Implications of Uganda's Anti-Money-Laundering Legal Regime on the Banking Sector

Anti-Money Laundering Journal of Africa, Vol 2, Issue 3, 2016

8 Pages Posted: 19 Dec 2016

Date Written: November 30, 2016

Abstract

The Anti-Money-Laundering Act, 2013 (AMLA) seeks to combat money-laundering from different fronts. In addition to creating the offence of money-laundering as a separate crime notwithstanding the source or terminus of the money, the Act recruits financial institutions into the fight against money-laundering. Financial institutions are identified as 'accountable persons' and are required to fully identify their customers, and keep track of the nature of their businesses and transactions. They are also required to report transactions to the authorities, in instances where they are deemed to be suspicious and whenever they are required to do so. In so doing, the AMLA redefines the relationships between financial institutions, their clients and the state. It creates new obligations previously outside the traditional structure of Know Your Customer (KYC) and Customer Due Diligence (CDD). This article analyses the implications of the new duties placed on banks, and more specifically upon the banker-customer relationship, which is viewed as the bedrock of banking. The article concludes by noting that whereas there is a need to safeguard banks from money-laundering, the banks should work hand-in-hand with law enforcement, rather than being the sole 'gate-keepers'.

Keywords: Money Laundering, Financial Institutions, Uganda

Suggested Citation

Herman, Tuhairwe, Implications of Uganda's Anti-Money-Laundering Legal Regime on the Banking Sector (November 30, 2016). Anti-Money Laundering Journal of Africa, Vol 2, Issue 3, 2016. Available at SSRN: https://ssrn.com/abstract=2887482

Tuhairwe Herman (Contact Author)

Law Development Centre Uganda ( email )

P.O Box, 7117, Kampala
Kampala
Uganda

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
109
Abstract Views
533
rank
262,310
PlumX Metrics