A new report by the Financial Intelligence Authority (FIA) has revealed that tax crimes are the second-largest source of illicit funds for money laundering in Uganda, second only to corruption.
The Tax Crimes and Proceeds Risk Assessment Report, which was released at Kampala Sheraton Hotel on Thursday, highlights serious risks, including smuggling, undervaluation of goods, false declarations, and non-filing of tax returns.
“These activities undermine our tax system and damage our economy. To address these issues, we must increase our capacity to investigate tax-related money laundering and work closely across agencies and borders,” the Executive Director of FIA, Were Wandera, said at the release.
“The findings provided in this report will help us develop better policies and enforcement strategies. They will also guide our risk-based approach to supervision, ensuring that resources are allocated where they are most needed, in line with international standards
Mr Wandera urged URA to build momentum in prosecuting tax crimes with Money Laundering added on the charge sheet as a separate offence.
Speaking at the launch of the report, Mr Henry Musasizi, the State Minister for Finance (General Duties), encouraged all agencies responsible for implementing the respective measures in the action plan of the report to do so within the agreed timelines.
“Let me remind you that tax crimes and money laundering techniques are changing as criminals employ new technology tools,” said the minister, adding that Uganda should stay up-to-date with technological developments that are leading to the emergence of new risks.
