Examining the Role of the Law in Curbing Money Laundering in Uganda

Kyasimire Fridah

School of Law, Kampala International University, Uganda

ABSTRACT

This article examines the role of the law in curbing money laundering in Uganda. The article revealed that money laundering continues to be the most common form of financial crime in Uganda. Notably, the advancement in technology has further facilitated money laundering, particularly with the availability of electronic transfers, online gaming, and virtual casinos. Money launderers find it safer to deposit ‘dirty money’ in other countries to minimize the risk of detection. The availability of private financial institutions, such as high-end financial centres, has also increased the smuggling of cash. On this note, the study calls for regulators to examine the AML framework in light of technological developments that have opened new avenues for money laundering. To achieve this, they should conduct empirical studies to determine the effectiveness of the AML regime as well as assist them in devising new ways to counter money laundering. More importantly, all countries should strive for financial inclusion in order to overcome the challenges associated with implementing AML measures. What is more, achieving an optimal regulatory regime requires the concerned authorities to conduct a cost-benefit analysis of the purported benefits of the regulations against the alternative options. The analysis will assist in eliminating unsuitable and cumbersome legislation. Through conducting a qualitative and quantitative assessment of the cost and benefits of the AML legislation, the regulators can objectively view the impact of the regulations and verify if the benefits outweigh the potential costs to society.

Keywords: Authorities, Financial crimes, Legal provisions, Money laundering, Underdevelopment

CITE AS: Kyasimire Fridah. (2024). Examining the Role of the Law in Curbing Money Laundering in Uganda. RESEARCH INVENTION JOURNAL OF RESEARCH IN EDUCATION 4(3):65-70. https://doi.org/10.59298/RIJRE/2024/436570