Financial Crime World

Title: Trade-Based Money Laundering in Uganda: Risks and Recommendations

Subtitle: ACODE and Global Financial Integrity joint publication on identifying vulnerabilities and potential solutions

Date: July 19, 2023

Advocates Coalition for Development and Development (ACODE) and Global Financial Integrity (GFI) have released a new joint report, “Trade-Based Money Laundering in Uganda,” which sheds light on sectors vulnerable to money laundering through trade transactions and uncovers risk factors facilitating such activities. The report also proposes recommendations for enhancing Uganda’s anti-money laundering regime.

ACODE and GFI Collaboration

This publication highlights the need for a comprehensive understanding of TBML and its associated risks in key industries, namely import and export, the extractive industry, and agriculture. Acknowledging the Ugandan government’s efforts to combat this issue, the report emphasizes continued collaboration among government agencies, financial institutions, and civil society organizations:

Key Findings and Recommendations

  1. High-Risk Industries: The report identifies high-risk sectors and the necessity of increased awareness:

    • Import and export
    • Extractive industry
    • Agriculture

  2. Risk Factors: Significant risk factors enabling TBML activities:

    • Widespread corruption
    • Lack of coordination among stakeholders
    • Relaxed oversight over Free Trade Zones
    • Limited understanding of TBML and its techniques

Recommendations for Mitigating Challenges:

  1. Awareness Campaigns and Training: Train private and public actors on TBML.
  2. Beneficial Ownership Laws: Implement and enforce these laws.
  3. Collaboration: Engage in data sharing and information exchange.
  4. Frontline Agency Support: Enhance support and funding for relevant agencies.

Quote: Dennis Kabia, GFI Director of Research: “Illicit Financial Flows are a significant challenge to the global development agenda, and Uganda loses substantial resources to such flows each year. Trade-Based Money Laundering is an increasingly used method for these illicit activities, as it goes unnoticed as legitimate trade. Our findings and recommendations aim to foster collaborative actions, productive dialogues, and offer valuable resources to key stakeholders committed to combatting TBML in Uganda and beyond.”

Media Inquiries:

About ACODE: An independent Ugandan public policy research and advocacy think tank, acode-u.org

About GFI: A Washington, DC-based think tank addressing issues related to illicit financial flows, corruption, illicit trade, and money laundering, gfintegrity.org