Anti-Money Laundering Act, 2013

Section Interpretation Section In this Act, unless the context otherwise requires— “ accountable person ” means any person listed in the Second Schedule to this Act; “ authorised officer ” means the Executive Director or Deputy Executive Director of the Financial Intelligence Authority , a prosecutor of the Director of Public Prosecutions, or a police officer of the rank of assistant inspector of police or higher; “ Authority ” means the Financial Intelligence Authority established under Part IV; “ bearer negotiable instruments ” means monetary instruments in the form of a document such as traveler’s checks and negotiable instruments, including checks, promissory notes and payment orders, that are issued to bearer, endorsed unconditionally or issued to a fictitious payee, or in another form that allows the transfer of the right upon delivery, and incomplete instruments including checks, promissory notes, and payment orders that are signed but have the payee’s name crossed out or omitted; [definition of “bearer negotiable instruments” inserted by section 1(a) of Act 3 of 2017 ] “ beneficial owner ” means the natural person who ultimately owns or controls a customer or the natural pe...

Section Jurisdiction Section Notwithstanding the provisions of any other law, Uganda shall have jurisdiction over the crimes under this Act when— the crime is committed within the territory of Uganda; the crime is committed on board a vessel that is flying the flag of Uganda or an aircraft that is registered under the laws of Uganda at the time the crime is committed ; the crime is committed by a national of Uganda or a stateless person , who has his or her habitual residence in Uganda; the crime is a crime under paragraph (g) of section 116 of this Act committed outside the territory of Uganda with the objective of committing a crime under paragraphs (a) up to (f) of section 116 of this Act within the territory of Uganda. The crimes provided for in Part II of this Act shall be investigated by a competent authority , tried, judged and sentenced by a court regardless of whether or not the crimes occurred outside the territory of Uganda.

Section Prohibition of money laundering Section It is prohibited for any person to intentionally— convert, transfer, transport or transmit property , knowing or suspecting that such property to be the proceeds of crime , for the purpose of concealing or disguising the illicit origin of the property or of assisting any person who is involved in the commission of the crime generating the proceeds to evade the legal consequences of his or her actions; or conceal, disguise or impede the establishment of the true nature, source, location, disposition, movement or ownership of or rights with respect to property , knowing or suspecting that such property to be the proceeds of crime ; or acquire, possess, use or administer property , knowing, at the time of receipt, that the property is the proceeds of crime ; or act to avoid the transaction reporting requirements provided in Part III of this Act; or assist another to benefit from known proceeds of crime ; or use known proceeds of crime to facilitate the commission of a crime ; or participate in, associate with, conspire to commit, attempt to commit, aid and abet, or facilitate and counsel the commission of any of the acts described in par...

Section Evidence of state of mind Section Knowledge, intent or purpose required as an element of the crime of money laundering set out in this Part may be inferred from objective factual circumstances.

Section Separate crime Section The crime of money laundering under this Act— is a crime distinct from and in addition to other crimes under the laws of Uganda, including the crime generating the proceeds subject to the money laundering ; and may be charged without the person having been convicted of the crimes generating the proceeds of money laundering .

Section Cross border movements of currency and negotiable bearer instruments Section A person — entering or leaving the territory of Uganda and carrying cash or bearer negotiable instruments exceeding one thousand five hundred currency points or the equivalent value in a foreign currency; or arranging for the transfer of cash or bearer negotiable instruments exceeding one thousand five hundred currency points or the equivalent value in a foreign currency into or out of the territory of Uganda by mail, shipping service or any other means, The Uganda Revenue Authority may request additional information concerning the source and purpose of use of the cash or bearer negotiable instruments referred to in subsection (1). The customs department of the Uganda Revenue Authority shall, without delay, forward to the Authority any form completed under the requirements of this section. The Uganda Revenue Authority shall, in case of suspicion of money laundering or terrorism financing , or in the case of a false declaration or a failure to declare, seize the currency or bearer-negotiable instruments for a period not exceeding six months and shall immediately notify the Authority . The court may,...

Section Availability of records Section In regard to information in records, reports, and other documentation required under this Part and in accordance with the laws of Uganda— Where a competent authority requests an accountable person to advise whether— accountable persons shall make the information available to the court , or other competent authorities for use in criminal, civil, or administrative investigations, prosecutions, or proceedings, as the case may be, regarding crimes under this Act; the competent authorities shall share the information with other appropriate competent authorities of Uganda when the information concerns crimes under this Act; the competent authorities may share the information with the competent authorities of other countries when it concerns crimes under this Act; the competent authorities shall treat as confidential such information, except insofar as such information is necessary for use in criminal, civil or administrative investigations, prosecution or proceedings, as the case may be, regarding crimes under this Act; a specified person is or has been a client; a specified person is acting or has acted on behalf of any client; or a client is acti...

Section Admissibility of records Section A record , report, notice or other document kept under this Part, or a certified extract of any document , or a certified printout of any electronic record , is on its production in a matter before a court admissible as evidence of any fact contained in it of which direct oral evidence would be admissible.

Section Electronic funds transfers Section An accountable person who engages in electronic funds transfers shall obtain and include accurate originator information and information relating to the recipient when carrying out electronic funds transfers and shall ensure that the information remains with the transfer order or related message throughout the payment chain. A financial institution originating the wire transfer that is unable to obtain the information referred to in subsection (1) shall not execute the transfer. Subsection (1) shall not apply to an electronic funds transfer other than a money transfer effected by the use of a credit or debit card as a means of payment that results from a transaction carried out using a credit or debit card, provided that the credit or debit card number is included in the information accompanying such transfer. Subsection (1) shall not apply to electronic funds transfers and settlements between accountable persons where the originator and beneficiary of the funds transfer are acting on their own behalf.

Section Obligations of confidentiality not an impediment Section For the purposes of subsection (2), privileged communication means— An obligation as to bank or professional secrecy, confidentiality and any other restrictions on the disclosure of information whether imposed by law or any agreement shall not affect any obligation under this Act to report or furnish information. [subsection (1) amended by section 9(a) of Act 3 of 2017 ] Subsection (1) shall not apply to communications between an advocate and a client which are privileged under the laws of Uganda. confidential communication, whether oral or in writing, passing between an advocate in his or her professional capacity and another advocate in that capacity; or any communication made or brought into existence for the purpose of obtaining or giving legal advice or assistance; and any communication not made or brought into existence for the purpose of committing or furthering the commission of an illegal or wrongful act.

Section Immunity from liability Section Where a report is made or information is furnished in good faith under this Act, the accountable person , its employees, officers, directors, and agents shall not be criminally, civilly or administratively liable for complying with this Part or for breach of any restriction on disclosure of information imposed by contract or by any legislative, regulatory or administrative provision, regardless of the result of the communication.

Section Refraining from doing business with money launderers Section Subject to the requirements of section 13 , every accountable person shall take such measures as are reasonably necessary to ensure that neither it nor any service offered by it is used by a person to commit or facilitate the crime of money laundering and financing of terrorist activities.

Section Continuing the transaction Section An accountable person who is party to a transaction and is required to make a report under sections 8 or 9 may continue with and carry out the transaction in respect of which the report is required as long as the accountable person complies with the requirements of this Act.

Section Identification of clients, customers, other persons and other anti-money laundering measures Section An accountable person shall carry out due diligence measures in the following circumstances— An accountable person shall apply the following due diligence measures on a risk sensitive basis and shall take into account the outcome of a risk assessment— An accountable person shall, in addition to the measures specified in subsection (3), undertake further customer due diligence measures to— An accountable person may complete the verification of the customer or beneficial owners’ identity after the establishment of the business relationship or carrying out of the occasional transaction provided that— In addition to customer due diligence measures, an accountable person shall implement appropriate risk management systems to determine whether a customer or beneficial owner is a politically exposed person and if so, apply the following additional measures— In relation to cross-border correspondent banking and other similar relationships , an accountable person shall, in addition to customer due diligence measures, apply the following measures— An accountable person shall develop a...

Section Risk assessment Section An accountable person shall identify, assess and, take appropriate measures to manage and mitigate the money laundering or terrorism financing risks that may arise in relation to— An accountable person shall take appropriate steps to identify, assess and monitor its money laundering and terrorism financing risks. the development of new products and new business practices; including new delivery mechanisms for products and services; and the use of new or developing technologies for both new and pre-existing products. The risk assessment under subsection (2) shall take place prior to the launch of the new product or business practice, or the use of a new or developing technology. [section 6A inserted by section 3 of Act 3 of 2017 ]

Section Record-keeping Section An accountable person shall establish and maintain all necessary books and records relating to— For the purposes of subsection (1), books and records include— The books and records referred to in subsection (1) shall be kept for a minimum period of ten years from the date— The books and records established and maintained for purposes of subsection (1) shall— the identity of a person obtained in accordance with customer due diligence measures; all transactions both domestic and international, carried out by it and correspondence relating to the transactions as is necessary to enable the transaction to be readily reconstructed at any time by the Authority or other competent authority , and the records shall contain such particulars as the Minister may, by regulations prescribe; all reports made to the Authority under this Act; including any accompanying documentation; any enquiries relating to money laundering and financing of terrorism made by the Authority . account files, business correspondence including the results of any analysis undertaken and copies of documents evidencing the identities of customers and beneficial owners obtained through custom...

Section Recording and reporting cash and monetary transactions Section For each cash and monetary transaction involving a domestic or foreign currency exceeding one thousand currency points, an accountable person shall record the cash or monetary transaction on the form designated as Form A as may be appended to regulations made by the Minister , on the advice of the Authority . The information required by Form A shall be recorded, accurately and completely, by the accountable person on the day the transaction has occurred and the Form A shall be maintained for a period of ten years from the date of the transaction. Multiple cash and monetary transactions which altogether exceed the prescribed amount shall be treated as a single transaction if they are undertaken by or on behalf of any one person during any one day or such other period prescribed by the Minister , upon advice of the Authority , and shall be recorded on Form A as if they were a single transaction under this section. Transactions conducted on their own account between accountable persons subject to supervision by authorities of the Government of Uganda are not required to be recorded on Form A. A copy of the Form A c...

Section Reporting of suspicious transactions Section Where a supervisory authority or an auditor of an accountable person suspects or has reasonable grounds to suspect that information in its possession concerning any transaction or attempted transaction may be— An accountable person shall report to the Authority if it suspects or has reasonable grounds to suspect that a transaction or attempted transaction involves proceeds of crime or funds related or linked to or to be used for money laundering or terrorism financing , regardless of the value of the transaction. An accountable person shall make the report under section (1) without delay but not later than two working days from the date the suspicion was formed. The report under subregulation (1) shall be in the form prescribed by the Minister by regulations and shall be accompanied by any documents directly relevant to that suspicion and the grounds on which it is based. An accountable person , if requested by the Authority , shall give the Authority any relevant information or copies of documents or files, however and wherever stored, inside or outside their buildings, and within the time prescribed by the Authority . Advocates...

Section Protection of identity of persons and information in suspicious transaction reports Section A person shall not disclose any information that will identify or is likely to identify— any information contained in a suspicious transaction report or information provided pursuant to this Act; except for the purposes of— any person who has handled a transaction in respect of which a suspicious transaction report has been made; any person who has made a suspicious transaction report; or the investigation or prosecution of a person for an unlawful activity, a money laundering offence or an offence of financing of terrorism; or the enforcement of this Act.

Section Establishment of the Authority Section There is established a Financial Intelligence Authority . The Authority is a body corporate with perpetual succession and may sue and be sued in its corporate name and do all acts and things as a body corporate may lawfully do. The Authority shall have its head office in Kampala and may establish branches elsewhere in Uganda as it may decide.

Section Objectives Section The objectives of the Authority are to— enhance the identification of the proceeds of crime and the combating of money laundering ; ensure compliance with this Act; enhance public awareness and understanding of matters related to money laundering . make information collected by it available to competent authorities and to facilitate the administration and enforcement of the laws of Uganda; and exchange, spontaneously or upon request, any information with similar bodies of other countries that may be relevant for the processing or analyzing of information relating to money laundering or terrorism financing . [paragraph (e) substituted by section 10 of Act 3 of 2017 ]

Section Functions Section To achieve its objectives, the Authority — shall receive process, analyse and interpret information disclosed to it and obtained by it in terms of this Act; [paragraph (a) amended by section 11(a) of Act 3 of 2017 ] shall disseminate, either spontaneously or upon request, information and the results of its analysis to any relevant competent authority in Uganda and if the analysis and assessment shows that a money laundering offence, a terrorism financing offence or a crime has been, or is being committed, to send a copy of the referral or information to the relevant supervisory authority ; [paragraph (b) substituted by section 11(b) of Act 3 of 2017 ] shall inform, advise and cooperate with other competent authorities; shall give guidance to accountable persons, competent authorities, and other persons regarding compliance with the provisions of this Act; shall retain the information referred to in paragraph (a) in the prescribed manner for a period of at least ten years; shall be responsible for the collection of fines adjudicated under this Act; shall issue guidelines to accountable persons not under the jurisdiction of supervisory authorities in relatio...

Section Powers to enforce compliance Section A supervisory body, in exercising its powers under this section may— issue or amend any licence, registration, approval or authorisation that the supervisory body may issue or grant in accordance with any other law, to include the following conditions— The enforcement of compliance with the provisions of this Act by an accountable person shall be the responsibility of the supervisory body of the accountable person . Where the accountable person has no supervisory body, it is the responsibility of the Authority to ensure that that accountable person complies with the provisions of this Act. The Authority or a supervisory body may direct any accountable person that has, without reasonable excuse, failed to comply in whole or in part with any obligations under this Act to comply. Where an accountable person fails to comply with a directive issued under subsection (3), the Authority or the supervisory body, may, upon application to a court , obtain an order against any or all of the officers or employees of that accountable person on such terms as the court deems necessary to enforce compliance with the Act. Subject to subsection (4) the cou...

Section General powers of the Authority Section The Authority may do all that is necessary or expedient to perform its functions effectively, and in particular— require any accountable person to carry out a risk based assessment of his or her customers as may be prescribed by regulations made under this Act; establish its own structure, staffing levels and the terms and conditions of service as determined by the Board and approved by the Minister ; assign employees and seconded personnel to particular posts within the Authority ; establish rules and procedures for career development and disciplining of staff; manage the Authority ’s finances and assets; obtain the services of any person by agreement, or from any government agency, to perform any specific act or function; enter into contracts and acquire or dispose of any right in or to property ; open and operate its own bank accounts; insure itself against any loss, damage, risk or liability; engage in any lawful activity, whether alone or together with any other organisation in Uganda or elsewhere, aimed at promoting its objectives; obtain any information from accountable persons, supervisory agencies and law enforcement agencies...

Section Independence of the Financial Intelligence Authority Section The Financial Intelligence Authority shall be independent in the performance of its functions and shall not be subjected to the direction, instruction or control of any person or Authority . Notwithstanding subsection (1) the Minister may give the Authority policy Guidelines.

Section Financial Intelligence Authority Board Section The governing body of the Authority shall be the Board .

Section Functions of the Board Section The Board shall— be the policy making organ of the Authority ; give direction to the Executive Director in connection with the management, performance, operational policies and implementation of the policies of the Authority ; on the recommendation of the Executive Director, approve such organizational structures, terms and conditions of service; prescribe such administrative measures as may be required to safe guard all revenue of the Authority ; and subject to sections 28 , 30 and 32 appoint, remove and suspend the members of staff of the Authority. subject to sections 28 , 30 and 32 appoint, remove and suspend the members of staff of the Authority in accordance with the Human Resource Manual. [paragraph (f) substituted by section 14(a) of Act 3 of 2017 ] review and approve the budgetary estimates of the Authority ; [paragraph (g) inserted by section 14(b) of Act 3 of 2017 ] review and approve the strategic plan of the Authority ; and [paragraph (h) inserted by section 14(b) of Act 3 of 2017 ] consider the annual report of the Authority and report to the Minister on any matter appearing in or arising out of such a report. [paragraph (i) inse...

Section Composition of the Board Section The following shall be the members of the Board — a Chairperson, who shall be a person of high moral character and proven integrity and possesses the relevant experience; four members of high moral character and proven integrity with substantial experience in either law, finance, criminal investigations, or any other relevant experience; and the Executive Director, who shall be an ex officio member. The Minister shall appoint the Chairperson and other members of the Board The members of the Board shall hold office on terms and conditions specified in their instruments of appointment. The appointment of the members of the Board shall be approved by Parliament.

Section Tenure and removal of members of the Board Section A member of the Board may be removed from office by the Minister if he or she— Members of the Board shall serve a term of three years, and may be reappointed for one more term. A member of the Board may resign his or her office by writing under his or her hand addressed to the Minister and the resignation shall take effect one month from the date of receipt of the letter of resignation by the Minister . Where a member of the Board dies or resigns or otherwise vacates office before the expiry of the term for which he or she was appointed, the Minister may appoint another person in his or her place and the person so appointed shall hold office for the unexpired term of office of the person in whose place he or she is appointed. becomes of unsound mind or is incapable of performing the duties of his or her office; fails, omits or neglects to carry out his or her responsibilities as a Board member; becomes bankrupt or suspends payment or compounds with his or her creditors; or is convicted of an offence punishable by more than three months imprisonment or is convicted of an offence involving fraud or dishonesty; fails to attend...

Section Meetings and procedures of the Board Section To conduct the business of the Board — the Board — when a decision or action is to be taken by the Board and it is not feasible to call a meeting, the decision or action shall become effective and binding if— the Board shall meet for the discharge of its functions as often as business requires and in any case the Board shall meet not less than once in every quarter of the financial year of the Authority ; may determine its own procedures at meetings; may request advice and assistance from such persons as it considers necessary to assist it to perform its functions; may appoint committees from its members to assist it in the performance of its functions; a quorum constituting a majority of the members shall be present at a meeting, and a decision or action shall be approved by a majority of those present after a quorum is established; the proposed decision or action is circulated in writing among the members of the Board ; an opportunity is given to each Board member to comment in writing on the proposed action or decision within a reasonable time; and less than a majority of the members object in writing within the time prescribe...

Section Executive Director Section The Authority shall have an Executive Director who shall be be appointed by the Minister on the recommendation of the Board and with the approval of Parliament. The Executive Director shall be a person of high moral character and proven integrity with professional experience in either law, administration, banking, finance, economics, investigations or any other relevant professional experience. The Executive Director shall hold office for a term of four years and is eligible for re-appointment for one more term only.

Section Functions of the Executive Director Section The Executive Director shall be the Chief Executive Officer of the Authority , and shall be responsible for the day-to-day affairs of the Authority . In the performance of his or her duties, the Executive Director shall be accountable to the Board for all decisions made on behalf of the Authority in the exercise of its powers and in the performance of its functions.

Section Removal or suspension from office Section The Minister shall on recommendation of the Board , suspend the Executive Director from office, pending the determination of any enquiry as to the existence of any of the grounds in subsection (2). The Minister shall on recommendation of the Board ; remove the Executive Director from office for misconduct, incapacity or incompetence.

Section Appointment of the Deputy Executive Director Section There shall be a Deputy Executive Director who shall be appointed and serve in the same manner as the Executive Director as specified in sections 28 and 30 .

Section Staff Section The staff of the Authority shall consist of the Executive Director, the Deputy Executive Director, and persons appointed as staff of the Authority by the Board . Members of staff shall perform their duties subject to the supervision and directions of the Executive Director. The conditions of service of the staff of the Authority shall be determined by the Board under the provisions of this Act.

Section Declaration of assets Section Notwithstanding the provisions of any other law, a member of the Board and staff of the Authority shall declare their assets and liabilities to the Inspectorate of Government within one month before taking up office and subsequently at periodical interval as required by the Leadership Code Act.

Section Oath of secrecy Section A member of the Board and a member of staff of the Authority shall before assuming the duties of his or her office subscribe to an oath of allegiance.

Section Reports to the Board Section The Executive Director shall— report to the Board from time to time on the performance of the Executive Director’s responsibilities and the Authority ’s functions and powers under this Act; keep the Board informed of any matter that could materially affect public policy or the strategic direction of the Authority and any other matter that the Board considers necessary; not disclose any information that would directly or indirectly identify an individual who provided a report or information to the Authority , or a person or an entity about whom a report or information was provided under this Act; submit quarterly reports to the Board on the performance of the Authority .

Section Reports to the minister Section The Board shall within three months after the close of each financial year, submit an annual report on the performance of the Authority to the Minister . The Minister shall within one month after receipt of the report in subsection (1) table a copy of the report before Parliament.

Section Receipt of reports and information Section The Authority — shall receive reports made under this Act, information provided to the Authority by any agency of another State that has powers and duties similar to those of the Authority , by law enforcement agencies or other components of the government, and other information about suspicions of money laundering , that is voluntarily provided to the Authority ; shall have power to collect information that the Authority considers relevant to money laundering activities, including further information on parties or transactions referred to in a report made to it under this Act from any accountable person , commercially available databases or stored in databases maintained by the Government of Uganda for purposes related to law enforcement; shall have power to obtain information from any government agency, law enforcement agency and supervisory agency for purposes of this Act; shall analyse and assess such reports and information; and shall retain each report and information for the period determined by the Authority .

Section Disclosure and use of information Section The Authority may disclose information to an institution or agency of a foreign state or of an international organisation established by the governments of foreign states, that has powers and duties similar to those of the Authority where— the Authority has reasonable grounds to suspect that the information would be relevant to the investigation or prosecution of a money laundering offence or a substantially similar offence; and the Government of Uganda has a treaty, agreement or arrangement with that foreign state or international organization regarding the exchange of such information. Agreements or arrangements entered into under subsection (1) (b) shall restrict the use of information to purposes relevant to investigating or prosecuting a money laundering offence or a substantially similar offence. A person who obtained or who has or had access to such information referred to in subsection (1) in the course of exercising powers or performing duties and functions under this Act, shall not use the information for a purpose other than exercising those powers or performing those duties and functions. A suit or other legal proceeding...

Section Exchange of information by competent authorities Section Competent authorities may exchange information and provide international cooperation both upon request from and spontaneously to foreign counterparts in relation to possible or confirmed money laundering or terrorist financing and any related activity subject to the regulations made under this Act [section 38A inserted by section 15 of Act 3 of 2017 ]

Section Contracts and agreements Section The Authority may, for the purpose of exercising its powers or performing its duties and functions under this Act, enter into contracts, memoranda of understanding and other agreements with a department or an agency of the Government of Uganda and with any other person or organisation, whether inside or outside Uganda, in its own name. Agreements relating to the Authority ’s collection of information from databases referred to in this Act must specify the nature of and limit with respect to the information that the Authority may collect from the database.

Section Legal proceedings Section actions, suits or other legal proceedings in respect of any right or obligation acquired or incurred by the Authority shall be brought in its own name. No action shall lie against the Authority , any employee of the Authority or any person acting under the direction of the Executive Director for anything done in good faith in the administration or discharge of any powers, duties or functions that under this Act are intended or authorised to be exercised or performed.

Section Funds of the Authority Section The funds of the Authority shall consist of money appropriated annually by Parliament for the purposes of the Authority , any Government grants made to it, and any other money legally acquired by it.

Section Fiscal year of the Authority Section The fiscal year of the Authority shall be the same as that of Government.

Section Audit Section The Auditor General, or an auditor appointed by the Auditor General to act on his or her behalf, shall audit and report on the accounts and financial records of the Authority .

Section Treatment of realisable property in bankruptcy or winding up Section Where a person who holds realisable property is adjudged bankrupt, such realisable property shall not be excluded from the property of the bankrupt and is therefore subject to the bankruptcy laws or any orders issued by a court under the bankruptcy laws. Where realisable property is held by a company and an order for the winding up of the company has been made or a resolution has been passed by the company for its voluntary winding up, such realisable property shall not be excluded from the property to be distributed to the company’s creditors or owners and is therefore subject to the law applicable to winding up or any order issued by a court under such law.

Section Disposition of confiscated property Section Where property is confiscated under this Act, the court may, in accordance with the law, make orders for the transfer or sale of such confiscated property . Proceeds arising from the disposition of the confiscated property shall be deposited in the Consolidated Fund.

Section Property of foreign crimes Section The court may, in accordance with the law, order the confiscation of any property in its territorial jurisdiction when it is connected to a crime committed against the laws of another State, and when that crime would have been a crime if committed within its jurisdiction.