Uganda loses about Shs 1.7 trillion (approximately USD 500 million) every year through illicit financial flows linked to corruption and other financial crimes, according to the Financial Intelligence Authority (FIA).
Speaking during a one-day workshop for media practitioners in Kabale District, organized by the FIA at Kings Hotel in Kabale Municipality on Thursday, Financial Intelligence Authority Principal Communication Officer Jossy Muhangi revealed that the money is often smuggled out of the country or transferred through illegal financial channels.
Muhangi explained that although non-governmental organizations (NGOs) were removed from the list of mandatory reporting entities under the Second Schedule of the law, the authority continues to monitor them using a risk-based approach, especially those operating in border areas or sectors considered high-risk.
He noted that NGOs remain an area of concern following risk assessments conducted by the authority, prompting continued surveillance in collaboration with other security and regulatory agencies.
Muhangi further warned that terrorism financing remains one of the major threats being tracked by authorities. He urged mobile money agents and the public to remain vigilant and ensure that all financial transactions follow proper identification procedures to prevent criminals from exploiting financial systems to fund illegal activities.
CUE IN MUHANGI……ON THE MATTER……ENG//
Meanwhile, Monic Ndyamuhimbisa, the Principal Compliance and Outreach Officer at the Financial Intelligence Authority, asked stakeholders and managers of Savings and Credit Cooperative Organizations (SACCOs) to be cautious about individuals depositing unusually large sums of money, warning that some could be involved in money laundering.
The Kabale Deputy Resident District Commissioner (DRDC) Michael Muramira Kyakashaari called on journalists and security agencies to remain vigilant against financial crimes as Kabale continues to attract more organizations and investments.
Kyakashaari noted that the growing number of NGOs and businesses setting up in Kabale requires closer monitoring to ensure transparency and accountability.
He warned that without proper oversight, large sums of money could flow into the district without clear accountability, raising concerns about money laundering and irregular transfers of funds abroad.
Kyakashaari also emphasized the need to closely monitor SACCOs, some of which now manage billions of shillings in savings and capital, to ensure they are not misused for suspicious financial activities.
CUE IN KYAKASHAARI……ON MONEY LAUNDERING……ENG//
