Anti-money laundering law and policy as a double edged sword
| DOI | https://doi.org/10.1108/JMLC-11-2019-0093 |
| Date | 25 March 2020 |
| Pages | 899-912 |
| Published date | 25 March 2020 |
| Author | Norman Mugarura |
| Subject Matter | Accounting & Finance,Financial risk/company failure,Financial compliance/regulation,Financial crime |
Anti-money laundering law and
policy as a double edged sword
Norman Mugarura
Faculty of Law, Bishop Stuart University, Mbarara, Uganda
Abstract
Purpose –Regulators have a duty to enforce anti-money laundering (AML) and countering financing of
terrorism regulation. However, in doing so, they should not to be overzealous especially in carrying out
investigations into suspicious money laundering transactions. This does not mean that oversight agencies
should not carry out the requiredinvestigations with due diligence. This study aims to proposethat banks
cannot be allowed to operate in a lawless environment; however, there is a need ensure that businesses are
able to operatewith minimal regulatory interference.
Design/methodology/approach –Data was collected from primary and secondary sources such as
Uganda’s Anti-Money laundering Act 2013 (amended 2017), Patriot Act 2001, Proceeds of Crime Act 2000
International legal instruments, case law, books, websites, journal papers, policy documents and scholarly
debates and evaluated to fosterthe objectives of the paper accordingly. The paper has also been enriched by
empirical experiences of countries in Europe, Africa and within countries on money-laundering regulation
and its intricacies. There was a wealth of online data sources and in print, which were reviewed and
internalisedto foster the objectives for writing thebook.
Findings –Regulation of businessesagainst money laundering and financing of terrorism imposesa heavy
cost burden on poorer countries and should be funded by developed economiesfor some countries to easily
operate desired International AML standards. It also needs to be noted that banks cannot be allowed to
operate in a lawless business environment, which makes money laundering an international and national
securityissue.
Originality/value –The thesis of this paper was drawn from the author’s presentation to security
agencies in Kampala in August2019. In his presentation, the author opined that investigations into money-
laundering offences should be triggered when a financial institution forms suspicions of potential money-
laundering offences to have been committed. Some of the questions he sought to answer during the
presentation was whethersharing information on “accountable persons or the regulated sector”inUganda’s
AML 2013 with newspapers before investigations are concluded does not amount to tipping off presumed
money-launderingculprits? How should investigationsbe conducted?
Keywords Policy, Anti-money laundering law
Paper type Research paper
1. Introduction
The thesis of this paper was drawn from the author’s presentation to security agencies in
Kampala in August 2019[1]. In his presentation, the author opined that investigations into
money-laundering offences should be triggered when a financial institution forms
suspicions of potential money-laundering offences to have been committed[2]. Some of the
questions he sought to answer during the presentationwas whether sharing information on
“accountable persons or the regulated sector”in Uganda’s AML 2013 with newspapers
before investigations are concluded does not amount to tipping off presumed
money-laundering culprits? How should investigations be conducted? The foregoing
questions call upon oversight agencies not to be overzealous when conducting
investigations into suspicious money-laundering transactions but to ensure caution and
Anti-money
laundering law
and policy
899
Journalof Money Laundering
Control
Vol.23 No. 4, 2020
pp. 899-912
© Emerald Publishing Limited
1368-5201
DOI 10.1108/JMLC-11-2019-0093
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