UGANDA, Kampala | Real Muloodi News | In the quest for transparency and accountability, Uganda has embarked on a mission to reveal the true owners behind commercial companies operating within its borders.
This initiative, spurred by a global wave of transparency, aims to combat financial crimes, tax evasion, and illicit financial flows that have plagued the nation’s economic landscape.
Jolly Mutesi, the Supervisor of International Tax and Transfer Pricing at the Uganda Revenue Authority (URA), emphasizes the need to move beyond the façade of companies as “hypothetical people” and uncover the individuals reaping the benefits of their activities.
The recent push for a Beneficial Ownership (BO) register by the Uganda Registration Services Bureau (URSB) reflects a commitment to this cause.
The URSB’s directive, issued on Jan. 11, mandated all companies and partnerships to submit details of their beneficial owners within 30 days.
As the year concludes, Steven Baryevuga from URSB notes positive responses from companies, although specific compliance figures remain undisclosed.
The BO register, a response to international standards and pressure from bodies like the Financial Action Task Force (FATF), targets the misuse of legal entities for money laundering and terrorism financing.
However, scepticism persists, especially concerning the willingness of powerful figures, including politicians, to disclose their ownership details.
Fred Muhumumuza, a Senior Lecturer of Economics at Makerere University, points out that many individuals, especially in the political sphere, aim to conceal their wealth, creating pseudo companies for various reasons.
The BO register aligns with Uganda’s broader efforts to combat financial crimes and improve its global standing.
Anneke Wolmarans, a specialist commercial advisor, sees it as a tool to expose corruption, reduce investment risk, and enhance national and global governance.
The move also addresses challenges associated with shell companies, anonymous entities, and front businesses used for money laundering and tax evasion.
In the context of Uganda’s extractive industries, the BO register holds particular significance.
Edwin Kanakulya Kavuma, the compliance officer at the Uganda Extractive Industries Transparency Initiative (UGEITI), notes that beneficial ownership data will aid in good governance, ensuring that only legitimate companies receive licenses in sectors like mining.
The push for transparency is not without its challenges. Some experts, like Dr. Muhumuza, doubt the effectiveness of the BO register, considering the political landscape and the reluctance to disclose information.
The accuracy of data entry into the register poses a challenge, and concerns about the government’s commitment to implementing the initiative persist.
URA’s Jolly Mutesi acknowledges the challenge but emphasizes the register’s potential impact in curbing systemic corruption and exposing hidden assets.
The exchange of information between jurisdictions becomes crucial in this effort. The BO register, if implemented correctly, could serve as a powerful tool against tax evasion, money laundering, and corruption, aligning Uganda with global expectations.
As Uganda navigates this path toward transparency, questions remain about the register’s effectiveness in the face of political and economic complexities.
It requires not only commitment from government agencies but also international cooperation and public awareness.
The journey to unveil the true owners of commercial companies is fraught with challenges, but it represents a crucial step toward a more accountable and transparent business environment in Uganda.
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