The Anti- Money Laundering Act, 2013 (AMLA) as amended has Non-Government Organizations (NGOs) as accountable persons and therefore are subject to the requirements under the AML legislation and regulations.
All NGOs are required by the AMLA and the AML Regulations to fulfill certain obligations. These obligations include:
- Registration with the Financial Intelligence Authority (FIA) purpose of establishing the identity of an entity to be able to be supervised by the FIA.
- Ensure that there are internal controls to preventmoney laundering and financing of terrorism.
- Appoint a Money Laundering Control Officer,
- Reporting Large Cash Transactions either domestic or foreign exceeding one thousand currency points equivalent of UGX. 20,000,000/=
Know Your Beneficiaries and Partners:
NGOs must ascertain correct and complete identification particulars of each of its beneficiary (person, group of persons or organization) who receives cash or services or in-kind contributions. Must obtain relevant identification documentation which can include a valid passport, national identification card or driver’s license to identify the donor or beneficiary. The identity so established should then be verified through reliable and independent sources.
Offences and penalties for non-compliance
Failure to comply with the obligations under the AMLA and the AML regulations may result in criminal and/or administrative sanctions. Penalties may include fines and terms of imprisonment. Sanctions include possible revocation of the permit, issuance of directives and court orders.
NGOs should therefore ensure that there are internal controls to prevent money laundering and financing of terrorism. These include among others; auditing, carrying out compliance checks, file annual compliance reports, monitoring customers and transactions, putting in place Anti Money Laundering policies and procedures so as to maintain their legitimacy, build trust with stakeholders and contribute effectively to their mission.
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