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Uganda Seeks Greater Transparency in Beneficial Ownership
Kampala, Uganda - In a bid to combat corruption and illicit financial flows, the Advocates Coalition for Development and Environment (ACODE) has joined forces with Global Financial Integrity (GFI) to produce a series of factsheets on beneficial ownership transparency in Uganda.
Understanding the Importance of Beneficial Ownership Transparency
The factsheets, launched in July 2023, aim to shed light on the country’s beneficial ownership laws and highlight the crucial role played by various stakeholders in the process. The first part of the series examines the concept of beneficial ownership information disclosure in Uganda, providing a clear understanding of its importance in combating illicit financial flows, promoting transparency, and preventing corruption.
Addressing Gaps and Challenges in Beneficial Ownership Information Disclosure
According to GFI, the factsheets are designed to address the existing gaps and challenges in Uganda’s beneficial ownership information disclosure mechanisms, with a view to enhancing their effectiveness. The organization notes that collecting beneficial ownership information is key to combatting tax evasion, corruption, money laundering, shell companies, and terrorism financing.
Understanding Beneficial Ownership Laws
Beneficial ownership refers to the ultimate owner or controller of a company or entity, who may not necessarily be the one recorded on public records. In Uganda, beneficial ownership laws are designed to ensure that companies disclose accurate information about their owners, which can help prevent illicit activities such as money laundering and tax evasion.
However, GFI notes that Uganda’s beneficial ownership laws have several gaps and challenges, including inadequate disclosure requirements and insufficient enforcement mechanisms. The organization argues that strengthening these laws is essential for promoting transparency and accountability in the country’s financial system.
Fighting Illicit Financial Flows
Illicit financial flows (IFFs) refer to the transfer of money or assets out of a country without proper authorization, often through corrupt means. In Uganda, IFFs have been linked to various forms of corruption, including embezzlement and tax evasion.
GFI notes that beneficial ownership transparency is critical in preventing IFFs, as it allows authorities to identify and track the movement of illicit funds. The organization argues that by strengthening beneficial ownership laws and disclosure mechanisms, Uganda can reduce its vulnerability to IFFs and promote a more transparent financial system.
Key Recommendations
In its factsheets, GFI recommends several key steps for improving beneficial ownership transparency in Uganda:
- Strengthening Disclosure Requirements: Ensure accurate information about beneficial owners is disclosed.
- Improving Enforcement Mechanisms: Prevent non-compliance with beneficial ownership laws.
- Enhancing Public Access to Beneficial Ownership Information: Make it easily accessible to the public.
- Providing Training and Capacity-Building: Train stakeholders on beneficial ownership laws and disclosure mechanisms.
By implementing these recommendations, GFI believes that Uganda can reduce its vulnerability to illicit financial flows and promote a more transparent and accountable financial system.