Clari5 Market Insights
UGANDA
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
Highlights
Advantages
Highlights
- Real-time approach to monitor and detect suspicious money laundering transactions
- Quicker implementation because of prepackaged AML scenarios and built-in interfaces for integration
- Low-cost commodity hardware infrastructure leading to reduced TCO
- Behavior profiling based on emerging fraud patterns covering all channels and products across the bank, by synthesizing intelligence from multiple source systems and databases
- Clari5 supports regulatory reporting (CTR, STR / SAR reports) for timely filing along with integrated role-based reports and dashboards for any investigator or supervisor
Advantages
- Clari5’s differentiated approach uses AI as the central nervous system for banks. Clari5 connects data from disparate systems and intelligently determines potential fraudulent activities
- Clari5’s unique architecture ensures horizontal linear scaling using commodity hardware
- Clari5 includes a real-time federated anti-fraud network enabling member banks to quickly identify new types of fraud activities
- Case Management System to shrink analyst time on false positive investigation, using AI / ML driven models on past resolution data; workflow-driven investigation in a configurable centralized or decentralized manner
- With our pre-packaged AML scenarios, various parameters like Threshold & Time Duration can be configured based on the business policies. These scenarios cover recommendations made by various regulatory agencies