant Areas
None identified in the FATF review.
Recommendations for Improvement
The FATF review highlights areas where Uganda’s anti-money laundering laws and regulations require improvement. The country should focus on strengthening its legislation and implementing effective measures to prevent money laundering and terrorist financing.
Some key recommendations include:
- Improving the definition of a money laundering offence
- Enhancing customer due diligence requirements
- Strengthening record-keeping requirements
- Implementing effective measures to prevent the misuse of politically exposed persons for money laundering
- Ensuring that financial institutions maintain accurate records to facilitate effective monitoring
By addressing these areas, Uganda can improve its anti-money laundering laws and regulations and effectively combat money laundering and terrorist financing.