What it means for Uganda to be removed from the financial Grey List

This was at the 5th FATF plenary taking place in Paris, France under the two-year Singapore Presidency of T.Raja Kumar.

The Financial Action Task Force (FATF), a global body mandated to lead action to counter threats of abuse of the financial system by criminals and terrorists has February 23,2024 removed Uganda from the Grey list.

This was at the 5th FATF plenary taking place in Paris, France under the two-year Singapore Presidency of T.Raja Kumar.

According to Minister of State for General Duties Henry Musasizi, this follows a recent onsite assessment to verify the reforms for anti-money laundering and countering the financing of terrorism put in place by Uganda.

“Working with FATF, Uganda successfully completed the reforms for combating money laundering, countering terrorism financing and proliferation financing in line with international standards,” he said.

Financial Intelligence Authority (FIA) Executive Director Samuel Were Wandera noted that this removal is a testimony to the hard work by all stakeholders.

“Uganda’s AML/CFT landscape has evolved over the years with a number of reforms. As we celebrate this achievement, let’s not rest on our laurels. The FIA remains committed to continuous improvement and vigilance. We will continue to work tirelessly to uphold the highest standards of financial integrity and security in Uganda,” he said.

According to the FAFT website, In February 2020, Uganda made a high-level political commitment to work with the FATF and ESAAMLG to strengthen the effectiveness of its AML/CFT regime.

At its October 2023 plenary, the FATF made the initial determination that Uganda has substantially completed its action plan and warrants an on-site assessment to verify that the implementation of AML/CFT reforms has begun and is being sustained, and that the necessary political commitment remains in place to sustain implementation in the future.

The website sates that Uganda made the following key reforms, including: (1) adopting a national AML/CFT strategy; (2) enhancing the use of MLA and maintaining statistics; (3) developing and implementing risk-based supervision of the financial and DNFBP sectors; (4) assessing the ML/TF risks related to legal persons and ensuring that competent authorities have timely access to accurate basic and beneficial ownership information; (5) pursuing ML investigations and prosecutions, applying ML charges consistent with the country’s risk profile and establishing procedures to trace and seize proceeds of crimes; (6) demonstrating an ability to conduct TF investigation and prosecution; (7) implementing PF-related TFS and developing an outreach and risk-based oversight plan to protect NPOs from TF abuse.

What it means for Uganda

Being removed from the FATF grey list is a testament to Uganda’s commitment to strengthening its anti-money laundering and counter-terrorism financing framework. It demonstrates our dedication to upholding global standards and combating financial crime.

This achievement opens up a world of opportunities for our economy. It boosts investor confidence, encouraging foreign investment and fostering economic growth. It also enhances our reputation on the international stage, making us a more attractive destination for business.

Removal from the grey list signifies that Uganda’s financial system is now recognized as more robust & resilient. This protects the integrity of our financial institutions and safeguards the interests of ordinary Ugandans, ensuring a more stable financial environment.

The implications of this milestone extend beyond the financial sector. It reflects positively on Uganda’s overall governance and commitment to fighting corruption and illicit financial activities. It reinforces our position as a responsible member of the global community.

Leave a Reply

Your email address will not be published.

Related Articles

Back to top button