Uganda Steps Up Efforts to Combat Terrorist Financing Amid Rising Concerns

In a bid to strengthen its defenses against money laundering and terrorist financing, Uganda has unveiled a new National Anti-Money Laundering (AML) and Countering Financing of Terrorism (CFT) strategy. The five-year plan aims to enhance the country’s ability to detect and prevent illicit financial activities that could fund criminal networks and terrorism.

Key Objectives

The strategy focuses on six key objectives:

• Strengthening compliance with international standards set by the Financial Action Taskforce (FATF)
• Enhancing regional and international cooperation
• Improving the investigation and prosecution of AML/CFT/PF cases
• Strengthening the legal and regulatory framework to combat money laundering, terrorist financing, and proliferation financing
• Building capacity among stakeholders to implement AML/CFT/PF requirements
• Disrupting the financial networks of terrorist organizations and other criminal groups through targeted financial sanctions

Background

The government’s move comes in response to a Mutual Evaluation Report (MER) 2016 and National Risk Assessment (NRA) Report 2017 that highlighted gaps in Uganda’s implementation of anti-money laundering, counter-terrorism financing, and proliferation financing measures. The reports identified weaknesses in the country’s legal and regulatory framework, as well as inadequate capacity among stakeholders to implement AML/CFT/PF requirements.

Combating Proliferation Financing

Experts say a robust legal and administrative framework is crucial in combating proliferation financing, which is a growing concern globally. To address this issue, Uganda has amended its Anti-Terrorism Act (2002) to include an offence of proliferation financing. The Ministry of Internal Affairs has also issued guidelines on the implementation of Targeted Financial Sanctions (TFS), aimed at disrupting the financial networks of terrorist organizations and other criminal groups.

Impact

The strategy is seen as a major step forward in Uganda’s efforts to combat terrorist financing and protect its citizens from the threat of terrorism. With the country’s economy heavily reliant on international trade and investment, the government is under pressure to ensure that it meets global standards in combating money laundering and terrorist financing.

Conclusion

Uganda’s new National AML/CFT strategy marks a significant step forward in the country’s efforts to combat money laundering and terrorist financing. The strategy’s focus on strengthening compliance with international standards, enhancing regional and international cooperation, and building capacity among stakeholders is crucial in protecting the country’s economy and citizens from the threat of terrorism.