Imagine a young software developer in Kampala. He’s just finished building a smart-contract application that could help farmers track produce payments without relying on brokers. He’s hopeful, energized, but frustrated. Because while his app runs on cryptocurrency protocols, Uganda doesn’t recognize any of that as legal tender. His innovation, though technically sound and globally viable, floats in a legal grey zone. That’s not just his dilemma—it’s Uganda’s. Back in October 2019, Finance Minister Matia Kasaija declared before the country that government does not recognize any cryptocurrency as legal tender. It was a firm stance, probably grounded in caution, but one…
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Beneath the spotless surface of a perfectly balanced budget, the Financial Intelligence Authority (FIA) is grappling with deeper issues of missed targets, shifting priorities, and implementation failures, an audit report…
In a ruling that could redefine customer-bank relationships in Uganda’s financial sector, the High Court of Uganda has found Equity Bank Uganda Limited guilty of unlawfully freezing a customer’s account, a decision that may set a precedent for financial institutions operating in the country. The case, Barigye Innocent Herbert Baitwababo v. Equity Bank Uganda Limited, stemmed from the bank’s decision to freeze Barigye’s account over what it deemed suspicious transactions. However, Hon. Justice Ssekaana Musa ruled that Equity Bank acted in breach of its contractual obligations, as the customer had provided sufficient documentation to justify the funds in question. Background…
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The Financial Intelligence Authority (FIA) has expressed frustration over failure by cryptocurrency operators to register with the government agency. Cryptocurrency trading, also known as mining, is a growing global wave which is increasingly tilting the traditional global financial system. But Sydney Asubo, the FIA executive director, says they have been asking cryptocurrency operators to register but very few have responded. “Virtual assets service providers are now in category 16 of the most vulnerable to terrorism financing and money laundering. In 2020, we gave them one month to register but only a few responded,” he says. Asubo said there is a…
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Court has given the state one month within which to complete investigations into the alleged money laundering case against human rights lawyer, Nicholas Opiyo. Grade One Magistrate Moses Nabende of the Kololo based Anticorruption Court issued the one month ultimatum requiring the state to the Director of Public Prosecutions (DPP) to address court on the status of investigations and also when to return Opiyo’s property which were confiscated at arrest in December 2020. The property include a bag, laptop, mobile phone, his passport and hard cash, all which his lawyers; David Mpanga and Elison Karuhanga said their seizure is a…
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Tomorrow, December 28th 2020, human rights lawyer, Nicholas Opiyo will appear before the High Court to answer charges of Money Laundering contrary to Sections 3 (c) 116 and 136(1)(a) of the Anti-Money Laundering Act (2017). According to the charges, Mr. Opiyo Nicholas on the 8th Day of October 2020 at Absa Bank, Garden City Branch, Kampala District, acquired USD340,000 (Three Hundred Forty Thousand United States Dollars) through Absa Bank, Account No.6004078045 in the names of Chapter Four Uganda, knowing at the time of receipt that the said funds were proceeds of crime. Mr. Opiyo who also doubles as the…
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The Financial Intelligence Authority FIA has downplayed the significance of notices being sent to some customers of commercial banks informing them of the identification requirements when making transactions with their banks.Some customers of some banks have been receiving the communication saying that it is in line with the FIA requirements. “Dear Customer, as a regulatory requirement by FIA, you will need to present your NIN or passport for all cash/cheque transactions. For queries, call 0800222333,” a notice from Absa Bank reads. Asked as to whether the FIA directed the banks to issue the notices and why, or whether it targeted specific individuals,…
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Although they are yet to receive a copy of the detailed judgement in which Diamond Trust Bank Uganda, alongside Diamond Trust Kenya, were ordered to pay business man Ham Kiggundu UGX120 billion and an additional interest of UGX9.6 billion, the Uganda Bankers’ Association has released a statement saying they intend to join DTB as an interested party in its appeal at the High Court to determine the case on its merits. The Association is also concerned about the impact of the ruling on the entire banking industry saying that it has sent shockwaves across the industry and stakeholders. The statement…
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By Sydney Asubo With people facing confinement or strict social distancing measures, in-person banking and access to other financial services being difficult, and unnecessarily exposes people to the risk of infection. The Financial Intelligence Authority (FIA) encourages the fullest use of responsible digital customer onboarding and delivery of digital financial services in light of social distancing measures put in place by the Government of Uganda. While unintended, these measures may provide new opportunities for criminals and terrorists to generate and launder illicit proceeds. The FIA advises financial institutions to remain alert about malicious or fraudulent transactions similar to those that…
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The Executive Director of the Financial Intelligence Authority (FIA) Mr. Sydney Asubo has said his organisation is yet to get any report from the Inspectorate of Government (IG) regarding their…
