- to deepen the understanding of IFFs and its manifestations
- to appreciate the impact of IFFs and in particular Trade-Based Money Laundering (TBML) on Domestic Revenue Mobilisation and development
- to identification of sectors susceptible to IFFs
- to clarify the role of various stakeholders in mitigating IFFs and Trade-Based Money Laundering; discussing IFFs risks and a stakeholder coordination strategy for mitigating IFFs
- to generate proposals for mitigating IFFs
Multistakeholder Dialogue on Illicit Financial Flows in Uganda
ACODE with Global Financial Integrity in partnership with the Financial Intelligence Authority of Uganda are organizing a multistakeholder dialogue on Illicit Financial Flows landscape in Uganda (IFFs) in Uganda. It will bring together participants from government agencies including URA customs Department, law enforcement agencies, prosecution, Financial Intelligence Authority, Civil Society, national security agencies, financial institutions, designated non-financial businesses, and professionals among others.
Illicit Financial Flows (IFFs) refers to illegal movements of money or capital across international borders that is illegally earned, acquired, transferred, or utilised. Illicit Financial Flows constitute a challenge globally and Uganda is not an exception. IFFs undermine domestic revenue mobilization and deny the country the necessary financial resources to finance its development projects. Uganda has for decades been losing revenue through IFFs which is usually perpetuated among other means by registering and operating under the shield of companies where the beneficial owners are concealed. Uganda is estimated to be losing in excess of Shs.2 trillion annually to IFFs. IFFs manifest in three broader categories: a). commercial activities (tax evasion, smuggling, abuse of transfer pricing trade mis invoicing, aggressive tax planning); b). criminal activities (poaching, illegal mineral trade, drug trafficking); and c). corruption.
IFFs and in particular Trade-Based Money Laundering (TBLM) takes advantage of complexities in the international financial architecture. With increasing global integration and trade openness, the susceptibility of economies to abuse of trade practices by criminals to move value has increased over time. For instance, in 2021, global trade hit a record high of $28.5 trillion. Such characteristics coupled with inadequate resources and differences in priorities of relevant agencies to facilitate the investigation of illicit trade makes the global financial and trade systems susceptible to Illicit Financial Flows.
The Uganda government has instituted various mechanisms to counter IFFs through the creation of institutions such as the Financial Intelligence Authority (FIA), Criminal Investigations Department (CID), URA Customs, and the Inspectorate of Government among others. Despite these efforts, commitment and collaboration among these institutions remains low.
The dialogue is organised around the following objectives: