Uganda’s financial sector launches the Anti-Fraud Consortium (AFC), a landmark initiative that signals a decisive step towards a unified front against the escalating threat of financial fraud across the nation.
The AFC brings together a comprehensive network of players, including Bank of Uganda, Supervised Financial Institutions (SFIs) and their agents, service providers and operators, law enforcement agencies, and legislators with a central aim to foster collaboration, share vital information, and collectively combat financial fraud that impacts the entire financial ecosystem of Uganda.
For the Payments Service Providers Association (PSPA) and its members, the launch of the AFC represents a pivotal moment. As the digital landscape evolves and payment solutions become increasingly sophisticated, so do the tactics of fraudsters.
Mr. Ronald Azairwe, Managing Director of Pegasus Technologies Limited, representing the PSPA, powerfully articulated this reality. “Fraudsters thrive in fragmentation. We are only as strong as our weakest link, and we only stand a chance if we stand together.” He highlighted the previous challenges of operating in silos, where institutions individually endured losses and struggled to rebuild reputation. The AFC offers a crucial platform for PSPA members to break down these barriers, share experiences, and collectively strengthen their defenses.
Dr. Tumubweine Twinemanzi, Executive Director of National Payments Systems at the Bank of Uganda, underscored the critical need for this consortium, stating, “We realised that a fraud incident that happens in one commercial bank often goes on to happen in another, sometimes even orchestrated by the same fraudster. And this happens courtesy of the inability to share information across our financial institutions.”
“The gap and the need for having a unified forum that cuts across the financial and economic sectors is evident,” adds Twinemanzi, emphasizing the profound impact of fraud on trust, the very foundation of the financial sector, and its potential to cripple economic activity.
The shift, like financial crime, from physical robbery to sophisticated cyber-attacks capable of inflicting massive losses swiftly, necessitates this unified approach.
Mr. Ronald Mugisha, Cyber and Fraud Risk Officer at UBA, emphasized that the groundwork for this collaboration began in 2023 with the first Anti-Fraud Forum. This led to the development of banking industry guidelines promoting information sharing and a Code of Conduct for staff. He also pointed out the concerning statistics from the Uganda Police Force Annual Crime Report 2024, which revealed a significant surge in cybercrimes, resulting in losses of UGX72 billion. This underscores the urgency and importance of the AFC’s mission to raise awareness and boost communication.
AFC’s core objectives
- Bring together UBA member institutes, PSPA, regulators, law enforcement, MDAs, and the legislature to share knowledge, information, and resources for a unified fight against fraud.
- Highlight the methodologies of financial fraud for early detection and to flag fraudsters across the entire financial industry.
- Review and refine existing regulatory frameworks, including potential amendments to laws, increased penalties, and addressing capacity gaps within the judiciary.
Ms. Julianne Mweheire, Director, Economic Regulation, Content and Consumer Affairs at the Uganda Communications Commission (UCC), highlighted the Commission’s role in dismantling the enablers of fraud through strategic communication and public awareness campaigns. She emphasized that fraud thrives in the absence of awareness and the hesitation to report incidents.
“The AFC offers a powerful platform for coordinated nationwide awareness programs, knowledge sharing, and advocating for stronger consumer protection policies,” said Mweheire.
Mr. Dennis Kakonge, General Manager Corporate Services & Company Secretary at MTN Mobile Money (U) Limited, echoed the sentiment of vital collaboration in the face of rapidly evolving fraud schemes. He stressed the importance of lawful real-time information sharing, alerting members to emerging threats, and investing in human capital through training and expertise. He also championed public awareness campaigns to build resilience against fraud.
Ms. Chelimo Beata, Deputy Director of the Criminal Investigations Directorate (CID), provided a stark perspective from law enforcement. She highlighted the overwhelming number of cyber fraud cases and the historical lack of resources and training in this area. She called financial institutions and stakeholders to partner with the CID on training initiatives, streamline reporting channels, and provide timely information to support evidence collection.
For the PSPA, the AFC provides a dedicated platform for its members to:
- Facilitate the timely and secure exchange of intelligence on emerging fraud trends, methodologies, and known perpetrators.
- Move away from isolated responses towards a coordinated defense, making the entire financial ecosystem more resilient.
- Work collaboratively with regulators and legislators to develop and implement more effective anti-fraud measures.
- Participate in joint campaigns to educate the public on fraud prevention, thereby protecting their customer base.
- Pool knowledge and resources for training and capacity building within their organizations.
The launch of the Anti-Fraud Consortium marks a significant turning point in Uganda’s fight against financial crime. By fostering unprecedented collaboration and communication, this initiative promises to create a more secure and trustworthy financial environment for all stakeholders, including the vital players within the Payments Service Providers Association.
Source: Payment Systems Providers Association (PSPA)
