Rhetoric or Reality? An Analysis of the Role of the Anti Money Laundering Act and the Anti Corruption Bill in the Fight against Corruption in Uganda

Abstract

Corruption is the economic crime with the furthest reaching implications in Uganda. Corruption has been the subject of legislation and litigation in Uganda. Some of this legislation focuses specifically on corruption, while other legislation serves an ancillary role in the fight against corruption. But it is impossible to attempt to benefit from the proceeds of corruption without laundering them first. To this extent, these vices are not mutually exclusive. To add to the considerable list of anti-corruption legislation already on the books, the Uganda Parliament recently enacted the Anti Money Laundering Act of 2013 (AMLA). This paper examines the AMLA, which now forms the main axis of AML legislation in Uganda. The paper is limited in its analysis to the context of corruption. The paper analyses the various parts of the Act, highlighting how useful they might be in the fight against corruption. The paper also examines the usual ways in which the proceeds of corruption are laundered and some vulnerabilities to which attention should be paid. At the time of writing, there are ongoing efforts to amend the Anti-Corruption Act to deal largely with evidence gathering and enforcement of confiscation orders. The paper considers to what extent these amendments might relate with or affect the AML enforcement regime. In the final analysis, the paper concludes that although some parts of the Act were fairly drafted and in line with both international standards and best practices, there are key areas for improvement. There is also need to adopt an approach that harmonizes the legal regime and enforcement mechanisms on AML and anticorruption in Uganda. Additionally, the gravity of the effect this law will have on the fight against corruption will depend on the political will of those charged with its enforcement.