Legal Framework on Money Laundering
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Date
2024-11
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Kampala International University
Abstract
This research study aimed at examining the institutional frameworks that Uganda and Somalia established for implementing and enforcing their respective anti-money laundering (AML) laws. It was guided by the following objectives to establish the legal framework of money laundering, to evaluate the institutional and policy mechanisms used to detect and control money laundering and to examine the strength and weaknesses of institutional and policy mechanisms used to detect and control money laundering in both Uganda and Somalia. This study used a qualitative comparative legal analysis to examine and compare key aspects of Uganda and Somalia's anti-money laundering (AML) frameworks. A qualitative approach is well-suited to provide an in-depth examination of the legal structures and how they are applied in practice. As well, document analysis was used to extract and systematically compare relevant provisions across Uganda and Somalia's AML legal frameworks. These included definitions of money laundering offenses, compliance and reporting requirements, investigatory powers, and sanctions. The analysis revealed that while both countries have taken significant strides in formulating legal structures to combat money laundering, there remain critical differences in their approaches and the efficacy of their laws. The study found that, despite the presence of a comprehensive legal structure, there are gaps that some criminal enterprises can exploit, such as inconsistencies in legal interpretations and the slow pace of judicial processes. The study found that the absence of a robust legal framework poses significant challenges in combating money laundering. The study found that while international collaboration has been instrumental in laying the groundwork for anti-money laundering efforts, the absence of a cohesive policy framework undermines these efforts. The study concluded that while Uganda has made considerable progress in institutionalizing AML efforts, challenges such as corruption, inadequate training, and resource constraints impede full implementation and enforcement. The study highlights the critical need for a concerted international effort to support Somalia in building institutions capable of enforcing AML laws. This support should focus on developing the necessary infrastructure, providing technical assistance, and facilitating knowledge transfer to build local capacity.