By KT Reporter
The Financial Intelligence Authority -FIA has launched a campaign to raise awareness among residents of Kigezi, where moneylaundersing is rising.
FIA Principal Compliance and Outreach Officer Monic Ndyamuhimbisa told journalists operating in the Kigezi sub-region on Thursday, that Kigezi, and Kabale District in particular, has been designated as a hotspot for money laundering due to its rapid growth as the region’s commercial hub.
According to the Anti-Money Laundering Act 2013, money laundering is the process of converting, transferring, transporting, or concealing property known or suspected to be proceeds of crime. It involves disguising the illicit origin, nature, source, location, or movement of such property to make it appear legitimate.
Ms. Ndyamuhimbisa stated that during the recent National Risk Analysis, it was revealed that money launderers have exploited the proliferation of gambling centers, non-governmental organizations (NGOs), Savings and Credit Cooperatives (SACCOs), and illicit trade along the Uganda-Rwanda border.
She noted that perpetrators of money laundering take advantage of weak systems and the lack of scrutiny regarding the origin of their funds to integrate illicit money into the legitimate financial system through SACCOs, NGOs, betting sites, and illegal trade, among other channels. “For example, these individuals avoid established commercial banks and prefer SACCOs, which don’t ask many questions about the source of their funds. They also invest through NGOs and large-scale money businesses such as betting,” she explained.
F.I.A. Principal Communications Officer Jossy Muhangi stated that illicit financial flows in Uganda are estimated at UgX 1.7 trillion, approximately USD 500 million annually. He warned that money laundering can also serve as a means of financing terrorism, citing a recent case in Busia District where authorities intercepted money being transferred to the Democratic Republic of Congo to fund the Allied Democratic Forces -ADF.
“There was a mobile money agent who reported a suspected money launderer using his services. Investigations later revealed that the funds were destined for DRC to support a terrorism organization, the ADF, ,” Muhangi stated.
Additionally, Mr. Didas Kamurungi, the Training and Outreach Officer, disclosed that the F.I.A. is investigating several politicians who allegedly spent “endlessly” during the recently concluded election campaigns in the Kigezi sub-region. Kamurungi declined to reveal the identities of those under investigation due to the sensitive nature of the process but assured the public that anyone found guilty of money laundering will be identified at the appropriate time.
Meanwhile, Kabale District Deputy RDC Micheal Kyakashari expressed frustration over the bureaucratic delays in prosecuting suspects, which he believes could undermine efforts to combat money laundering.
Kyakashari cited a recent case involving 72 youths arrested in connection with a nationwide job scam targeting Ugandans. The arrests were made during a police operation in Kabale Municipality last month; however, the Office of the Kabale District State Attorney reportedly delayed prosecution for nearly two weeks, citing insufficient evidence.
-URN. Give us feedback on this story through our email: kamwokyatimes@gmail.com
