Uganda’s Anti-Money Laundering Regulations Get Tougher
The Ugandan government has recently introduced several amendments to its anti-money laundering regulations, aimed at strengthening the country’s fight against financial crimes.
Strengthened Penalties for Non-Compliance
According to the new regulations, accountable persons who fail to comply with the requirements of the law will face stiff penalties. Specifically:
- Natural persons can be fined up to 12,500 currency points
- Corporate entities can be fined up to 25,000 currency points
Enhanced Powers for Financial Intelligence Authority (FIA)
The FIA has been empowered to issue directives to supervisory authorities and accountable persons who contravene the law. Failure to comply with these directives can result in:
- Fines of up to 25,000 currency points for supervisory authorities
- Fines of up to 2,500 currency points for natural persons
Identification of High-Risk Countries
The FIA has also been given the power to identify high-risk countries in terms of money laundering and terrorism financing, and prescribe measures that accountable persons must take when dealing with customers or transactions from these countries. Failure to comply with these measures can result in:
- Fines of up to 5,000 currency points for natural persons
- Fines of up to 25,000 currency points for corporate entities
New Countermeasures to Prevent Money Laundering and Terrorism Financing
The regulations introduce new countermeasures to prevent money laundering and terrorism financing, including:
- Requirements for financial institutions to apply enhanced due diligence measures
- Introduction of enhanced reporting mechanisms
- Refusal to establish subsidiaries or branches in high-risk countries
- Limitation of business relationships with these countries
Enhanced Powers for Financial Intelligence Authority (FIA)
The FIA has been given powers to enter into contracts and agreements with government agencies and other organizations to collect information from databases and perform its duties under the law.
Strengthening Uganda’s Anti-Money Laundering Regime
The amendments are aimed at strengthening Uganda’s anti-money laundering regime and preventing the country from being used as a haven for financial criminals.