Human Rights Defenders Initiative, an organisation that promotes human rights has expressed concern over the manner in which state agencies are handling Non-Government Organisations more so with the freezing of their accounts.
This in a dialogue with the Financial Regulatory Authority, with focus on how to better implement the Anti- money laundering and Counter –Terrorism Financing laws.
According to Yona Wanjala, the Executive Director, Defenders Protection Initiative, as countries aim at regulating the CSOs sector in accordance to anti-money laundering, some of the laws are over regulating the sector and thus shrinking the civic space.
"One of the drivers of terrorism, is money laundering and if we follow the money, we can be able to mitigate the effects." Wanjala said.
The executive Director Action Aid, Xavier Ejoyi noted that they do see selective and arbitrary implementation of existing legislation and hostility from state institutions.
"Is it rule of law or rule by law, because we have observed legislation leaning towards restrictions rather than promoting civic rights?"Ejoyi added.
World Over, nations have moved to contain or swat terrorist threats through tracking money transfers and Uganda is no exception a fact that some participants agreed to.
"If we look at money laundering and the threat of terrorism, there is a real risk. This country loses significant resources to illicit movement of funds. Uganda has been on the receiving end of terrorism." Ejoyi noted.
In 2020, the Financial Intelligence Authority asked the Director of Public Prosecutions (DPP) to investigate the suspected involvement of two Non-Governmental Organizations in financing terrorism.
According to the Financial Intelligence Authority, the action against the Uganda National NGO Forum and the Uganda Women’s Network came following intelligence information submitted to it from one of the national security agencies. The DPP's office says the matter has been forwarded to the Police Criminal Investigations Department.
Those actions have cast shade on the working relationship between the agency and the organisations with analysts accusing it of witch hunt.
However, the Head of the Financial Intelligence Authority, Sidney Asubo refuted those reports insisting that the agency is acting within the law.
"There is a misconception that we are trigger happy to freeze and halt accounts and this is simply not true. Under the AML Act, we have the power to halt transactions. There is no time frame indicated in the act for how long this halt should be." Asubo said.
Yona Wanjala, the Executive Director, Defenders Protection Initiative appealed to organisations to participate and cooperate with the different enforcement agencies to ensure transparency and a change in perception of Civil Society Organisations.