Beneficial Ownership Transparency in Uganda: A Crucial Step Towards Combating Illicit Financial Flows
As Uganda continues to grapple with the challenges of illicit financial flows, the need for beneficial ownership transparency has never been more pressing.
New Laws Aim to Boost Transparency
In a bid to combat money laundering, corruption, and terrorism financing, the government has taken steps to implement laws that require companies to disclose their true owners. Section 21 of the Companies (Amendment) Act, 2022, requires every registered entity or arrangement in Uganda to record their beneficial owner(s) in a beneficial ownership register.
- The law also mandates that notice of the creation of the register be given to the Registrar of Companies within 14 days.
Why Beneficial Ownership Matters
Beneficial ownership transparency is critical in identifying and stemming illicit financial flows resulting from corruption, money laundering, terrorism financing, and other financial crimes. By limiting individuals from hiding behind shell companies, governments can deny them the benefits of illegal transactions that deny essential revenues to finance development programs.
Uganda’s Efforts to Combat Illicit Financial Flows
The government has taken a multifaceted approach to combating illicit financial flows, including introducing new laws and regulations to increase transparency. The Uganda Revenue Authority (URA) has also launched initiatives to identify and track suspicious transactions.
- “The implementation of beneficial ownership transparency is a crucial step towards combating illicit financial flows,” said Jane Nalwoga, an economist at the Advocates Coalition for Development & Environment.
- “By requiring companies to disclose their true owners, we can better track and prevent money laundering, corruption, and terrorism financing.”
A Path Forward
While there is still much work to be done, Uganda’s efforts towards beneficial ownership transparency offer a glimmer of hope in the fight against illicit financial flows. As the country continues to navigate these challenges, it is essential that all stakeholders come together to ensure the effective implementation of these laws and regulations.
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