Money laundering cases still on the rise
Though government is the final stages of passing the anti- money laundry bill which is believed will reduce the high cases of money laundry in different sectors, the insurance players age opposing its passing citing a number of loopholes which must be addressed before the bill is passed one of is the identification which in the case Uganda still a problem in Uganda.
Money laundering is one of big issue eating up the countries and the globe at large; it is estimate that between two to five percent of global gross domestic product or 800 million dollars to 2 trillion dollars is laundered every year. This huge amount of money ends up in financing some of the major terrorist groups in the world. This money is diverted on different bank accounts which monies accumulate day by day without tracing the source.
Uganda in the year 2010 passed the anti money laundry bill and it is only the President's signature waited to enact it as law, though the advantages in it some of the players like the insurance stake holders are criticizing the law citing the loopholes in the economy which don't not favor the victims like them
The lack of identification within the economy is one of the big problems which the players say some of the clients cannot be followed as the bill stipulates in one of its provision.
The insurance sector is one of the victims in the money laundering though low compared to the financial institutions like the banking sectors. In Uganda insurance sector contributed 2 % for the gross domestic product of the economy, but some of the experts in insurance say the insurance sector to contribute significantly to the GDP it has to embrace some of polices which are used by some of the cone men of the globe's economies.
The insurance regulatory authority says this is the time to take advantages of the bill to help the sector streamline its objectives in the country.
According to the bill Persons who convert, transfer or transport property suspected to be proceeds from crime, or assist another person to benefit from such transactions are liable to imprisonment for a period not exceeding 15 years or a fine not exceeding sh2b or both punishments.