The Financial Intelligence Authority (FIA), Uganda’s key agency for combating money laundering and the financing of terrorism, has unveiled a comprehensive strategy designed to keep the country off the Financial Action Task Force (FATF) grey list.

This initiative comes after Uganda successfully addressed various deficiencies in its anti-money laundering (AML) and counter-terrorism financing (CTF) frameworks, which led to its removal from the grey list earlier this year.

In February 2020, Uganda was placed on the FATF grey list, a designation that subjects countries to increased monitoring due to identified weaknesses in their financial systems.

The inclusion on this list triggered enhanced due diligence by international financial institutions, raising the cost of cross-border transactions and making it more difficult for Ugandan businesses and nationals to access foreign credit.

Recognizing the severe implications of being on the grey list, the Ugandan government, in collaboration with the FIA, took swift action to address the shortcomings.

According to Bright Besigye, Manager of International Relations at FIA, Uganda was first evaluated by FATF in 2016, revealing significant gaps in the country’s AML and CTF systems. Following this assessment, Uganda was placed under observation until 2019.

During this period, the country made notable progress, including amending the Terrorism Act to criminalize the financing of terrorism, increasing the training of law enforcement agencies, boosting staffing at the FIA, and securing a larger budget to support these efforts.

Despite these advancements, Uganda’s implementation of FATF standards was still considered insufficient, resulting in the country being grey-listed in 2020. However, by February 2023, after intense efforts to improve its AML and CTF frameworks, Uganda was removed from the grey list, marking a significant milestone for the country.

To ensure Uganda remains off the grey list, the FIA has developed the “Post Grey List Exit Strategy.” This strategy, crafted in collaboration with the Ministry of Finance, focuses on raising awareness about money laundering and terrorism financing across all relevant sectors.

The goal is to equip stakeholders—including those involved in the prevention, detection, investigation, prosecution, and recovery of illicit assets—with the necessary tools and knowledge to effectively combat financial crimes.

A key component of the strategy is the establishment of a National Money Laundering Safety Task Force under the Ministry of Finance, aimed at enhancing coordination and response to financial crimes.

The ministry is also working on a new successor strategy to the current FIA Strategic Plan, which is set to expire in 2025. This new plan will incorporate updated measures to address emerging money laundering threats and further strengthen the country’s defences.

FIA is also focusing on capacity-building initiatives, including training and stakeholder engagement, to empower other institutions like the Uganda Police, the Ministry of Internal Affairs, the judiciary, and the Bank of Uganda.

By fostering a collaborative, all-government approach, the FIA aims to ensure that combating money laundering and terrorism financing is not solely the responsibility of the FIA but is shared across multiple agencies.

Looking ahead, Uganda is scheduled for another mutual evaluation by FATF in 2028. The FIA is confident that the implementation of its Post Grey List Exit Strategy will position Uganda to meet and exceed the necessary standards, thereby avoiding any future greylisting.

“Our objective is to ensure that by 2028, we have fully implemented the strategy and met all FATF requirements,” Besigye emphasized. “We are committed to evolving alongside the changing nature of financial crimes and maintaining a proactive approach in safeguarding our financial system.”