BOU warns banks over failure to share fraud incident data
Kawere urged banks and payment firms to take information-sharing seriously, warning that non-cooperative institutions would soon face consequences.
Andrew Kawere, the central bank’s director of the National Payment Systems Department and chair of the Anti-Fraud Consortium, said that fraud remains one of the biggest threats to public trust in the financial system. (Photos by Ali Twaha)
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The Bank of Uganda (BOU) and the Uganda Bankers’ Association (UBA) have urged financial institutions, regulators, and law enforcement agencies to strengthen collaboration in the face of increasingly sophisticated financial crimes.
Andrew Kawere, the central bank’s director of the National Payment Systems Department and chair of the Anti-Fraud Consortium, said that fraud remains one of the biggest threats to public trust in the financial system.
Kawere urged banks and payment firms to take information-sharing seriously, warning that non-cooperative institutions would soon face consequences.
“We have restrained ourselves, but soon there will be consequences for failure to share information on the shared portal. We are closely monitoring the incidents and the submissions,” he said.
“Fraud is a major threat that hits the very foundation of the financial system – that is, confidence and trust. It instils fear among the financial services consumers and directly undermines basic trade – exchange of goods and services, which is enabled by the financial sector.
“This aside, fraud also impacts the integrity of the system with adverse consequences for financial and capital markets, investments, and ultimately distorts economic activity.”
Julius Kakeeto, the UBA chairman (L) and Prof. Arthur Mutambara.
He was speaking during the third Financial Sector Anti-Fraud Forum held in Kampala, organised by the central bank and UBA recently.
The 2024 Annual Police Crime Report, which showed a 1.6% rise in economic and corruption-related crimes, were valued at sh295b. Of these, 110 cases were related to bank and corporate fraud, worth about sh5.27b.
The Anti-Fraud Consortium (AFC), launched in April 2025, is now the central platform for collaboration between banks, fintechs, regulators, and law enforcement. It aims to close gaps in information sharing, law enforcement coordination, and public awareness.
In his keynote, Prof. Arthur Mutambara from the University of Johannesburg urged financial institutions to leverage the power of artificial intelligence in transforming the fight against financial fraud.
“It is time to embrace innovation, data, and cross-sector collaboration in building fraud-resilient ecosystems,” he said.
Julius Kakeeto, the UBA chairman, said the fight against fraud required a united front across both traditional and digital financial services.
“Despite our efforts, the threat of financial crime remains persistent and increasingly sophisticated,” he said.
Kakeeto noted that while traditional crimes such as loan fraud and identity theft persist, newer digital threats such as SIM-swap fraud, phishing, and ransomware are spreading fast.
“To effectively protect the economy, we must address both the human element— tackling internal collusion and the low levels of digital awareness —and the technological challenge of securing our digital platforms,” he said.
Judy Wambaire, company secretary and head of legal at KCB Bank, said in many cases, some fraudulent employees often cover for each other, delaying early fraud detection and enabling repeat offences in some organisations.
Marrietta Naiga, chief risk officer at Housing Finance Bank, said: “Insider-enabled fraud within banks is alarmingly high, and often unconscious. In 80% of cases I’ve investigated, staff were unknowingly complicit.
"Only 20% of staff act deliberately, often influenced by societal norms that glorify illicit wealth. The incentives can be very high, ranging from sh300m to sh1b, with down payments sometimes offered," she said.