Financial Crime World

Uganda’s Anti-Money Laundering Regulations: New Rules for Accountable Persons

The Financial Intelligence Authority in Uganda has issued new Anti-Money Laundering Regulations, 2015. These regulations aim to prevent money laundering and terrorist financing, outlining the roles and responsibilities of accountable persons in the financial sector.

Part I – Preliminary

1.1 Title

These Regulations may be cited as the Anti-Money Laundering Regulations, 2015.

1.2 Interpretation

  • ** Act**: The Anti-Money Laundering Act, 2013.
  • ** Authority**: The Financial Intelligence Authority established under Part IV of the Act.
  • (See definitions below regarding “business relationship,” “customer,” “beneficiary financial institution,” “cross-border wire transfer,” “domestic wire transfer,” “intermediary financial institution,” “legal arrangement,” “numbered account,” “ordering financial institution,” “originator,” and “wire transfer.”)

Part II – Registration of Accountable Persons

2.1 Register of Accountable Persons

  • (1) The Authority shall establish and maintain a register of accountable persons.
  • (2) The register shall be kept in electronic form or some other appropriate form determined by the Financial Intelligence Authority Board.
  • (3) The Authority shall record in the register details of all accountable persons registered.
  • (4) The register shall be made available to the public and shall be posted on the Authority’s website.

2.2 Registration of Accountable Persons

  • (1) Every accountable person shall register with the Authority, within one year from the commencement of these Regulations, or such other period as the Authority may specify.
  • (2) An accountable person shall apply for registration using Form 1 in the Schedule.
  • (3) An accountable person shall provide the following details to the Authority during registration:
    • Name of the accountable person.
    • Physical, postal, and email address of the accountable person.
    • Status and proof of registration or incorporation of the accountable person, if the accountable person is not an individual.
  • (4) Accountable persons shall notify the Authority of any changes to their particulars within fifteen days after the change using Form 2 in the Schedule.

Part III – Money Laundering Control Officers

3.1 Money Laundering Control Officer

  • (1) Every accountable person who maintains accounts for clients or customers shall appoint or designate a money laundering control officer.
  • (2) An accountable person shall notify the Authority of the appointment or designation using Form 3 in the Schedule.
  • (3) A person shall not be appointed a money laundering control officer unless they:
    • Occupy a senior managerial position.
    • Possess sufficient professional experience and competence in the business of the accountable person.
  • (4) Internal auditors and chief executive officers, or persons of a similar rank, do not qualify to be appointed as money laundering control officers.
  • (5) Where a person ceases to be a money laundering control officer, the accountable person shall notify the Authority within fifteen days after the person ceases.

3.2 Role of Money Laundering Control Officer

  • (1) The role of a money laundering control officer is:
    • To act as the liaison person between the accountable person and the Authority in matters relating to coordination and compliance to anti-money laundering and combating terrorism financing.
    • To develop and implement systems, mechanisms, and procedures to ensure that staff immediately report any suspicious money laundering or financing of terrorism activity.
    • To notify the Authority on behalf of the accountable person of any suspicious money laundering or financing of terrorism activity.
  • (2) Accountable persons shall ensure that all staff report any suspicious activity relating to money laundering and terrorist financing to the money laundering control officer.
  • (3) An accountable person shall provide the money laundering control officer access to any information which may be of assistance in discharging their roles under these Regulations.

Part IV – Money Laundering Prevention Measures

4.1 Risk Assessment

  • (1) An accountable person shall conduct anti-money laundering and terrorism financing risk assessment on a regular basis to identify, assess, monitor, manage, and mitigate risks associated with money laundering and terrorist financing.
  • (2) Accountable persons shall document the results of the risk assessment and make them available to competent authorities upon request.
  • (3) An accountable person shall provide the results of the risk assessment to the Authority within forty-eight hours after conducting the assessment.
  • (4) In conducting risk assessments, accountable persons shall develop and implement mechanisms and systems to identify and assess money laundering and terrorism financing risks consistent with the nature of their business and size.
  • (5) Based on the results of the risk assessment, accountable persons shall develop and implement policies, controls, and procedures to mitigate and manage identified risks.
  • (6) Accountable persons shall put in place policies, controls, and procedures for monitoring the implementation of policies, controls, and procedures.
  • (7) Accountable persons shall update their risk assessment policies, controls, and procedures whenever necessary, taking into account changes in their business such as new markets or new technologies.

4.2 Risk Assessment Measures in Respect of New Technologies and Products

  • (1) Accountable persons shall take reasonable measures to prevent the use of new technologies for money laundering and terrorism financing purposes.
  • (2) Prior to the introduction of a new product, business practice, or new technology, accountable persons shall conduct anti-money laundering and terrorism financing risk assessment.
  • (3) Accountable persons shall provide the results of the risk assessment to the Authority within forty-eight hours after conducting the assessment.

Definitions

  • Business Relationship: A relationship that a financial institution establishes and maintains with its customers, intermediaries, and beneficiary financial institutions, including correspondent banking relationships.
  • Customer: Any individual or entity that holds an account with a financial institution or that is the beneficial owner of a numbered account or safe deposit box.
  • Beneficiary Financial Institution: The financial institution in whose name the transaction is conducted or the financial institution on behalf of which the transaction is made.
  • Cross-border Wire Transfer: A wire transfer of funds involving two or more different financial institutions located in different jurisdictions.
  • Domestic Wire Transfer: A wire transfer of funds between two different accounts held with the same financial institution.
  • Intermediary Financial Institution: A financial institution through which another financial institution conducts a cross-border wire transfer.
  • Legal Arrangement: A legal relationship that obliges two or more parties to act in accordance with the terms of that arrangement.
  • Numbered Account: An account that is identified by a number or a letter assigned by a financial institution.
  • Ordaining Financial Institution: The financial institution that originates and transmits the instructions for wire transfers.
  • Originator: The person or financial institution that instructs the financial institution to initiate a wire transfer.
  • Wire Transfer: An electronic transfer of funds between two or more accounts at different financial institutions.