ANTI-MONEY LAUNDERING: Is your Business or Organisation Compliant?
- September 15, 2020
- Posted by: Joseph Okuja
- Category: Alerts & Insights
The Financial Intelligence Authority (FIA) compliance system is Government’s response towards combating money laundering and terrorism funding activities among legal entities. In its effort to establish a proper system for financial intelligence gathering, Government set up the FIA, an authority which is bestowed with powers to investigate suspicious financial transactions and to stop any terrorism and money laundering activities before they harm the economy.
As a compliance and monitoring measure, Individuals, Businesses and Legal Entities are required under the Anti-Money Laundering Regulations, to file an Annual Compliance Report by the 31st day of January every year. This period may be extended from time to time by the FIA.
What requirements are necessary?
You must be registered with FIA. The Form for registration can be got from the FIA webpage www.fia.go.ug or your business advisor may provide this. Thereafter, you become an accountable person and must file a Compliance Report (See template on the FIA webpage)
Is there a requirement for Due Diligence?
All accountable persons and entities engaged in cross-border transactions, finance and/or with large financial transactions of more than UGX.20,000,000/= must record these transactions in Form A. The information kept must disclose the sender and recipient of the money, and must also disclose the source of the money. This Form must be kept at least for 10 years. Due diligence also includes reporting suspicious financial transactions.
In order to mitigate risks, FIA recommends that every accountable person should appoint a money laundering Control Officer to ensure adherence in as far as combatting money laundering is concerned.
Record keeping is important. Affected persons are expected to all records of transactions, even for small amounts. This is to ensure that in the event of any risk or exposure, the questionable persons can be easily traced. The Records also prevent you from being found complacent and a co-conspirator to any money laundering or financial crime.
How should you file your FIA Annual Compliance Report?
Go to the FIA webpage and search ‘Reporting’. After filing your information, send it to email@example.com
You may seek assistance from your financial or legal advisor. Remember to adhere to the timelines set.
At LIBRA, we help you “Get it Right the First Time”!