Expedite AML processes - BoU boss

By Vision Reporter

The Executive Director Supervision, Bank of Uganda, Justine Bagyenda, has urged all stakeholders in the banking industry to embrace the Anti-Money Laundering law in offing and also expedite the process of putting in place systems to curb money laundering.

Bagyenda said this while opening a workshop organised by Standard Chartered Bank to discuss the implications of having an Anti-Money Laundering law (AML).

Guest Speaker Nishanth Nottath, regional head of Financial Crime Intelligence Operations Standard Chartered Middle East, Pakistan and Africa , shared his experience on good practice on money laundering prevention and the uses and benefits of automated transaction surveillance/monitoring systems.

He shared an overview of AML Program, Customer Due Diligence (CDD) / Know Your Customer (KYC) – Risk Based approach, sanctions, Risk assessment, governance, assurance and intelligence.

He highlighted the different types of risks, behavioral patterns of money launderers and systems that can be used like the Automated Transaction Surveillance to fight AML crime.

Other experts invited from KPMG discussed their recently issued money laundering survey for Africa for participants to appreciate what is being done in other countries to curb money laundering.

Alex Mwangi from KPMG, Risk Consulting (Forensic - Regulatory Compliance), took the participants through the AML Survey – Africa which was conducted in 11 African countries, namely; South Africa, Angola, Botswana, Mauritius, Zambia, Kenya, Tanzania, Uganda, Rwanda, Ghana and Nigeria. A total of 59 banks responded to the survey.

Mwangi in his presentation advised that it is imperative for policymakers and lawmakers across the globe to ensure that the banking system cannot be used for money laundering and terrorist financing purposes.

He highlighted that the estimated amount of money laundered globally in one year equates between two and five percent of global GDP, or $800b to $2trn.

CEO Standard Chartered Bank, Herman Kasekende, applauded Government for passing the AML bill. He said:

“I wish to thank the government and Parliament in particular for the passing of the AML bill. It was a critical yet bold move by the government that is welcome. The passing of the AML Bill shows Government’s commitment to tackle the thorny yet global issue of fighting money laundering. We are eagerly waiting for it to be signed into law.”

Kasekende reiterated that with this AML Bill coming into effect, there will be clear structures and processes of reporting transactions that are suspicious and a concerted effort for all stakeholders to curb money laundering.

More than 10 years after 9/11, regulators themselves have increasing expectations, becoming stricter on the banking industry, specifically as the expectations apply to combating money laundering and terrorist financing.

This has resulted in the cost of running Anti-Money Laundering (AML) programmes continuously rising. Banks are looking at ways to ensure greater efficiencies inorder to curtail the increasing cost of compliance.

The workshop was wrapped up by Emily Gakiza, Senior Legal Counsel, Standard Chartered Bank who shared about the Implications of having an AML law in Uganda

Gakiza said the AML law will ensure that Uganda is not used as a conduit for dirty money, help fight against corruption or ill-gotten gains. The law will help with recovery of illegally obtained property and funds and improve governance.

Some of the participants included; Stanbic Bank, Bank of Uganda, Centenary Bank, Orient Bank, NC Bank, UBA, ECOBANK, FINA Bank, Post Bank among others.