Strengthening Anti-Money Laundering and Counter-Terrorism Financing in Uganda

Proposed Amendments to Regulations

The Ugandan government has proposed several amendments to regulations governing anti-money laundering (AML) and countering the financing of terrorism (CFT). These changes aim to enhance the effectiveness of the country’s AML/CFT framework, improve supervision, and impose stricter compliance measures.

Key Changes

• Identification of High-Risk Countries: The Authority is required to identify countries with high risks of money laundering and terrorism financing. Accountable persons will be expected to apply prescribed measures when dealing with transactions involving these countries.
• Directives from the Authority: The Authority can issue directives to accountable persons, requiring them to comply with regulations. Non-compliance may result in fines.
• Countermeasures: In response to identified risks, the Authority may require accountable persons to implement countermeasures, such as:
  • Enhanced due diligence
  • Reporting mechanisms
  • Restrictions on business relationships
• Supervision of Accountable Persons: Supervisory authorities are empowered to:
  • Collect information
  • Compel provision of documents
  • Impose sanctions for non-compliance

Rationale Behind the Proposed Amendments

The proposed amendments aim to strengthen Uganda’s AML/CFT framework by:

• Enhancing the Authority’s powers and capabilities
• Increasing supervision and oversight
• Imposing stricter compliance measures to prevent money laundering and terrorism financing

These changes are expected to improve the effectiveness of Uganda’s AML/CFT efforts, reducing the risk of financial crimes and promoting a safer and more stable financial system.