Ugandan Companies Used to Facilitate Money Laundering and Terrorist Financing

Kampala, Uganda - The Ugandan government has raised concerns about the misuse of companies in the country to facilitate money laundering and terrorist financing.

A Significant Number of Companies Misused for Criminal Activities

According to statistics from the Uganda Registration Services Bureau (URSB), there are over 325,000 active companies in Uganda. While a significant number of these companies are used for legitimate purposes, some have been misused by criminals to launder proceeds of crime and hide their identities.

Forms of Misuse

The misuse of companies can take various forms, including:

• Using legitimate corporations to invest criminal proceeds or mask identities
• Using shell companies to hide beneficial ownership
• Using real estate companies to launder money

Real-Life Examples

In a recent case, it was established that a company registered in Uganda was used by an accused person to conceal his ownership of properties acquired using stolen funds. The company had no physical existence or business activity and was only used to conceal the accused person’s ownership.

Another case involved an accountant who used her employer’s company to facilitate money laundering activities during her employment.

Government Emphasis on Compliance

The government has emphasized the need for companies to comply with anti-money laundering regulations and ensure that they do not inadvertently facilitate criminal activities. To achieve this, it is essential for companies to:

• Conduct thorough due diligence on clients and business partners
• Implement effective internal controls and risk management strategies
• Report suspicious transactions and maintain accurate records

By taking these measures, companies can help prevent the misuse of their entities for money laundering and terrorist financing purposes, ultimately contributing to a safer and more transparent financial system in Uganda.