In an effort to promote transparency and accountability in financial transactions, the government of Uganda has implemented a routine procedure that applies to individuals entering or departing the country with negotiable bearer instruments or cash equal to or exceeding 1500 currency points (where 1 currency point equals UGX20,000). This procedure, which has been in place for a significant period, requires a declaration to be made to the Uganda Revenue Authority (URA) Customs at the border point. It is crucial to note that no tax is levied on the declared money.
This procedure is a standard global practice at border exits that is aimed at combating money laundering and terrorism financing. In Uganda, this procedure is mandated by Section 10 (1) and Regulations 10(1) (a) and (b) of The Anti Money Laundering Act of 2013.
Effectively any money equal to or in excess 1500 currency points will constitute a restricted good requiring the owner to make a declaration to Customs which implies that the owner is supposed to pass through the red channel.
In essence, the Ugandan government’s routine procedure for declaring negotiable bearer instruments or currency equal to or exceeding 1500 currency points is a vital measure for combating money laundering and terrorism financing. The procedure is mandated by law and is a standard global practice that promotes transparency and accountability in financial transactions.
The Declaration Process:
The declaration process has been designed to be efficient and user-friendly for travelers. Departing passengers are required to complete Form C (blue form) while arriving passengers are required to complete Form D (yellow form). They are then expected to submit the completed form to a URA Customs Officer, along with copies of their passport. The officer verifies the declared amount without handling the funds directly, ensuring the non-invasive nature of the process.
The declaration process can be completed within 15-20 minutes, and the traveler is then permitted to proceed with their funds, free from any taxation on the declared amount. Upon submission, Customs forwards the declaration forms to the Financial Intelligence Authority (FIA) for analysis and advisory purposes. Throughout this process, confidentiality is maintained with utmost diligence. If the FIA finds any indication that the funds could be financing criminal activities, it assumes full control of the investigation.
Recently, URA in partnership with FIA sensitized the Entebbe International Airport Customs officials on how the clients’ privacy is upheld throughout the entire process.
These streamlined efforts reflect Uganda’s unwavering commitment to promoting a transparent and equitable economic landscape at border exits, in compliance with international standards.
