Section 6: Strengthen national coordination and cooperation of

AML/CFT/PF matters The Mutual Evaluation Report (MER) 2016 on Uganda's AML/CFT measures and the National Risk Assessment (NRA) Report 2017 on Uganda's ML/TF risks and vulnerabilities identified gaps; some of which relate to implementation of ML, TF and PF. A robust legal and administrative framework to combat Proliferation Financing that is consistent with the UN standards, best practice and Financial Action Taskforce (FATF) standards and recommendations is key. Following the amendment of the Anti-Terrorism Act (2002) (see Anti-Terrorism Amendment Act 2022) to provide for the offence of proliferation financing, the Ministry of Internal Affairs hereby issues these guidelines on implementation of Targeted Financial Sanctions (TFS). 1.3. Guiding Legal Framework These guidelines are based on international best practices and the following national laws: i. the Anti- Money Laundering Act, 2013 as amended ii. the Anti-Terrorism Act, 2002 as amended iii. the Anti-Money Laundering Regulations, 2015 iv. the Anti-Terrorism Act Regulations, 2016 v. the FATF Recommendations (International Standards which include the 40 Recommendations) 1.4. Scope The guidelines are applicable to all accountable persons as defined in the Second Schedule to the Anti- Money Laundering Act 2013 (as amended). 2.0. Understanding Key Terms 2.1. Financial Action Task Force (FATF) FATF is an inter-governmental body established in 1989 by the Ministers of Finance of the G7 Member jurisdictions. The mandate of the FATF is to set standards and to promote effective implementation of legal, regulatory and operational measures for combating money laundering, terrorist financing and the financing of proliferation, and other related threats to the integrity of the international financial system. In collaboration with other international stakeholders, the FATF also works to identify national-level vulnerabilities with the aim of protecting the international financial system from misuse. The 40 FATF Recommendations set out a comprehensive and consistent framework of measures which countries should implement in order to combat money laundering and terrorist financing, as well as the financing of proliferation of weapons of mass destruction (WMD). The 40 FATF Recommendations, their Interpretive Notes and Guidance Notes constitute the international standards which, countries should implement through measures adapted to their particular circumstances. Uganda is obliged to be compliant with the FATF Standards. 2.2. Terrorism The Anti-Terrorism Act, 2002 (as amended) defines terrorism as an act carried out with the purpose of influencing the Government or intimidating the public or a section of the public and for a political, religious, social or economic aim, indiscriminately without due regard to the safety of others or property including; i. Intentional and unlawful manufacture, delivery, placement, discharge or detonation of an explosive or other lethal device, whether attempted or actual, in, into or against a place of public use, a State or Government facility, a public transportation system or an infrastructure facility, with the intent to cause death or serious bodily injury, or extensive destruction likely to or actually resulting in major economic loss; ii. Direct involvement or complicity in the murder, kidnapping, maiming or attack, whether actual, attempted or threatened, on a person or groups of persons, in public or private institutions; iii. Direct involvement or complicity in the murder, kidnapping, abducting, maiming or attack, whether actual, attempted or threatened on the person, official premises, private accommodation, or means of transport or diplomatic agents or other internationally protected persons; iv. Intentional and unlawful provision or collection of funds, whether attempted or actual, with the intention or knowledge that any part of the funds may be used to carry out any of the terrorist activities as provided for under the Act; v. Direct involvement or complicity in the seizure or detention of, and threat to kill, injure or continue to detain a hostage, whether actual or attempted in order to compel a State, an international inter- governmental organisation, a person or group of persons, to do or abstain from doing any act as an explicit or implicit condition for the release of the hostage; vi. Unlawful seizure of an aircraft or public transport or the hijacking of passengers or group of persons for ransom; vii. Serious interference with or disruption of an electronic system; viii. Unlawful importation, sale, making, manufacture or distribution of any firearms, explosive, ammunition or bomb; ix. Intentional development or production or use of, or complicity in the development or production or use of a biological weapon; x. Unlawful possession of explosives, ammunition, bomb or any materials for making of any of the foregoing. 2.3. Terrorism Financing The Financial Action Taskforce defines terrorism financing as the financing of terrorist acts, and of terrorists and terrorist organisations. The Anti-terrorism Act, 2002 (as amended) describes acts that contribute to terrorism financing as such whereby a person; willingly collects or provides funds, directly or indirectly, by any means, with the intention that such funds will be, or in the knowledge that such funds are to be used, in full or in part, by a person or terrorist organisation, to carry out a terrorist act. 2.4. Proliferation Proliferation refers to the development and use of nuclear, chemical, or biological weapons and their delivery systems - also referred to as Weapons of Mass Destruction (WMD) - by state or non-state actors in violation of international agreements and export control regimes. 2.5. Proliferation of Weapons of Mass Destruction (WMD) In its 2021 Guidance on Proliferation Financing Risk Assessment and Mitigation, the FATF indicates that WMD Proliferation refers to the manufacture, acquisition, possession, development, export, trans-shipment, brokering, transport, transfer, stockpiling, or use of nuclear, chemical, or biological weapons and their means of delivery and related materials (including both Dual-Use technologies and Dual-Use goods used for non-legitimate purposes) 2.6. Proliferation Financing State and non-state actors may access and use the formal financial system, as well as informal methods of value transfer, to raise funds, conduct payments to procure materials and goods needed for proliferation, and engage in other illicit financial activities connected to proliferation efforts. Proliferation financing therefore facilitates the movement and development of proliferation-sensitive goods and WMD programmes and can therefore contribute to global instability and may ultimately result in loss of life and property. According to section 9B of the Anti-Terrorism (Amendment) Act 2022, a person or organisation that: i. Makes available an asset; ii. Provides a financial service; or iii. Conducts a financial transaction; and the person knows that, or is reckless as to whether, the asset, financial service or financial transaction is intended, in whole or in part to facilitate any of the activities specified in the ATA (as amended) 2022 regardless of whether the specified activity occurs or is attempted commits PF. Some of the activities that constitute terrorism financing include-