Financial Crime World

Ugandan Financial Institutions Face Risk of Money Laundering and Terrorist Financing, New Reports Reveal

In a bid to strengthen its financial sector’s resilience against illegal activities, Uganda has conducted two comprehensive risk assessments: the National Risk Assessment (NRA) 2023 and the Terrorism Financing Risk Assessment for Non-Profit Organizations (TFRA) 2023. These reports provide an in-depth analysis of the country’s vulnerabilities to money laundering and terrorist financing.

Key Findings

  • The NRA 2023 identifies the period from 2017 to 2020 as a high-risk period for money laundering activities.
  • The TFRA 2023 highlights the need for increased vigilance against terrorism financing by Non-Profit Organizations (NPOs) in Uganda.

Assessment Methodology

The assessments were conducted in line with Financial Action Taskforce (FATF) recommendations and guidelines. The NRA 2023 aims to identify, assess, and understand the money laundering and terrorist financing risks faced by Uganda’s financial institutions. The report provides a detailed analysis of the country’s vulnerabilities and recommends targeted measures to mitigate these risks.

TFRA 2023: Assessing Terrorism Financing Risk

The TFRA 2023 focuses on assessing the terrorism financing risk posed by NPOs in Uganda. The report identifies specific organizations that are more vulnerable to being abused for terrorist financing purposes and recommends proportionate measures to protect them from such abuse.

Implications and Next Steps

The findings of these reports will inform the development of targeted policies and regulations aimed at reducing the risks associated with money laundering and terrorist financing in Uganda’s financial sector. They also underscore the importance of continuous monitoring and assessment to stay ahead of emerging threats.

  • The reports will guide the formulation of policies and regulations to mitigate the identified risks.
  • Continuous monitoring and assessment are crucial to staying ahead of emerging threats in the financial sector.