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Publications

Trade-Based Money Laundering in Uganda

Trade-Based Money Laundering (TBML) as a forms of Illicit Financial Flows (IFFs) has become a commonly used method to launder money. TBML is one of the most sophisticated methods of money laundering, and since it resembles legitimate trade, it is the hardest to detect by financial institutions and customs authorities. TBML largely involves giving false information on imports and exports through over/under-billing, multiple billing, over/under shipping, and quality misrepresentation. Compared to more conventional kinds of money laundering, TBML seems to be less understood by policymakers, yet its impact can have a significant effect on global trade and tax income. This policy brief, therefore, seeks to contribute to understanding the landscape of trade-based money laundering in Uganda.

Beneficial Ownership Laws in Uganda and the Role of Stakeholders

This fact sheet provides information on the legal and institutional framework governing beneficial ownership in Uganda and the role of different government agencies in the fight against illicit financial flows and related crimes in Uganda. Beneficial ownership is a cencept that refers to the ultimate ownership or control of a legal arrangement, entity or asset. It identifies the individual(s) referred to as beneficial owners who enjoy the benefits of ownership, such as profits and voting rights. According to Ugandan laws, a beneficial owner means a natural person or persons who exercises ultimate control over a company or a natural person on whose behalf a transaction is conducted in a company.

Beneficial Ownership Information Disclosure in Uganda

This fact sheet provides information relating to beneficial ownership disclosures in Uganda and the importance of such disclosures in the fight against illicit financial flows and related crimes in Uganda. Section 21 of the Companies (Amendment) Act, 2022 requires every registered entity/arrangement in Uganda to record their beneficial owner(s) in a beneficial ownership register. This register contains i) certain personal information of the beneficial owner(s) of the entity/arrangement, ii) the nature of ownership or control they have in the entity, and iii) the date they became or ceased to be beneficial owners. The law requires that notice of the creation of the register be given to the Registrar of Companies within 14 days.

Trade-Based Money Laundering: A Global Challenge

The report analyzes the numerous challenges of TBML from a global policy perspective. It describes TBML as “disguising the proceeds of crime [by] moving value through the use of (legitimate) trade transactions.” The report provides an in-depth analysis of the most common TBML methodologies namely: over- and under-invoicing of goods; misrepresentation of goods being shipped; multiple invoicing of goods; over- and under-shipment or phantom shipments; the black market peso exchange; and the use of informal value transfer systems. Mis-invoicing was the most common methodology, representing 63 percent of cases. The paper finds that this illicit activity poses complex problems for law enforcement while also undermining global development. The report concludes with an analysis of current policy efforts as well as recommendations for ways to bolster the fight against TBML going forward.

Corporate Transparency: A guide for beneficial ownership laws in Uganda

This paper is a contribution to legal reforms in Uganda that are intended to take care of beneficial ownership transparency. It seeks to tackle some of the questions that ought to be addressed in the course of streamlining beneficial ownership disclosure in Uganda. Globally, beneficial ownership transparency has emerged as a critical tool in identifying and stemming Illicit Financial Flows (IFFs) resulting from corruption, money laundering, terrorism financing and other financial crimes. Beneficial ownership transparency limits individuals from hiding behind shell companies to carry out illegal transaction that deny governments the necessary revenues to finance development programs.

OECD Global Tax Deal: Key Elements, Opportunities, and Challenges

The global tax deal represents a major reform to the rules governing the international tax system, aiming to bring an end to tax havens and profit-shifting by multinational enterprises. By introducing a global minimum tax rate and new profit reallocation rules, the deal aims to give countries a fairer chance to collect tax revenues from MNEs operating in or generating revenues from their jurisdictions. The deal was negotiated under the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting in October 2021.

FAQs on beneficial ownership laws in Uganda

This infographic booklet contains frequently asked questions on beneficial ownership in Uganda.

Mini Documentaries

Trade-based money laundering in Uganda

Watch our mini-documentary on trade-based money laundering in Uganda which highlights the most common techniques used, vulnerable sectors, and its impact on Uganda and how to mitigate the risks.

Beneficial Ownership in Uganda

The mini-documentary on beneficial ownership highlights the need for disclosure of beneficial owners of companies to combat illicit financial flows in Uganda. It illustrates how increased transparency on beneficial ownership will help to combat tax evasion, corruption, money laundering through shell companies and fight terrorism financing in Uganda.

Gold Trade in Uganda

The mini-documentary show loses Uganda incurs on potential revenues from gold trade due to illicit financial flows and lack of transparency in the mining sector.

In the media

• Money laundering: 'Uganda ready to be removed from grey list'
• Govt could start taxing loss-making businesses this year
• Legislators urged to address illicit financial flows in Africa
• Uganda loses Shs2 trillion in illicit financial flows
• How Uganda is combating illicit financial flows
• Curbing illicit finacial flows will increase domestic revenue
• Financial flows cost Uganda Shs2 trillion
• There’s more to illicit financial flows than corruption
• URA takes head-on the fight against illicit financial flows
• Vulnerabilities in URA’s way to rise tax revenue

© 2023 Advocates Coalition for Development & Environment. All Rights Reserved

Plot 96, Kanjokya Street. Box 29836, Kampala-UGANDA
Tel: +256(0) 312812150 Email: acode@acode-u.org

www.acode-u.org

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