UGANDA’S MONEY LAUNDERING THREAT LEVEL RISES TO HIGH AS SUSPICIOUS TRANSACTIONS SOAR
High-Level Threat Assessment
Kampala, Uganda - The National Resistance Authority (NRA) has released a threat assessment rating Uganda’s money laundering threat level as High. This decision was made following a significant spike in suspicious transactions and corresponding values across various sectors.
Suspicious Transactions on the Rise
The assessment reveals that large numbers of suspicious transactions have been detected across banking, real estate, casinos, and dealers in precious metals and stones. The financial sector, particularly banks and money service businesses, has been identified as a key area for laundering proceeds from crimes such as corruption, embezzlement, fraud, and tax crimes.
Real Estate and Trade Arrangements Pose Risk
Real estate was found to be a key sector for laundering huge amounts of ill-gotten funds. Additionally, Uganda’s trade arrangements pose a significant risk of money laundering and terrorism financing due to predicate offences linked to drug trafficking, wildlife offences, human trafficking, and smuggling of precious metals and stones.
External Threat Assessment Highlights Key Partners
The country’s main trading partners, including Kenya, India, China, United Arab Emirates, South Sudan, Democratic Republic of Congo, and Tanzania, were found to have predicate offences linked to these illegal activities.
Strengthening Defenses Against Money Laundering and Terrorism Financing
“We are deeply concerned about the increasing threat of money laundering in Uganda,” said a senior official at the NRA. “The fact that many anti-money laundering controls are in place does not necessarily mean that we are immune to this threat. We must continue to work together to strengthen our defenses against money laundering and terrorism financing.”
Weaknesses Identified
The assessment also highlighted weaknesses in the capacity of regulatory and supervisory bodies, as well as ineffectiveness of existing frameworks, which affect the country’s ability to combat money laundering and terrorism financing.
Threat Rating Level: High
The threat rating level is based on a combination of factors, including the severity of the threat, the likelihood of it occurring, and the potential impact. The High threat rating level indicates that Uganda is at high risk of experiencing significant financial losses and reputational damage due to money laundering and terrorism financing.
Recommendations
To strengthen Uganda’s defenses against money laundering and terrorism financing, the NRA has recommended:
- Enhancing the capacity of regulatory and supervisory bodies
- Strengthening anti-money laundering controls in key sectors
- Improving information sharing between authorities
- Increasing public awareness about the risks of money laundering and terrorism financing
Conclusion
The report is a wake-up call for Uganda’s financial sector to take immediate action to prevent money laundering and protect the country’s economy.