Financial sector anti-fraud consortium launched to boost public trust
What you need to know:
- The AFC aims to strengthen regulations against fraud, enhance collaboration among financial institutions, and increase public trust in the financial sector.
The Uganda Bankers Association (UBA) has expressed optimism that the launch of the Financial Sector Anti-Fraud Consortium (AFC) will lead to a reduction in financial frauds and their negative impacts on Uganda's financial system.
The AFC aims to strengthen regulations against fraud, enhance collaboration among financial institutions, and increase public trust in the financial sector.
"There is going to be stronger, enforceable, legal and regulatory frameworks, making fraud more difficult to commit and easier to prosecute," said Ronald Mugisha, Senior Cyber & Fraud Risk Officer at UBA. "There is going to be increased public trust, greater financial inclusion, and economic growth."
Mugisha highlighted the need to amend key laws, including the Computer Misuse Act, Anti-Corruption Act, and Penal Code Acts, to enhance penalties and provide for additional asset-tracing offenses. He also emphasized the importance of blacklisting convicts of financial fraud and barring them from participating in the financial sector for a period of 5-10 years.
The AFC also plans to enact the Bank & Payment Services Fraud Act to address complex frauds targeting financial institutions and infrastructure. Mugisha noted that fraudsters have evolved into organized crime, operating across borders and using agile methodologies.
According to the Uganda Police Force Annual Crime Report 2024, cybercrimes led to a loss of Shs72.125 billion, with 474 cases reported, including 67 ongoing court cases.
Wilbrod Humphreys Owor, Executive Director of UBA, emphasised the need for financial institutions to have strong anti-fraud mechanisms in place and to share information about fraud incidents.
"We need to make cases about fraud very painful to the fraudsters, and they should not get employed in any bank for a very long period," he said.
Senior Commissioner Police and Deputy Director of CID, Chelimo Beata, requested banks to share information about fraud incidents to aid proper investigation. She also highlighted the need for more officers trained in ICT cybersecurity to manage cybercrime effectively.
"We have very few officers who have the capacity to manage cybercrime. We need very highly trained people in ICT cybersecurity," she said.
