The Invisible Bankers

What the report says

The Independent Uganda reports that a new Global Financial Integrity study is drawing attention to the role of professionals such as lawyers, accountants, real-estate agents and trust and company-service providers in helping move, conceal or legitimize illicit funds in Uganda. The analysis says Uganda could be losing more than Shs2 trillion a year through illicit financial flows, with trade misinvoicing identified as a major factor in past years.

The report, released on Sept. 22, examines Uganda alongside Kenya and Ghana and argues that gaps in oversight of these professions create a blind spot in anti-money-laundering enforcement. Although Uganda’s rules place these sectors among “accountable persons,” the article says reporting and supervision remain limited, raising concerns that suspicious activity may not be reaching investigators.

To illustrate how illicit money can enter the formal economy, the report cites two Ugandan cases. One involved fraud at Equity Bank’s Oasis Mall branch in Kampala, where investigators traced proceeds into land, vehicles and businesses. Another involved a former embassy accountant accused of diverting billions of shillings and channeling funds through relatives, companies and property purchases.

The article also notes that Kampala’s property market is growing rapidly, making it harder to identify the real source of some funds. It says Uganda has a beneficial ownership register, but questions remain about whether company data is complete, verified and connected to other enforcement systems. The Financial Intelligence Authority did not respond to questions from The Independent about reporting, sanctions and enforcement.