Legal and Rulings Legal and Rulings
The Anti-Money Laundering (Amendment) Regulations, 2022
Court Rulings & Judgments
The FIA received reports/information in 2017 pursuant to section 9 of the Anti- Money Laundering Act that suspicious transactions were occurring on accounts held by the applicant specifically-Account No. 1002100721913 (USD) held at Equity Bank LTD; and Account No. 00871774001 (USD) held at Diamond Trust Bank.
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Palmfox International (U) Ltd-V-DFCU Bank (U) Limited, Bank of Uganda & FIA
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Uganda vs Kyambadde Alex
Kyambade Alex, hereinafter called the accused, was originally charged with another, Kyeswa Stephen, who passed away during the trial.
Kyeswa operated Revero Investments Ltd, a bank agency business with Centenary Bank.
Sanctions
The AML/CFT sanctions regime consists of both criminal and administrative sanctions. Section 136 of the AMLA ACT, Cap 118 provides for the penalties for Money Laundering offences committed. It prescribes for both natural and legal persons. Section 21(pa) gives powers to the Financial Intelligence Authority to impose administrative sanctions on an accountable person who fails to comply with directives, guidelines or requests issued by the Authority.
AML/CFT Sanctions: International and Domestic sanctions
Financial Action Task Force: Anti-Money Laundering Sanctions
Paris, 7 July 2020 – The FATF has completed a review of the implementation of its revised Standards on virtual assets and
virtual asset service providers, 12 months after the FATF finalized these amendments. The June 2019 revisions to the
FATF Standards clearly placed anti-money laundering and counter-terrorism financing (AML/CFT) requirements on
virtual assets and virtual asset service providers (VASPs). The FATF also agreed to undertake a 12-month review by
June 2020 to measure how jurisdictions and the private sector have implemented the revised Standards, as well as
monitoring for any changes in the typologies, risks and the market structure of the virtual assets sector.
This report sets out the findings of the review. The report reviews the implementation of the revised Standards and sets out:
- how money laundering and terrorism financing risks and the virtual asset market have changed since June 2019 (Section 1)
- jurisdictions’ progress in implementing the revised Standards (Section 2)
- the private sector’s progress in implementing the revised Standards, including the development of technical solutions for the implementation of the travel rule (Section 3)
- issues identified with the revised FATF Standards and Guidance (Section 4) and
- FATF’s next steps regarding virtual assets (Section 5).
Specially Designated Nationals and Blocked Persons List (SDN) Human Readable Lists
As part of its enforcement efforts, OFAC publishes a list of individuals and companies owned or controlled by, or
acting for or on behalf of, targeted countries. It also lists individuals, groups, and entities, such as terrorists and narcotics
traffickers designated under programs that are not country-specific. Collectively, such individuals and companies are
called “Specially Designated Nationals” or “SDNs.” Their assets are blocked and U.S. persons are generally prohibited
from dealing with them.
United Nations Security Council (UNSC) 1267 Sanctions List
United Nations Security Council Resolutions (UNSCR) 1267 and its successor resolutions require countries to immediately
freeze funds, financial assets or economic resources of individuals and entities who are designated by the
United Nations Security Council based on such person’s / entity’s connections with terrorism and terrorist financing.
Further, countries should ensure that no funds, financial assets or economic resources are made available to or for the
benefit of such designated persons or entities or their beneficiaries. Accordingly, financial institutions are obliged to
have measures in place to identify and freeze funds, financial assets or economic resources of such designated persons
and entities immediately. Freezing is effective as and when the United Nations Security Council announces the names
of such designated persons and entities and such freezing shall be in force until such time the person or entity is delisted
from the designated list. The Prevention of Terrorism Regulations mandates the Counter Financing of Terrorism
Inter-Ministerial Committee with circulation of the UNSC 1267 sanctions list. The Committee has in turn mandated the
Financial Reporting Centre to circulate the list to Supervisory Bodies as defined in POCAMLA Act,
National Security Organs, Law Enforcement Agencies, and other relevant institutions.
Press releases on updates to the list by the UNSC ISIL (Da’esh) & Al-Qaida Sanctions Committee and the
full list in various formats can be found at the links below:
United Nations Security Council Resolutions (UNSCR) 1373 Sanctions List
United Nations Security Council Resolutions (UNSCR) 1373 and its successor resolutions refer to designating individuals
and entities related to terrorism and terrorist financing at the national level. Accordingly, Institutions are obliged to
have measures in place to identify and freeze funds, financial assets or economic resources of such designated persons
and entities upon order by the Competent Authority.
Uganda ML/CFT sanctions
The AML/CFT sanctions regime consists of both criminal and administrative sanctions. Section 136 of AMLA Act,
Cap 118 (as amended) provides for the penalties for Money Laundering offences committed. It prescribes for both
natural and legal persons. Section 21(pa) gives powers to the Financial Intelligence Authority to impose administrative
sanctions on an accountable person who fails to comply with directives, guidelines or requests issued by the Authority.
The administrative sanctions regime will be effective after being issued by the Ministry of Finance,
Planning and Economic Development.
TARGETED FINANCIAL SANCTIONS GUIDELINES FOR ACCOUNTABLE PERSONS
APRIL 2023
AML/ CFT Judgments Uganda vs Yudaya Ntumwa Judgments
The accused stands charged with Money Laundering C/S 116 (c) & 136(1) (a) of the Anti-Money Laundering Act 2013.
In the alternative she was charged with receiving stolen property C/S 314 (1) of the Penal Code ACt, CAP 120.
The brief facts of the case are that on 2nd November 2014 the accused a client of the KCB Bank rung Lwamulungi Sebastian,
then Head Teller at bank’s Kampala road branch and asked to meet him. When they met she informed him that she had
secured a 1.5m USD deal with M/s Basco paints, but that she needed USD 200,000 to pay commission Agents.
She asked him to get her that money claiming that the Basco paint deal was a sure deal, and that the USD 200,000
would be refunded that very day with interest of USD 20,000. Lwamulungi got bank money and gave it to her the next day.
see attachment for further reading.
Uganda vs Kamya Valentino & Three Others
In 2015, the Financial Intelligence Authority received information indicating that an accountant with the Embassy of
Sweden in Uganda was being investigated for suspected embezzlement of UGX 8.4 billion from his employer. It was
indicated that this accountant would transfer the proceeds of crime into bank accounts belonging to his associates,
including his wife.
Subsequent investigations revealed that he had used some of the money to acquire properties mainly real estate and
high-end motor vehicles, but disguised ownership of these properties by registering them in the names of a fake company
in which his father in-law was a shareholder. Other properties were registered in the names of his wife.
The Financial Intelligence Authority aided the investigations by tracing and halting transactions on the bank accounts into
which some of the proceeds of crime had been deposited. This was done to prevent flight of funds, and to ensure a
successful asset recovery process after conviction.
The accused was convicted on 28th July, 2020 of seven counts of money laundering under a plea bargain. He was sentenced
to three years’ imprisonment and agreed to compensate the Swedish Embassy the full sum of UGX 8.4 billion after selling all
the properties he had acquired using the stolen funds. In addition, his wife and father in-law were convicted of money
laundering for their roles in concealing the illicitly acquired property.
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