MUTUAL EVALUATIONS
MUTUAL EVALUATION REPORT OF UGANDA-MAY 2016
The ESAAMLG
Council of Ministers adopted the Mutual Evaluation Report (MER) to the Republic of Uganda through a Round Robin Process On June 30, 2016. In Line With
The Procedures For ESAAMLG 2nd Round Of Mutual Evaluations And
Follow-up Process, The ESAAMLG Task Force Of Senior Officials Discussed And
Adopted The MER At Its Meeting Held In Arusha, Tanzania In April, 2016. This Is
The Second Mutual Evaluation To Be Conducted Under The International Standards
On Combating Money Laundering And The Financing Of Terrorism And Proliferation
[The Financial Action Taskforce (FATF) Recommendations] Issued In February 2012
And The Revised Methodology For Assessing Technical Compliance With The FATF
Recommendations And Effectiveness Of AML/CFT Systems, Issued In 2013.
This Report
Highlights The Anti-Money Laundering/Combating Terrorist Financing (AML/CFT)
Measures In Place In Uganda And Analyses The Level Of Compliance With The FATF
Recommendations And The Level Of Effectiveness Of Uganda’s AML/CFT Systems. It
Also Identifies The Gaps In Uganda’s AML/CFT Regime And Provides
Recommendations On How It Could Further Be Strengthened.
Key
Highlights Of The Report Are As Follows:-
- The
AML/CFT Legal And Institutional Frameworks Of Uganda Have Been Strengthened
Following The Enactment Of The Anti-Money Laundering Act In 2013 And The
Establishment Of The Financial Intelligence Authority. However, There Are Still
Significant Gaps In The Legal Framework And Apparent Conflicts Between The AMLA
And The Financial Institutions Act, 2004 With Respect To Suspicious Transaction
Reporting.
- Since The AML/CFT
Regime Is Relative New, There Is Low Level Of Effectiveness Especially In The
Area Of AML/CFT Supervision, Analysis And Use Of Financial Intelligence, ML/TF
Investigation And Prosecutions. Some Sectors Of Reporting Institutions Such As
Designated Non-financial Businesses And Professions, Are Yet To Start Implementing
The Laws And Regulations.
- On Uganda’s Risk
Profile, The Assessors Noted That The Country Has Not Yet Carried Out National
Or Sectoral ML/TF Risk Assessment. Hence, There Is Very Little Understanding Of
ML/TF Risks By The Authorities And Reporting Institutions (except For
Subsidiaries Of International Banks). As Such, Authorities And The Reporting
Institutions Have Not Put In Place Mitigating Measures Relevant And
Commensurate With The Nature And Severity Of Risks Facing The Country.
- The Report Further
Notes That Uganda Doesn’t Have The Necessary Legal Framework And Administrative
Arrangements To Facilitate Effective Implementation Of Targeted Financial
Sanctions Related To Terrorism, Terrorist Financing And Proliferation In
Compliance With The United Nations Security Council Resolutions 1267 And 1373,
Including The Successor Resolutions.
- Absence Of Legal
Provisions In The AMLA And The Respective Sectoral Laws Which Designates
Authorities With The Responsibility For AML/CFT Supervision And Lack Of
Administrative Sanctions May Have Contributed To The Low Level Of Compliance By
Reporting Institutions.
- On The Way Forward,
The Report Urges Uganda, As A Matter Of Priority, To Carry Out National Or
Sectoral Money Laundering And Terrorism Financing (ML/TF) Risk Assessment,
Develop An Informed Risk-based Action Plan Commensurate With The Identified
ML/TF Risks And Deficiencies Highlighted In This MER And Implement The
Recommendations.
Posted: 09, Jan 17