Uganda Exits FATF Grey List, Showcasing Dedication to Financial Transparency

Uganda has been delisted from the Financial Action Task Force (FATF) Grey List, marking a significant milestone in the country's dedication to enhancing financial transparency and combating money laundering and terrorism financing. 

According to the Financial Intelligence Authority (FIA), the decision to delist Uganda from the FATF Grey List was announced by FATF President T. Raja Kumar while presenting the outcomes of the fifth plenary meeting which took place in Paris, France on February 21 - 23.

The FATF, an Intergovernmental organization that sets global standards for combating illicit finance, placed Uganda on its Increased monitoring list commonly known as the Grey List, in February 2020 due to strategic deficiencies in Anti-Money Laundering and Countering Financing Terrorism (AML/CFT) measures.

Since then, Uganda has implemented a series of rigorous reforms and demonstrated substantial progress in aligning its AML/CFT framework with International standards. 

The reforms include adopting a national AML/CFT, CPF(Countering of Proliferation Financing) Strategy, enhancing the use of Mutual Legal Assistance and maintaining comprehensive statistics; developing and implementing risk-based supervision of the financial and Designated Non-Financial Business and Professionals (DNFBP) sectors, ensuring that law enforcement agencies and judicial authorities apply the ML offense consistent with the identified risks as well as establishing procedures to trace and seize proceeds of crime.

Other reforms undertaken by Uganda are enhancing of the ability of the law enforcement agencies to conduct terrorism financing investigations and prosecutions, implementing proliferation financing-related targeted financial sanctions, strengthening the capacity of relevant AML/CFT Ministries Departments and Agencies (MDAs) to implement the said reforms effectively and sustainably in the future.

Following the announcement, Samuel Were Wandera, the executive director of the Financial Intelligence Authority (FIA) Uganda, emphasized the importance of this achievement, stating: "Uganda's exit from the FATF Grey List is a testament to our unwavering commitment to fostering a transparent and secure financial environment. It reflects the concerted efforts of our Government and Regulatory Authorities to strengthen our AML/CFT framework and safeguard our financial system from illicit financial activities," he said.

According to Wandera, the Uganda Government has since February 2020 when the country was placed on the grey list, made a high-level political commitment to work with FATF and the Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG).

“The government of Uganda has been actively working to strengthen the effectiveness of its Anti-Money Laundering/Countering Financing of Terrorism (AML/CFT) regime to implement the action plan agreed to, with the FATF which comprised of 22 Action items,” he said.

The FIA Executive Director has assured the FATF delegates, Ugandans, and the International community of Uganda’s commitment to consolidate the highlighted achievements attained during the period and to further strengthen the AML/CFT/CPF regime.

He maintains that this commitment shall be achieved through strengthening the National Task Force to effectively coordinate an all-Government approach to the crimes, increased engagements with the private sector to aggressively embrace the various AML/CFT/CPF measures including dealing with the identified risks, as well as strengthening the capacity of the institutions involved in the fight against ML/TF crimes.

Uganda's successful exit from the FATF Grey List not only reinforces the country's reputation as a responsible member of the global financial community but enhances its attractiveness to investors and facilitates greater access to International Financial Markets.

The Financial Intelligence Authority expresses gratitude to the FATF for its constructive engagement and guidance throughout this process. Uganda remains committed to sustaining momentum in its efforts to strengthen its AML/CFT framework further and contribute to Global efforts to combat financial crime.