HABARI DAILY I Kampala, Uganda ITighter controls on foreign-linked transactions could push financial flows into informal and unregulated channels, the boss of the Financial Intelligence Authority (FIA) has warned.
The Protection of Sovereignty Bill, 2026 (Bill No. 13 of 2026) was gazetted on 13th April 2026 and tabled in Parliament for the first time on 15th April 2026.
It has been referred to the Parliamentary Committee on Defence and Internal Affairs and the Legal and Parliamentary Affairs Committee for scrutiny before it proceeds to Second Reading.
Samuel Were Wandera, the FIA Executive Director pointed out that there is a real risk of increased use of alternative value transfer systems such as hawalaand virtual assets.
“Such shifts would obscure transaction visibility for law enforcement agencies and weaken oversight mechanisms designed to combat illicit financial flows,” he told Habari Daily in an interview.
He also warned of the potential decline in diaspora remittances, noting that uncertainty and restrictive measures could discourage Ugandans abroad from sending money home.
Wandera further warned that financial institutions may respond to the Bill by adopting a risk-averse stance.
“This could result in individuals or organisations perceived as high-risk being denied access to financial services, effectively driving them out of the formal financial system,” he noted.
He additionally raised concerns about institutional overlap, warning that the Bill could create mandate conflicts among government agencies already tasked with regulating financial intelligence and cross-border transactions.
If enacted in its present form, the Bill imposes criminal liability, mandatory registration, and sweeping foreign-funding restrictions on a vast range of organisations and individuals operating in Uganda across the NGO, private sector, media, academic, diplomatic, and faith-based sectors.
The penalties include imprisonment of up to 20 years and fines of up to Shs 4 billion.
The Bill, promoted by the Ministry of Internal Affairs, seeks to protect Uganda’s sovereignty from foreign interference.
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