Kampala, Uganda | URN | The rapid economic transformation taking place in the Bunyoro sub-region could create new opportunities for criminals to move or conceal illicit funds, the Financial Intelligence Authority (FIA) has warned.
The authority has identified land transactions, money lending, corruption in local governments, cross-border trade, and smuggling among activities that could be exploited for illicit financing as oil and gas-related investment and other economic activities expand in the region.
Monica Ndyamuhimbise, the Principal Compliance and Outreach Officer at FIA, said the growing volume of money circulating in Bunyoro, driven partly by developments in the oil and gas sector, requires stronger scrutiny of financial transactions.
She said the discovery of oil has attracted investors and increased economic activity, but has also created opportunities that could be exploited by people seeking to conceal proceeds from illicit activities.
Ndyamuhimbise said land transactions and other businesses in the region could be used to move or disguise illicit proceeds, particularly where the source of funds is not adequately verified.
Bunyoro’s proximity to the Democratic Republic of Congo also presents a potential vulnerability because of cross-border trade and the movement of minerals and other goods, she said.
However, FIA did not cite a specific large-scale money-laundering case in Bunyoro during the media engagement. The concerns raised were presented largely as potential risks associated with the region’s expanding economy and cross-border activity.
Badru Mugabi, the Hoima Resident City Commissioner, said police crime reports in the region have identified land grabbing, money laundering and corruption in local governments among the financial crimes of concern.
He said the rapid development associated with Uganda’s oil and gas sector had increased the amount of money circulating in the region, creating opportunities that could be exploited by criminals.
Mugabi urged journalists to pay greater attention to financial crimes, saying illicit financial activities can have wider economic and security consequences.
He also cautioned members of the public against accepting money without considering its source, warning that proceeds from criminal activities can expose individuals and businesses to legal consequences.
Mugabi commended government agencies involved in combating illicit financing, saying stronger investigations and evidence-based reporting would help expose financial crimes.
Jossy Muhangi, the FIA Principal Communications Officer, said reports involving suspected money laundering and other financial crimes are referred to relevant government agencies for further investigation.
These include the Uganda Revenue Authority, the Inspectorate of Government and the Criminal Investigations Directorate.
Muhangi urged journalists investigating suspected financial crimes to rely on financial records, official documents and other verifiable evidence, while allowing all parties to respond to allegations before publication.
The FIA says its engagement with journalists is intended to improve understanding of money laundering and illicit financial flows and strengthen media reporting on financial crimes.
The concerns come as Bunyoro undergoes rapid economic change linked to oil and gas development, infrastructure investment and expanding commercial activity.
The challenge for authorities is to ensure that the increased flow of legitimate money into the region does not create opportunities for illicit funds to enter and circulate within the formal economy.
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