Uganda has expanded information-sharing avenues to reinforce its anti-money laundering regime in recent months, but gaps in various laws continue to attract criticism from global oversight bodies.

So far, the Financial Intelligence Authority (FIA) — the financial sector policing unit — has signed four memoranda of understanding since 2014 with local agencies aimed at enforcement of anti-money laundering measures.

The MoUs provide for faster and more effective sharing of information required for anti-money laundering investigations and co-operation in prosecution of suspects engaged in terrorism financing.

The partner institutions are the Uganda Revenue Authority, the Capital Markets Authority, the Uganda Registration Services Bureau (URSB) and the Director of Public Prosecutions.

Closer co-operation with URSB is expected to facilitate access to detailed information regarding particulars of shareholders linked to companies implicated in suspicious transactions reported by financial institutions, while collaboration between the FIA and the DPP’s office is expected to increase efficiency in terrorism financing investigations.

Court orders

Under the Anti-Terrorism Act 2002, the FIA is obliged to request the DPP’s office to seek court orders freezing any bank accounts cited in the transfer or movement of funds originating from terrorist groups, their sponsors or agents within 48 hours of receiving such information. This information is subsequently passed on to the police for further investigations.

Changes made to the Anti-Terrorism Act 2002 and Financial Institutions Act 2004 have boosted Uganda’s compliance ratings.

READ: Kampala agrees to revise money laundering law

Amendments to the former were passed last year, gazetting new anti-terror groups such as Al Shabaab and the Islamic State in Uganda’s laws and incorporating United Nations endorsed counter terrorism financing measures.

The amendments to the Finance Institutions Act 2004 provide for smooth sharing of information between regulated financial institutions supervised by Bank of Uganda and the FIA.

BoU last week issue guidelines on anti-money laundering compliance to commercial banks.