Global Financial Integrity (GFI) has released a new report entitled A Scoping Study of Illicit Financial Flows Impacting Uganda.
It says illicit financial flows (IFFs) are helping to drive high levels of outflows from Uganda, a process that is undermining development efforts.
IFFs easily created
GFI, a non-profit Washington-based research and lobbying firm centred on IFFs, says in its report that insufficient levels of financial transparency, both globally and domestically, provide an environment in which IFFs out of Uganda are easily created.
Other factors enabling IFFs in Uganda include a lack of government accountability coupled with a regulatory system that can incentivise financial crime the report says.
Uganda will struggle to meet its goal of rising to middle income status and reducing its reliance on foreign debt unless it increases efforts to combat commercial tax evasion, corruption, and money laundering of criminal proceeds and terrorist financing, GFI says.
It suggests that three policy areas should be the central focus for the government. It should eliminate the allowance and use of anonymous companies in the economy, reduce the ease and volumes of trade misinvoicing, and enforce anti-money laundering laws, particularly within the banking sector.
GFI’s new report A Scoping Study of Illicit Financial Flows Impacting Uganda can be found here.
Categories: Trade Based Financial crimes News