UGANDA

UGANDA
competition, financial inclusion and consumer protection. However, to ensure the smooth
operation of the mobile money services and to protect the integrity and stability of the financial
system, Ministry of Finance and BoU are working together to develop a more comprehensive
legal, regulatory and supervisory framework for mobile money activities (structural benchmark).
46. Government is committed to ensuring the prompt exit of Uganda from the Financial
Action Task Force (FATF) Grey list. We have accomplished significant progress, including passing
further amendments to the Anti-Terrorism (Amendment) Act by Parliament; and the gazetting of
the Anti-Terrorist Regulations and of the AML Regulations. Looking forward, we will accelerate the
adoption of the remaining measures to ensure prompt exit from the FATF Grey list, including the
approval by Parliament of the amendments to the AML and Anti-Terrorism Acts (structural
benchmark by December 2016). We will also aim to have the mutual evaluation report widely
publicized; complete the national risk assessment and have its report adopted by cabinet and
subsequently published on the Financial Intelligence Authorities’ website; prepare a five-year
Strategic Plan and communications strategy for the Financial Intelligence Authority and initiate
the update and preparation of the national AML/CFT policy.
STRUCTURAL REFORMS
47. To prevent reoccurrence of arrears, we plan to include the non-accumulation of arrears
as a key criterion for reappointing accounting officers. In addition, accounting officers have been
asked to migrate all electricity and telephone utilities from the post-paid to the prepaid systems
by 30th June 2017.Thereafter, no funds will be released to non-compliant Ministries and Agencies,
while accounting officers who create arrears will face disciplinary action, including termination of
their appointments. We would like to request IMF TA to further strengthen our processes and
prevent the reoccurrence of arrears. In terms of our reporting requirements, we will continue to
publish semi-annual reports on unpaid bills (end-December) and arrears (end-June) for the
agreed ministries and government departments (structural benchmarks), and we have provided
reports signed by the PS/ST on the stock of outstanding arrears at end-June 2014, end-June 2015,
and end-June 2016 (preliminary), reconciled between the Accountant General and the Internal
Audit Department of the Ministry of Finance, Planning, and Economic Development.
48. We will continue our efforts to further strengthen the implementation of infrastructure
projects. We have finalized the Appraisal User Manual and Development Committee Guidelines to
ensure that no project is included in the Public Investment Plan (PIP) unless a feasibility study has
been done and counterpart funding is provided for in the medium term budget framework. The
manual details a step-by-step guide to the MDAs in the preparation and appraisal of projects. We
are setting up an Integrated Bank of projects that will act as a central depository for all public
projects in Uganda and enable tracking of the development process of projects on a real time
basis and will also establish a project Development Facilitation Fund to allow a number of priority
projects to undergo feasibility and/or pre-appraisal studies while awaiting inclusion in the PIP and
annual budget by March 2017. On the basis of diagnostic study on strengthening public
investment management, we are finalizing a project preparation manual, which will set out
national parameters, shadow prices and conversion factors to be used in all economic project
40 INTERNATIONAL MONETARY FUND