The Central Bank of the United Arab Emirates (UAE) has directed all financial institutions in the country not to deal with Ugandan Speaker of Parliament Anita Among and two former ministers who were recently sanctioned by the United Kingdom over corruption.
The UAE central bank also directed that properties of the trio, if any, should be frozen until further notice.
“All licensed financial institutions must screen databases and transactions against the lists of sanctioned persons,” the Emirates Central Bank said in a statement.
“When a “confirmed” or a “potential” match is found through the screening process, the institution must immediately, without delay and without prior notice, freeze or suspend all funds or transactions,” it added.
This comes after the UK on April 30 imposed asset freezes and travel bans on Among and two former Karamoja Affairs ministers, Mary Goretti Kitutu and Agnes Nandutu in connection with the Karamoja iron sheets scandal.
The UAE financial institutions are also required to report “confirmed” or “potential” matches and the actions taken within five business days.
The UAE decision offers a glimpse of the impact of sanctions on individuals.
Analysts warn that more international organisations may distance themselves from dealing with the sanctioned individuals, hindering their ability to represent Uganda on the global stage. This could damage Uganda’s international relations. Additionally, Uganda’s broader economy might suffer as international investors become wary, fearing instability.
Sanctions-induced economic pain and shrinking resources could also decrease a target leader’s ability to provide selective inducement to their support base in return for their loyalty.
