Border Cash Declarations: Uganda’s Step Against Money Laundering and Terrorism Financing
To enhance transparency and accountability in financial transactions, the government of Uganda has introduced a routine procedure applicable to individuals entering or leaving the country with negotiable bearer instruments or cash equivalent to or exceeding 1500 currency points, where one currency point equals UGX 20,000.
This procedure, which has been in effect for a considerable period, necessitates a declaration to be made to the Uganda Revenue Authority (URA) Customs at the border point. It is important to emphasize that no taxes are imposed on the declared money.
Implemented to combat money laundering and terrorism financing, this procedure aligns with standard global practices at border exits. In Uganda, it is mandated by Section 10(1) and Regulations 10(1)(a) and (b) of The Anti-Money Laundering Act of 2013.
Any sum equal to or exceeding 1500 currency points constitutes a restricted item, obligating the owner to declare it to Customs, thereby requiring passage through the red channel.
In essence, Uganda’s routine procedure for declaring negotiable bearer instruments or currency exceeding 1500 currency points is a critical measure in the fight against money laundering and terrorism financing.
This mandated process is not only a legal requirement but also a standard global practice fostering transparency and accountability in financial transactions.
The Declaration Process:
The declaration process has been designed to be efficient and user-friendly for travellers. Departing passengers must complete Form C (blue form), while arriving passengers complete Form D (yellow form). These forms, along with copies of the passport, are submitted to a URA Customs Officer for verification, ensuring the declared amount is accurate without direct handling of funds.
The process typically takes 15-20 minutes, after which travellers are free to proceed with their funds, exempt from taxation on the declared amount. Customs forwards the declaration forms to the Financial Intelligence Authority (FIA) for analysis and advisory purposes, maintaining confidentiality throughout.
If the FIA identifies any indications of funds financing criminal activities, it takes full control of the investigation. Recently, URA and the Financial Intelligence Authority conducted sensitization sessions for Customs officials at Entebbe International Airport, ensuring clients’ privacy throughout the process.
