Uganda is making significant strides towards being removed from the grey list of countries with deficiencies in anti-money laundering (AML) and counter-terrorism financing (CFT) laws. The Financial Action Task Force (FATF), a global organization addressing these issues, has reported that Uganda has successfully adhered to international standards, completing necessary reforms.

The FATF’s October 2023 plenary concluded that Uganda has substantially fulfilled its action plan, leading to the consideration of an on-site assessment to verify the initiation and sustainability of AML/CFT reforms. The report emphasized the importance of political commitment for future implementation.

This positive development comes after the FATF had issued a warning, threatening to blacklist Uganda unless it aligned its laws with global standards. A grey-listed country signifies weaknesses in detecting and preventing money laundering and terrorism financing, posing risks to the global financial system.

Mr. Samuel Were Wandera, the executive director of the Financial Intelligence Authority (FIA), mentioned that they are awaiting an on-site assessment by FATF experts to validate the recommendations in the initial report. If satisfied, Uganda could be removed from the grey list during the FATF’s February 2024 meeting. The grey listing has previously impacted Uganda’s foreign direct investment and led to delays in fund transfers due to concerns about financial crimes.

Outgoing FIA executive director Mr. Sydney Asubo, who also serves as an adviser to the Uganda Anti-Money Laundering National Task Force, highlighted the extensive efforts over the past three years to address the 22 action items agreed with FATF. Uganda aims to showcase the sustainability of these reforms during the on-site visit, signaling its commitment to effectively combat financial crimes.

Being on the grey list can result in reputational damage for countries, impacting their global standing in terms of efforts to combat corruption, money laundering, and terrorism financing. The Financial Intelligence Authority, established in 2014, plays a crucial role as a government agency tasked with monitoring, investigating, and preventing money laundering in Uganda.