Clari5 Market Insights


Parliament of Uganda

New Bills to Counter ML / TF

Uganda Passes New Bills to Counter Money Laundering and Terrorism Financing

By when must banks comply with the mandate?

With immediate effect.

Why has Parliament of Uganda issued the new mandate?

In 2016, the Mutual Evaluation Report of Uganda was adopted by the FATF with several recommendations and showed Uganda’s level of compliance as very low. In 2020, Uganda was placed on the grey list by FATF suggesting significant shortfalls in tackling money laundering. In January 2022, FIA’s executive director revealed that Uganda would be blacklisted by FATF unless the government made certain legal and regulatory interventions against money laundering by May 2022. In order to comply with FATF recommendations 7, 24, 25, the Parliament on 30th August, 2022 passed six new bills to address existing gaps in the law.

Highlights of the mandate

The Anti-Money Laundering (Amendment) Bill, 2022
Empowers the FIA and other supervisory authorities to levy administrative penalties for breach of the provisions of the Act and for related matters.

The Trustees Incorporation (Amendment) Bill, 2022
Real estate is one of the targeted sectors where illicitly acquired money is ‘made to look clean’. The bill’s objective is to widen the nature of trustees required to register with the minister and to define beneficial owners.

The Cooperative Societies (Amendment) Bill, 2022
Introduces clauses on ‘beneficial ownership’, where society is required to reveal who the real owners of the organization are if they are not the registered directors or owners.

The Anti-Terrorism (Amendment) Bill, 2022
The bill provides for the offence of proliferation financing and other related matters. Any person / organization that breaks the law are liable on conviction, to imprisonment not exceeding 20 years / a fine not exceeding 500,000 currency points (Shs10 billion) / both.

How Clari5 helps FIs in Uganda quickly comply with the new mandates

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