Financial Crime World

Trade-Based Money Laundering in Uganda: Vulnerabilities and Recommendations

July 19, 2023

For Immediate Release

The Advocates Coalition for Development and Development (ACODE) and Global Financial Integrity (GFI) have recently released a joint publication shedding light on the vulnerabilities of various sectors to Trade-Based Money Laundering (TBML) in Uganda. This comprehensive study aims to raise awareness, offer insights, and provide recommendations to enhance Uganda’s anti-money laundering regime.

Examining the Sectors Susceptible to TBML

Import and Export

  • Detailed examination of sectors vulnerable to TBML
  • Highlighting weaknesses in import and export processes

The Extractive Industry

  • Analysis of risks and challenges in this sector
  • Methods used to exploit weaknesses

Agriculture

  • In-depth investigation of agriculture sector’s TBML risks
  • Strategies for identifying and mitigating these risks

Commending Ugandan Government’s Efforts

  • Recognition of the government’s efforts to counter TBML
  • Implementation of policies, legislation, and institutional frameworks
  • Need for ongoing collaboration among stakeholders

Major Risk Factors and Recommendations

Significant TBML Risk Factors

  1. Corruption
  2. Insufficient collaboration
  3. Insufficient oversight in Free Trade Zones
  4. Limited comprehension of TBML techniques

Recommendations to Bolster Defenses Against TBML

  1. Awareness and training on TBML
  2. Implementation and enforcement of beneficial ownership laws and sanctions systems
  3. Encouraging data sharing and coordination
  4. Enhancing support and funding to frontline agencies

The Consequences of Illicit Financial Flows

  • Over UGX.2 trillion lost yearly through IFFs
  • Impact of illicit financial flows on economic stability and sustainable development

Appreciation and Media Contact

For media inquiries, please contact:

About Global Financial Integrity (GFI)

Global Financial Integrity (GFI) is a research organization focusing on illicit financial flows, corruption, illicit trade, and money laundering. www.gfintegrity.org

About ACODE

ACODE—an internationally recognized public policy research and advocacy think tank in Uganda—has been consistently ranked among the top think tanks in Uganda and globally in the last seven years. www.acode-u.org