Financial Crime World

Beneficial Ownership Transparency in Uganda: A Collaborative Effort

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Introduction

Beneficial Ownership Transparency (BOT) is a crucial aspect of good governance, and its implementation requires collaboration among various stakeholders. The recent workshop on BOT in Uganda aimed to facilitate this cooperation by bringing together government representatives, private sector entities, and other relevant parties.

Importance of BOT

  • BOT is essential for preventing money laundering, combating corruption, and promoting transparency in the economy.
  • It helps to ensure that companies are accountable for their actions and that those who own or control them are identified.

Background on EITI Implementation and Need for BO

The National Coordinator, UGEITI (Uganda Extractive Industries Transparency Initiative), provided background information on the implementation of the Extractive Industries Transparency Initiative (EITI) in Uganda. The presentation highlighted the need for a strong legal and regulatory framework to support BOT.

Key Points

  • EITI implementation is crucial for promoting transparency in the extractive industries.
  • A robust legal and regulatory framework is necessary to ensure effective BOT implementation.

Presentation on Beneficial Ownership Transparency in Kenya

A presentation was made on the legal and regulatory framework of beneficial ownership transparency in Kenya. The speaker highlighted the challenges faced during implementation, including:

Key Challenges

  • Difficulty in identifying beneficial owners due to lack of clarity on who constitutes a beneficial owner.
  • Limited cooperation from some companies in providing required information.

Moderated Discussion

The workshop included several moderated discussions on various topics related to BOT. Some of the key points discussed include:

Topics Discussed

  • Seeking consent from beneficial owners for disclosure of their information.
  • Definition and identification of Politically Exposed Persons (PEPs).
  • Thresholds for disclosure, including real estate sector and betting companies.

Presentation on Amended Laws on Beneficial Ownership Transparency

A presentation was made on the amended laws related to BOT. The speaker provided an overview of the new laws and their provisions, including:

Key Provisions

  • Definition of beneficial ownership.
  • Legal requirements for BO disclosure.
  • Next steps: development of regulations.

Moderated Discussion (II)

The workshop included another moderated discussion on various topics related to BOT. Some of the key points discussed include:

Topics Discussed

  • Definition and legal requirements for beneficial ownership.
  • EU Court ruling on beneficial ownership.
  • Inter-agency cooperation for effective implementation.

Way Forward

The participants agreed that it is not illegal to be a beneficial owner but emphasized the need for information in case of law enforcement. This highlights the importance of balancing individual rights with the need for transparency and accountability.

Key Points

  • Effective implementation of BOT requires a balance between individual rights and public interest.
  • Collaboration among stakeholders is essential for successful implementation.

Presentation of Draft Regulations by FPC

The Financial Planning Committee (FPC) presented draft regulations on beneficial ownership. The speaker provided an overview of the provisions, including:

Key Provisions

  • Competent authorities responsible for maintaining the BO register.
  • Form 1 and 2 for BO details and notice of change.

Moderated Discussion (III)

The workshop included a final moderated discussion on various topics related to BOT implementation. Some of the key points discussed include:

Topics Discussed

  • Implementation challenges, including technological infrastructure and human resources.
  • Next steps beyond regulations, including stakeholder engagement and capacity building.

Closing Remarks

The workshop concluded with closing remarks from the organizers and participants. The meeting aimed to facilitate a collaborative effort among stakeholders to ensure that the necessary laws and regulations are in place for effective BOT implementation in Uganda.