Financial Crime World

Uganda Enacts Stringent CFT Regulations to Combat Money Laundering and Terrorism Financing

The Ugandan government has taken a significant step in strengthening its fight against money laundering and terrorism financing by enacting various regulations under different acts. The Anti-Money Laundering (Amendment) Act 2017 is one such legislation that aims to enhance the country’s capacity to detect and prevent financial crimes.

Strengthening Anti-Money Laundering Laws

The Act, which came into effect in 2018, introduced new measures to improve the reporting of suspicious transactions and enhanced the powers of law enforcement agencies to investigate and prosecute money laundering cases. The regulations also established a new agency responsible for overseeing the implementation of anti-money laundering laws.

Combating Terrorism Financing

In addition to the Anti-Money Laundering (Amendment) Act, Uganda has enacted several other regulations aimed at combating terrorism financing. These include:

  • Anti-Terrorism (Amendment) Act 2015: Introduced new measures to prevent the misuse of financial institutions
  • Anti-Terrorism Regulations 2016: Established a new agency responsible for investigating and prosecuting terrorism-related cases

Regulating Narcotic Drugs and Psychotropic Substances

The passage of the Narcotic Drugs and Psychotropic Substances (Control) Act 2016 has also contributed significantly to Uganda’s efforts in combating money laundering and terrorism financing. This act aims to regulate the production, trade, and possession of controlled substances and introduces new measures to prevent the diversion of these substances for illicit purposes.

Enhancing Financial Institution Supervision

The Financial Institutions Amendment Act 2016 introduced new measures to enhance the supervision and regulation of financial institutions and requires them to implement anti-money laundering and combating the financing of terrorism (CFT) measures.

Recent Developments

In recent years, Uganda has taken further steps to strengthen its CFT regulations. For example:

  • Anti-Money Laundering (Exchange of Information) Regulations 2018: Introduced new measures to enhance information sharing between financial institutions and law enforcement agencies
  • Data Protection and Privacy Act 2019: Aims to protect individuals’ personal data and prevent its misuse for illegal activities

Ongoing Efforts

Uganda has also enacted several other regulations aimed at combating money laundering and terrorism financing, including:

  • Anti-Money Laundering (Amendment) Regulations 2022: Introduced new measures to enhance the reporting of suspicious transactions
  • Anti-Terrorism (Amendment) Regulations 2023: Aims to strengthen the country’s counter-terrorism regime

Implementing International Standards

The Ugandan government has also taken steps to implement international standards on CFT, including: