Bankers launch anti-fraud consortium

The Uganda Bankers Association (UBA) has launched the Anti-Fraud Consortium to combat financial cyber crimes.   The consortium brings together regulators, supervised financial institutions, payment providers, law enforcement, and the public to anticipate, detect, prevent and respond to financial fraud with clarity and consistency.

Twinemanzi Tumubweine, Bank of Uganda Executive Director of National Payment Systems, and Chairman of the Financial Sector Anti-Fraud Consortium, said that the consortium aims to strengthen regulation against fraud and increase public trust in the financial sector.

Tumubweine also noted that the consortium is proposing a total ban on individuals convicted of fraud-related offences from accessing any financial services or holding any telecom number for a stipulated period.

Ronald Azairwe, the Chief Executive Officer of Pegasus Technologies, said that the consortium will embark on training the Judiciary and the CID to enhance their capability to handle cybercrimes effectively.

According to Azairwe, the current cybercrime laws are not punitive enough to apprehend criminals. He added that the consortium also intends to influence legislation by involving Members of Parliament to introduce more stringent punitive measures.

Jane Frances Abodo, the Director of Public Prosecution, said that the initiative marks a critical step in the collective effort to curb financial crime, which threatens the integrity of the country.

“Financial fraud has evolved into a sophisticated criminal enterprise that knows no borders. But for us, who are trying to fight them, we are working in silos,” Abodo remarked.

The DPP revealed that it’s estimated Uganda loses between 2.4 and 24.9 billion shillings annually due to bank fraud, warning that if nothing is done, Uganda’s growing digital economy will remain at risk.

Abodo pledged to work with the Anti-Fraud Consortium to streamline evidence sharing and expedite prosecution.

Chelimo Beata, the Deputy Director at CID, said that they are challenged by a lack of training, as very little effort had previously been put into the management of cybercrime.

She also said that few police officers can deal with fraud, while fraudsters are highly educated, well-equipped, and highly connected.

Wilbrod Owor, the Chief Executive Director Uganda Bankers Association, urged financial institutions to have strong and effective anti-fraud mechanisms and also share information about fraud cases.

According to the Police Annual Crime Report 2024, cybercrimes led to the loss of 72 billion Shillings, with 474 cases reported.

Comments

comments