Uganda Tightens Grip on Money Laundering with String of Regulations and Acts
The Ugandan government has taken decisive steps to combat money laundering in the country, issuing a series of regulations and acts aimed at preventing financial crimes. Since 2015, a slew of anti-money laundering (AML) and anti-terrorism laws have been enacted, strengthening the country’s regulatory framework.
Recent Developments
Anti-Money Laundering (Amendment) Act 2017
The Anti-Money Laundering (Amendment) Act 2017 introduced stricter requirements for financial institutions to report suspicious transactions. The law also increased penalties for non-compliance and expanded the scope of reporting obligations.
New Regulations in 2022
In 2022, Uganda further strengthened its AML regime with the introduction of new regulations aimed at enhancing transparency and combating money laundering. The Anti-Money Laundering (Amendment) Regulations, 2022, introduced stricter customer due diligence requirements and increased the frequency of reporting transactions above certain thresholds.
Anti-Terrorism Efforts
The government has also taken steps to address terrorism financing, introducing:
- Anti-Terrorism (Amendment) Act, 2015: Widened the definition of terrorist activities and introduced new penalties for those found guilty.
- Anti-Terrorism Regulations, 2016: Provided guidance on reporting suspicious transactions and freezing assets suspected to be linked to terrorism.
Other Key Legislation
Financial Institutions Amendment Act, 2016
Strengthened regulations governing financial institutions.
Narcotic Drugs and Psychotropic Substances (Control) Act, 2016
Aimed to combat drug trafficking and related money laundering activities.
Data Protection and Privacy Act, 2019
Introduced stricter data protection requirements.
Additional Instruments
Several instruments have been issued under the Anti-Money Laundering Act, 2013, including:
- The Anti-Money Laundering (Amendment of Second Schedule) Instrument, 2020: Updated reporting obligations for financial institutions.
- Anti-Terrorism Regulations, 2023: Provided guidance on reporting suspicious transactions and freezing assets suspected to be linked to terrorism.
- Anti-Money Laundering Regulations, 2022: Introduced stricter customer due diligence requirements and increased the frequency of reporting transactions above certain thresholds.
Conclusion
These developments demonstrate Uganda’s commitment to combating money laundering and terrorism financing, and its efforts to bring its regulatory framework in line with international standards. As the country continues to strengthen its AML regime, it is likely that financial institutions will face increased scrutiny and reporting requirements, which should help to prevent illicit activities and maintain the integrity of the financial system.