Uganda’s Vulnerability to Trade-Based Money Laundering: A Joint Study by ACODE and Global Financial Integrity

Publishers

• International advocacy groups: Advocates Coalition for Development and Development (ACODE) and Global Financial Integrity (GFI)

Date

July 19, 2023

Introduction

The joint publication by ACODE and GFI highlights Uganda’s vulnerability to Trade-Based Money Laundering (TBML) and its consequences for the economy and development.

Overview of TBML

• TBML: disguises the proceeds of crime through legitimate trade transactions
• Threatens global economies with its complexity and evasiveness
• Sectors susceptible in Uganda: import and export industries, extractive industry, and agriculture

Sectors Vulnerable to TBML

1. Import and Export Industries

• Criminals exploit inherent complexities
• Vast networks for illicit financial activities

2. Extractive Industry

• Lack of transparency
• Limited regulatory oversight

3. Agriculture

• Complex supply chains
• Weak regulatory framework

Ugandan Government’s Efforts

• Addressing TBML through policies, legislation, and institutional frameworks
• Continued collaboration important among stakeholders

Challenges and Recommendations

Challenges

• Corruption
• Lack of coordination among stakeholders
• Limited understanding of TBML and money laundering techniques
• Relaxed oversight in Free Trade Zones

Recommendations

• Raising awareness and providing training
• Implementing beneficial ownership laws and enforcing sanctions systems
• Data sharing and coordination among stakeholders
• Increasing support and funding to frontline agencies

Impact of Illicit Financial Flows (IFFs)

• Over UGX.2 trillion per year in Uganda
• Deprives development budgets of vital resources
• Consequence of corruption and impunity

Conclusion

• Valuable guide for combating TBML in Uganda
• Encouraging collaborative actions among policymakers, practitioners, and stakeholders

Contacts

• Jane Namubiru (ACODE): jane.namubiru@acode-u.org / namulorri@gmal.com
• Dennis Kabia (GFI): dkabia@gfintegrity.org

About ACODE

• Independent public policy research and advocacy think tank
• Based in Uganda
• Ranked among top Ugandan and global think tanks

About Global Financial Integrity (GFI)

• Washington, D.C.-based research and advocacy organization
• Focused on illicit financial flows, corruption, illicit trade, and money laundering
• For more information, visit https://gfintegrity.org