Publish Date: Nov 08, 2013

http://www.newvision.co.ug/news/649246-ugandan-banks-cautioned-on-money-laundering.html

Banks in Uganda have been advised to embrace the latest technologies in the fight against money laundering.

Marc Philippo, a director with Temenos gave the counsel after a Swiss based financial solutions provider announced a deal to install T24, a core banking system at Crane bank.

Philippo explained the money laundering fighting features on the system.

“The anti-money laundering switch is designed to monitor transactions coming into the organization. It monitors the size of cash transactions and the name of the individual the transaction against international lists that are updated continuously,” he said.

This system will first be implemented at Crane Bank’s new branch in Rwanda and its Uganda head offices.

Parliament recently passed the Anti-Money Laundering Bill into law. Converting, transferring or transporting money suspected to be proceeds from crime, or assisting another person to benefit from such transactions is criminal.

If found guilty, one is liable to imprisonment for a period not exceeding 15 years or a fine not exceeding sh2b or both punishments.

The new law provides specific measures to detect and deter money laundering and to facilitate the investigation and prosecution of money laundering offences.

With banks looking to extend financial services to rural Uganda and some even to the region, Philippo said the challenge is expanding at an unnecessarily high cost.

“Many banks here are using some of the smaller core banking solutions that have served them well over the years and were suitable in a much less complex world. The old technology in place was never designed in an era where people are trying to access financial services through different devices,” he said.