Financial Crime World

Uganda’s Banking System Facilitates Illicit Financial Flows Worth Billions

Kampala, Uganda - A recent report has shed light on the significant role of Uganda in facilitating illicit financial flows (IFFs) worth billions of dollars from the Democratic Republic of Congo and South Sudan. The report reveals that Ugandan companies and individuals are involved in illegal activities such as the trade of natural resources like gold, oil, and timber, with the proceeds being laundered through the country’s banking system.

Illicit Activities in Uganda

Uganda has become a major transit hub for illicitly obtained goods, including ivory, pangolin scales, and indigenous teak wood. These criminal networks are able to move these valuable commodities almost unhindered through Uganda, using the country’s commercial banking sector to launder their illegal gains.

  • The report highlights corruption and lack of effective regulation in Uganda’s banking system as major enablers of IFFs.
  • Criminal networks use Uganda’s banking system to move and hide illicit funds.

Call for Action

The report calls for increased prosecution of financial crimes under the Anti-Money Laundering Act (AMLA 2013) and the Financial Institutions Act (2004).

“The office of the DPP must take a tough stance against these criminal networks and prosecute those who facilitate IFFs,” said a senior official at Global Financial Integrity, an international anti-corruption organization.

“Uganda’s banking system is being used to perpetuate corruption and instability in the region, and it’s time for the country to take action to stop this illegal activity.”

Environmental Protection and Enforcement

The report also highlights the need for increased environmental protection and enforcement of laws related to wildlife trafficking and logging.

  • Uganda is among the top ten most significant transit hubs for ivory in East and Central Africa.
  • Criminal networks use the country to move valuable wildlife products, including ivory, pangolin scales, and indigenous teak wood.

Conclusion

The report concludes by calling on the new Director of Public Prosecutions (DPP) to take a strong stance against corruption and IFFs, and to work with other law enforcement agencies to disrupt these criminal networks.