This is the version of this Act as it was from 1 November 2013 to 25 May 2017. Read the version currently in force.
- Is amended by Anti-Money Laundering (Amendment) Act, 2017
- Is amended by Anti-Money Laundering (Amendment of Second Schedule) Instrument, 2020
Anti-Money Laundering Act, 2013
Act 12 of 2013
- Published in Uganda Gazette no. 55 on 1 November 2013
- Assented to on 2 October 2013
- Commenced on 1 November 2013
- [This is the version of this document as it was from 1 November 2013 to 25 May 2017.]
Part I – Preliminary
1. InterpretationIn this Act, unless the context otherwise requires—“accountable person” means any person listed in the Second Schedule to this Act;“authorised officer” means the Executive Director or Deputy Executive Director of the Financial Intelligence Authority, a prosecutor of the Director of Public Prosecutions, or a police officer of the rank of assistant inspector of police or higher;“Authority” means the Financial Intelligence Authority established under Part IV;“beneficial owner” means any natural or legal person or any other entity including any charitable organisation, natural or juridical, including but not limited to a corporation, partnership, trust or estate, joint stock company, association, syndicate, joint venture or any other unincorporated organisation or group, capable of acquiring rights or entering into obligations;“Board” means the Financial Intelligence Authority Board established under Part IV;“cash” means coins and bank notes of Uganda or of another country that are designated as legal tender and that circulate as and are customarily used and accepted as a medium of exchange in the country of issue;“competent authority” means investigative, prosecuting, judicial, regulatory or supervisory authorities of the Government of Uganda and includes the Financial Intelligence Authority.“confiscation”, which includes forfeiture where applicable, means the permanent deprivation of property by an order of court;“court” means the High Court;“crime” means—(a)any activity that is a crime, offence or violation under the laws of Uganda;(b)any activity outside the jurisdiction of Uganda which, had it taken place in Uganda, would be a crime, offence or violation under the laws of Uganda.“currency point” has the value given to it in the First Schedule of this Act in relation to currency point;“defendant” means a person charged with a crime, whether or not he or she has been convicted, and includes, in the case of a proceeding for a restraining order under sections 71 to 82, a person who is about to be charged with a crime;“document” means any record of information and includes—(a)anything on which there is a writing;(b)anything on which there are marks, figures, symbols, or perforations having meaning for persons qualified to interpret them;(c)anything from which sounds, images or writings can be produced, with or without the aid of anything else;(d)a map, plan, drawing, photograph or similar thing;(e)an electronic document.“financial institution” means a person who carries on or transacts in the business of a bank or a credit institution, as defined in the Financial Institutions Act, or an insurance company licensed under the Insurance Act;“freezing” or “seizure” means temporarily prohibiting the transfer, conversion, disposition or movement of property or temporarily assuming custody or control of property on the basis of an order issued by a court;“gift” means any transfer of property by a person to another person directly or indirectly—(a)after the commission of a crime;(b)for a consideration the value of which is significantly less than the value of the consideration provided by the first person; and(c)to the extent of the difference between the market value of the property transferred and the consideration provided by the transferee;“gift caught by this Act” means a gift made by the defendant at any time after the commission of the crime, or if more than one, the earliest of crimes, to which the proceedings for the time being relate, and the court considers it appropriate in all circumstances to take the gift into account;“material” means documentary material of any kind and includes information stored in a computer, disc, cassette, or on microfilm, or preserved by any mechanical or electronic device;“Minister” means the Minister responsible for Finance, Planning and Economic Development;“monetary instrument” includes currency of any state or country, travelers cheques, bearer negotiable instruments, bearer investment securities, bearer securities, stock on which title is passed on delivery and similar material;“monetary transaction” means a transaction that is conducted or concluded using a monetary instrument;“money laundering” is the process of turning illegitimately obtained property into seemingly legitimate property and it includes concealing or disguising the nature, source, location, disposition or movement of the proceeds of crime and any activity which constitutes a crime under section 116 of this Act;“occasional transaction” means any transaction involving cash that is conducted by any person other than through an account in respect of which the person is a customer;“payable-through accounts” means correspondent accounts that are used directly by third parties to transact business on their own behalf.“person” means any natural or legal person or any entity (including any charitable organisation), natural or juridical, including but not limited to a corporation, partnership, trust or estate, joint stock company, association, syndicate, joint venture, or other unincorporated organisation or group, capable of acquiring rights or entering into obligations;“politically exposed persons” means individuals who are or have been entrusted with prominent functions in a country, for example Heads of State or of government, senior politicians, senior government, judicial or military officials, senior executives of state owned corporations, and important party officials as well as family members or close associates of such individuals;“proceeds” means any economic advantage including property derived from or obtained, directly or indirectly, from the committing of a crime, and includes property later successively converted, transformed or intermingled, as well as income, capital or other economic gains derived from such property at any time after the committing of the crime;“property” means assets of every kind whether corporeal or incorporeal, moveable or immoveable, tangible and legal documents or instruments evidencing title to or interest in such assets;“provisional measures” means those actions set out in sections 44 to 82 of this Act;“realisable property” means any property held by a defendant and any property held by a person to whom a defendant has directly or indirectly made a gift caught by this Act;“realisation” means converting any kind of property into money, such as by sale;“recognisance” means a bond or obligation, entered into and recorded before a court or magistrate, by which a person engages himself to perform some act or observe some condition such as to appear when called upon, pay a debt or keep the peace;“record” means any material on which data are recorded or marked and which is capable of being read or understood by a person, computer system or other device;“requesting State” means any State which makes a request under the provisions of Part VI;“shell bank” means a bank incorporated in a jurisdiction in which it has no physical presence and which is unaffiliated with a regulated financial group;“suspicious transaction” refers to a transaction which is inconsistent with a customer’s known legitimate business or personal activities or with the normal business for that type of account or business relationship, or a complex and unusual transaction or complex or unusual pattern of transaction;“tainted property” means property used in or in connection with the commission of a crime or constituting the proceeds of crime;“transaction with no apparent or visible legitimate economic purpose” includes—(a)a transaction that gives rise to a reasonable suspicion that it may involve the laundering of money or the proceeds of any crime and is made in circumstances of unusual or unjustified complexity;(b)a transaction whose form or features suggest that it might be intended for an illegal purpose, or the economic purpose of which is not discernible;(c)a customer-relationship with the financial institution that does not appear to make rational economic sense, e.g., a customer having a large number of accounts with the same bank, frequent transfers between different accounts or inordinately high liquidity;(d)a transaction in which assets are withdrawn immediately after being deposited, unless the customer’s business activities furnish plausible reason for immediate withdrawal;(e)a transaction that cannot be reconciled with the usual activities of the customer(s) of the financial institution or branch office in question, and in which the reason for the customer’s choice of that particular financial institution or branch cannot be ascertained;(f)a transaction which, without plausible reason, results in the intensive use of what was previously a relatively inactive account, such as a customer’s account which shows virtually no normal personal or business related activities but is used to receive or disburse unusually large sums which have no obvious purpose or relationship to the customer or his business;(g)a transaction which is incompatible with the financial institution’s knowledge and experience of the customer in question or with the purpose of the business relationship.
Part II – Criminalisation of the laundering of proceeds of crime
3. Prohibition of money launderingIt is prohibited for any person to intentionally—
4. Evidence of state of mindKnowledge, intent or purpose required as an element of the crime of money laundering set out in this Part may be inferred from objective factual circumstances.
5. Separate crimeThe crime of money laundering under this Act—
Part III – Money laundering prevention measures
6. Identification of clients, customers, other persons and other anti-money laundering measuresAn accountable person—
7. Maintenance of recordsAn accountable person shall—
8. Recording and reporting cash and monetary transactions
9. Monitoring and reporting of suspicious transactions
10. Cross border movements of currency and negotiable bearer instruments
11. Availability of records
12. Admissibility of recordsA record, report, notice or other document kept under this Part, or a certified extract of any document, or a certified printout of any electronic record, is on its production in a matter before a court admissible as evidence of any fact contained in it of which direct oral evidence would be admissible.
13. Electronic funds transfers
14. Obligations of confidentiality not an impediment
15. Immunity from liabilityWhere a report is made or information is furnished in good faith under this Act, the accountable person, its employees, officers, directors, and agents shall not be criminally, civilly or administratively liable for complying with this Part or for breach of any restriction on disclosure of information imposed by contract or by any legislative, regulatory or administrative provision, regardless of the result of the communication.
16. Refraining from doing business with money launderersSubject to the requirements of section 13, every accountable person shall take such measures as are reasonably necessary to ensure that neither it nor any service offered by it is used by a person to commit or facilitate the crime of money laundering and financing of terrorist activities.
17. Continuing the transactionAn accountable person who is party to a transaction and is required to make a report under sections 8 or 9 may continue with and carry out the transaction in respect of which the report is required as long as the accountable person complies with the requirements of this Act.
Part IV – Financial Intelligence Authority
18. Establishment of the Authority
19. ObjectivesThe objectives of the Authority are to—
21. General powers of the AuthorityThe Authority may do all that is necessary or expedient to perform its functions effectively, and in particular—
22. Independence of the Financial Intelligence Authority
23. Financial Intelligence Authority BoardThe governing body of the Authority shall be the Board.
24. Functions of the Board
25. Composition of the Board
26. Tenure and removal of members of the Board
27. Meetings and procedures of the BoardTo conduct the business of the Board—
28. Executive Director
29. Functions of the Executive Director
30. Removal or suspension from office
31. Appointment of the Deputy Executive DirectorThere shall be a Deputy Executive Director who shall be appointed and serve in the same manner as the Executive Director as specified in sections 28 and 30.
33. Declaration of assetsNotwithstanding the provisions of any other law, a member of the Board and staff of the Authority shall declare their assets and liabilities to the Inspectorate of Government within one month before taking up office and subsequently at periodical interval as required by the Leadership Code Act.
34. Oath of secrecyA member of the Board and a member of staff of the Authority shall before assuming the duties of his or her office subscribe to an oath of allegiance.
35. Reports to the Board
36. Reports to the minister
37. Receipt of reports and informationThe Authority—
38. Disclosure and use of information
39. Contracts and agreements
40. Legal proceedings
41. Funds of the AuthorityThe funds of the Authority shall consist of money appropriated annually by Parliament for the purposes of the Authority, any Government grants made to it, and any other money legally acquired by it.
42. Fiscal year of the AuthorityThe fiscal year of the Authority shall be the same as that of Government.
43. AuditThe Auditor General, or an auditor appointed by the Auditor General to act on his or her behalf, shall audit and report on the accounts and financial records of the Authority.
Part V – Seizure, freezing and forfeiture of assets in relation to money laundering
44. Application for production orderWhere an authorised officer has reasonable grounds for suspecting that any person has possession or control of—
45. Issuance of production orderThe court may, if it considers that there are reasonable grounds for so doing, make an order requiring a person to produce to an authorised officer, at a time and place specified in the order, any document or documents of the kind referred to in section 44.
46. Authority to inspect, copy and retain under the production order
47. Relief from the courtWhere production of documents pursuant to an order of court under section 45 would be unreasonably oppressive or burdensome or otherwise would create extreme hardship, the person subject to the order may apply to the court for relief from the order and the court may modify or revoke the order.
48. Production orders in relation to foreign crimesWhere a foreign State requests assistance to locate or seize property suspected to be tainted property in respect of a crime within its jurisdiction, the provisions of sections 44 to 47 apply mutatis mutandis.
Document search warrant
49. Authority to search for and seize documents relevant to locating property
50. Application for document search warrantWhere—
51. Issuance of document search warrantWhere an application is made under section 50 for a warrant to search land or premises, the court may issue a warrant authorizing an authorised officer whether or not named in the warrant, with such assistance and by such force as is necessary and reasonable—
52. Preconditions for a document search warrantA court shall not issue a warrant under section 51 unless it is satisfied that—
53. Particulars of document search warrantA warrant issued under section 51 shall state—
54. Authority to seize documents and other evidenceIf during the course of searching under a warrant issued under section 51, an authorised officer finds—
55. Search warrants in relation to foreign crimesWhere a foreign State requests assistance to locate or seize property suspected to be tainted property in respect of a crime within its jurisdiction, the provisions of sections 49 to 54 apply with the necessary modifications.
56. Application for monitoring order
57. Issuance of monitoring orderWhere an application is made for a monitoring order under section 56, the court may make an order directing that a financial institution disclose information obtained by the institution about transactions conducted through an account held by a particular person with the institution.
58. Particulars of monitoring orderA monitoring order issued under section 57 shall—
59. Preconditions for monitoring orderThe court shall not issue a monitoring order under section 57 unless it is satisfied that there are reasonable grounds for suspecting that the person in respect of whose account the order is sought—
60. Monitoring orders not to be disclosed
Warrant for tainted property
61. Authority to search and seize tainted property
62. Application for tainted property search warrantWhere an authorised officer has reasonable grounds for suspecting that there is, or may be within the next seventy two hours, tainted property of a particular kind—
63. Issuance of search warrantWhere an application is made under section 62 for a warrant to search a person, land or premises, the court may issue a warrant authorising an authorised officer whether or not named in the warrant, with such assistance and by such force as is necessary and reasonable—
64. Charge not a prerequisite to issuance
65. Particulars of search warrantA warrant issued under section 63 shall state—
66. Authority to seize other tainted property or evidence
67. Emergency searches and seizures
68. Record of property seizedAn authorised officer who seizes property under sections 61 through 67 shall detain the property seized, make a written record of it, and take reasonable care to ensure that the property is preserved.
69. Return of seized property
70. Search for and seizure of tainted property in relation to foreign crimesWhere a foreign State requests assistance to locate or seize property suspected to be tainted property in respect of a crime within its jurisdiction, sections 61 to 69 apply with the necessary modifications.
71. Application for restraining orderWhere a person has—
72. Contents of application for restraining orderAn application made under section 71 may be made ex parte to the court and shall be accompanied by an affidavit setting out—
73. Issuance of the restraining orderWhere the court is satisfied that there are reasonable grounds to believe that there exists property in respect of which a restraining order may be made under this Act, the court may make an order—
74. Contents of restraining order
75. Undertakings by the GovernmentBefore making an order under section 73, the court may require the government of Uganda to give such undertakings as the court considers appropriate with respect to the payment of damages or costs, or both, in relation to the making and execution of the order.
76. Notice of application for restraining orderBefore making a restraining order, the court may require notice be given to, and may hear any person who, in the opinion of the court, appears to have an interest in the property, unless the court is of the opinion that giving such notice before making the order would result in the disappearance, disposal, dissipation or reduction in value of the property.
77. Service of restraining orderA copy of the restraining order shall be served on the person affected by the order in such manner as the court directs or as may be prescribed by law.
78. Registration of restraining order
79. Setting aside disposition
80. Duration of restraining orderA restraining order shall remain in force until—
81. Review of restraining orders
82. Extension of restraining ordersAn authorised officer may apply to the court that made a restraining order for an extension of the period of the operation of the order, and, upon such an application, the court may extend the operation of a restraining order for a specified period, if it is satisfied that a confiscation order may be made in respect of the property or part of it or that a pecuniary penalty order may be made against the person.
Confiscation and pecuniary penalty orders
83. Application for confiscation order or pecuniary penalty order
84. Notice of applicationWhere an applicant makes an application under subsection (2) or (4) of section 83—
85. Procedure for confiscation order where person dies or absconds
86. Confiscation order on conviction
87. Effect of confiscation order
88. Voidable transfersThe court may, before making a confiscation order and, in the case of property in respect of which a restraining order was made, notice for it given and the order served in accordance with this Act, set aside any conveyance or transfer of the property that occurred after the seizure of the property or the service of the restraining order, unless the conveyance or transfer was made for valuable consideration to a person acting in good faith and without notice.
89. Protection of third parties
90. Discharge of confiscation order on appeal and quashing of conviction
91. Payment instead of a confiscation orderWhere the court is satisfied that a confiscation order should be made in respect of the property of a person convicted of a crime, but that the property or any part or interest cannot be made subject to such an order and, in particular—(a)cannot, on the exercise of due diligence, be located;(b)has been transferred to a third party in circumstances which do not give rise to a reasonable inference that the title or interest was transferred for the purpose of avoiding the confiscation of the property;(c)is located outside the Republic of Uganda;(d)has been substantially diminished in value or rendered worthless; or(e)has been commingled with other property that cannot be divided without difficulty,the court may, instead of ordering the property or interest in it to be confiscated, order the person to pay to the Republic of Uganda an amount equal to the value of the property, part or interest.
Pecuniary penalty orders
92. Pecuniary penalty order on conviction
93. Rules of determining benefit and assessing value
94. Statements relating to benefits from commission of crime
95. Amount recovered under pecuniary penalty order
96. Lifting the corporate veil
97. Discharge of pecuniary penalty ordersA pecuniary penalty order shall be discharged—(a)if the conviction of the crime or crimes in reliance on which the order was made is quashed and no conviction for the crimes or crimes is substituted;(b)if the order is quashed; or(c)on the satisfaction of the order by payment of the amount due under the order.
Realisation of property
98. Realisation of property
99. Application of proceeds of realisation and other sums
100. Treatment of realisable property in bankruptcy or winding up
101. Disposition of confiscated property
102. Property of foreign crimesThe court may, in accordance with the law, order the confiscation of any property in its territorial jurisdiction when it is connected to a crime committed against the laws of another State, and when that crime would have been a crime if committed within its jurisdiction.
103. Special account
104. Management of restrained and confiscated property
Part VI – International cooperation
105. International agreementThe Minister or the authorised officer may enter into an agreement with any ministry, department, public authority or body outside Uganda for the collection, use or disclosure of information, for the purpose of exchanging or sharing information outside Uganda or for any purpose under this Act.
106. General provisionsA court or other competent authority of Uganda shall cooperate with courts or other competent authority of another State in taking appropriate measures to provide assistance in matters concerning money laundering and other organised crimes, including the exchange of information, joint investigations and court proceedings such as provisional measures, confiscation and extradition, in accordance with this Act and any international conventions, treaties, agreements or arrangements to which Uganda is a party and within the limits of the legal systems of Uganda.
107. Request for mutual legal assistance
108. Judgment as evidenceA final judicial order or judgment that provides for the confiscation of property, connected to money laundering or other crimes, issued by a court or other competent authority of another State may be recognised by a Ugandan court as evidence that the property referred to by such order or judgment may be subject to confiscation in accordance with the laws of Uganda.
109. Request for confiscation
110. Transfer of proceeds of crime to requesting state
111. Other mutual assistance
112. Disposal of confiscated property
114. Provisions common to requests for mutual assistance and requests for extradition
115. Witnesses in custodyA person who is being detained or is serving a sentence in Uganda whose presence in another State is requested for the purposes of identification, testimony or otherwise providing assistance in obtaining evidence for investigations, prosecutions or judicial proceedings in relation to crimes covered by this Act may be transferred where—
Part VII – Offences and penalties
116. Prohibition of money launderingA person who—
118. Falsification, concealment, etc of documentsA person who falsifies, conceals, destroys or otherwise disposes of or causes or permits the falsification, concealment, destruction or disposal of any document or material which is or is likely to be relevant to an investigation into money laundering or is subject to any order made in accordance with provisions of this Act, commits an offence.
119. Failure to identify personsAn accountable person who performs any act to give effect to a business relationship or a single transaction in contravention of section 6 (b) commits an offence.
120. Failure to keep recordsAn accountable person who fails to keep records of information in accordance of section 7 or maintain such records in accordance with section 7 commits an offence.
121. Facilitating money launderingAn accountable person or its officers or employees, who knowingly allows it or its services to be used to commit or facilitate money laundering in contravention of section 16 commits an offence.
122. Destroying or tampering with recordsA person who willfully tampers with a record kept in terms of section 6 or willfully destroys such a record, otherwise than in accordance with section 7 commits an offence.
123. Refusal, omission, neglect or failure to give assistanceAn accountable person who refuses, omits, neglects or fails to give assistance to a representative of the Authority in accordance with section 11 commits an offence.
124. Failure to report cash transactionsA person who intentionally fails to report to the Authority the prescribed information in respect of cash transactions, in accordance with section 8 commits an offence.
125. Failure to report suspicious or unusual transactions
126. Failure to report conveyance of cash into or out of UgandaA person who intentionally fails to notify the customs and excise department of the Uganda Revenue Authority or who intentionally files a false notification regarding the cross-border transportation or sending of currency or negotiable bearer instruments which exceed the prescribed value, in accordance with section 10, commits an offence.
127. Failure to send a report to AuthorityA person referred to in section 10(1)(b) of Part III who fails to send a report regarding the conveyance of cash to the Authority in accordance with that section, commits an offence.
128. Failure to comply with orders made under the ActA person who is subject to an order issued under Part V of this Act, and—
129. Contravening a restraining orderA person who intentionally contravenes a restraining order issued under section 73 of Part V, by disposing of or otherwise dealing with property that is subject to the restraining order, commits an offence.
130. Misuse of informationA person who—
131. Obstructing an official in performance of functionsA person who obstructs, hinders or uses physical force, threats or intimidation to interfere with a judge of the court or an authorised officer in the performance of the duties or the exercise of the powers in terms of this Act, commits an offence.
132. Influencing testimonyA person who uses physical force, threats or intimidation or promise, offering giving of an undue advantage to induce false testimony or to interfere in the giving of testimony or the production of evidence in a proceeding in relation to the commission of offenses under this Act, commits an offence.
133. General non-compliance with requirements of this Act and conducting transactions to avoid reporting duties
134. Unauthorised access to computer system or application or data
135. Unauthorised modification of contents of computer systemA person who, without authority to do so, willfully causes a computer system that belongs to, or is under the control of, the Authority, or any application or data held in such a computer system, to be modified, destroyed, erased or the operation or reliability of such a computer system, application or data to be otherwise impaired, commits an offence.
137. DefencesWhere a person who is an employee, director, trustee, or a partner of accountable person is charged with committing an offence under section 126, that person may raise as a defence the fact that he or she had—
Part VIII – Miscellaneous
138. Act not to limit powers of investigating authorities or supervisory bodiesThis Act does not detract from—
139. Amendment of Schedules
140. ImmunityThe Authority or an employee or representative of the Authority, or any other person performing a function or exercising power under this Act, is not liable for anything done in good faith in terms of or for furthering the objectives of this Act.
141. RegulationsThe Minister may, upon advice of the Board, make regulations as may be required for carrying into effect any of the provisions of this Act.
History of this document
27 November 2020
26 May 2017
01 November 2013 this version
Published in Uganda Gazette number 55
02 October 2013
|Anti-Money Laundering Regulations, 2015||Statutory Instrument 75 of 2015|