Uganda will join a group of Financial Intelligence Units that investigate monetary movements of illegal sources like terrorists in case the Anti-Money Laundering Bill is passed.
According to the deputy Government spokesperson Shaban Bantariza, Cabinet approved the passing of this bill in order to curb free movement of money from criminal activities like drug trafficking or corruption in Uganda.
“Once this Bill is passed, Uganda will get into international cooperation with agencies that investigate money -laundering and terrorist financing but we shall also be admitted into Egmont Group, a united body of 155 financial intelligence units,” Col Bantariza told journalists at the Uganda Media Centre in Kampala this week.
According to Uganda Banker’s Association, Anti-money laundering refers to a set of procedures, laws or policies designed to stop the practice of generating income through illegal actions. Such practices are prone in financial institutions where illegal money is changed into clean money and put into service.
According Col Bantariza, government has already established the Financial Intelligence Authority (FIA) as one of the strategies to stop money laundering and similar crimes such as terrorist financing.
However, assessment reports from FIA indicate that money laundering tracking systems have not been implemented effectively. The report also indicates that there is still an issue of capacity building and risks of financial integrity.
The report again indicates that the few suspects who have been caught have been released by the court due to lack of enough evidence because most of the reported cases base on suspicions.
In 2015 after a transaction of Shs5bn in United Bank of Africa was made, 18 people were arrested and taken to Anti-Corruption Court. Unfortunately, the case was withdrawn b yDirectorate of Public Prosecutions DPP due to lack of enough evidence.