Uganda’s war on il­licit fi­nan­cial flows gets global recog­ni­tion

The East African - - NEWS - By BERNARD BUSUULWA The Eastafrican

UGANDA HAS has now been re­moved from the money laun­der­ing list of shame.

This is likely to shift the coun­try’s fo­cus from a fire­fight­ing com­pli­ance strat­egy to ag­gres­sive en­force­ment of anti-money laun­der­ing rules.

This land­mark de­ci­sion was made dur­ing a tech­ni­cal re­view ses­sion con­vened by the Fi­nan­cial Ac­tion Task Force (FATF) in Ar­gentina at the be­gin­ning of this month.

The in­sti­tu­tion holds a global man­date for co-or­di­nat­ing and reg­u­lat­ing ef­forts aimed at tack­ling money laun­der­ing and ter­ror­ism fi­nanc­ing within its global mem­ber­ship.

Uganda was placed on the FATF list of shame in Fe­bru­ary 2014, which is also known as the light greylist. The list has the names of mem­ber coun­tries that have weak­nesses in their anti money laun­der­ing regimes, par­tic­u­larly in ar­eas of leg­is­la­tion and en­force­ment.

Coun­tries on the list are Bos­ni­a­herze­gov­ina, Ethiopia, Iraq, Sri Lanka, Syria, Trinidad and Tobago, Tu­nisia, Van­u­atu and Ye­men.

This list lies one step above the global money laun­der­ing black­list — a group of coun­tries sub­jected to fi­nan­cial sanc­tions for fail­ure to com­ply with FATF rules and of­fi­cially ex­cluded from the in­ter­na­tional fi­nan­cial sys­tem. Ex­clu­sion from the in­ter­na­tional fi­nan­cial sys­tem con­strains a coun­try’s banks from car­ry­ing out in­ter­na­tional trans­ac­tion such as Elec­tronic Funds Trans­fers (EFTS) and Let­ters of Credit tra­di­tion­ally used in im­port and ex­port trade deals and worker re­mit­tances. Coun­tries on the black­list are North Korea, Iran and Rus­sia.

Ac­cord­ing to a source at Uganda’s Fi­nan­cial In­tel­li­gence Authority (FIA), the coun­try achieved par­tial com­pli­ance on 15 out of 16 core tech­ni­cal prin­ci­ples cre­ated by FATF; an out­come deemed suf­fi­cient to jus­tify re­moval from the global list of shame. The global body pos­sesses a set of 40 tech­ni­cal prin­ci­ples, with 24 of these con­sid­ered non core and not rel­e­vant in coun­try com­pli­ance as­sess­ments. These prin­ci­ples cover is­sues such as a coun­try’s will­ing­ness to share use­ful in­for­ma­tion with mem­bers.

Uganda was placed on the FATF list of shame in Fe­bru­ary 2014, which is also known as the light greylist.

Newspapers in English

Newspapers from Kenya

© PressReader. All rights reserved.