Uganda Successfully Removed from FATF Grey List

In a significant development, Uganda has been removed from the Grey List of the Financial Action Task Force (FATF), marking a crucial step in averting potential blacklisting that could have adversely impacted the country’s financial industry.

The FATF Grey List serves as a cautionary measure, signaling to other countries and the international community to exercise caution in financial transactions with the listed country. Failure to address concerns raised while on the Grey List can lead to blacklisting, warning against engaging in financial activities with the country due to potential involvement in money laundering and terrorism financing.

The removal from the Grey List is recognized as “a significant milestone in the country’s dedication to enhancing financial transparency and combating money laundering and terrorist financing,” as stated by the Financial Intelligence Authority (FIA) of Uganda.

Uganda faced increased scrutiny in international transactions and business dealings since being placed on the Grey List in February 2020. Concerns about the country’s ability to prevent money laundering and terrorist financing activities resulted in delays, financial disruptions, and a negative impact on investor confidence.

To address these challenges, Uganda initiated a series of rigorous reforms, demonstrating its commitment to aligning its financial regulations with international standards. Key Anti-Money Laundering and Countering-Terrorism Financing (AML/CFT) reforms were implemented to enhance the robustness of Uganda’s systems against money laundering and terrorism financing.

The reforms included adopting a national AML/CFT, Countering Proliferation Financing (CPF) Strategy; improving the use of Mutual/Legal Assistance and maintaining comprehensive statistics; strengthening the capacity of law enforcement agencies for terrorism financing investigations; implementing risk-based supervision of financial sectors; and establishing procedures to trace and seize proceeds of crime.

The decision to delist Uganda from the Grey List was communicated by FATF President T. Raja Kumar during the fifth plenary meeting held in Paris, France. The successful exit from the FATF Grey List reflects Uganda’s unwavering commitment to fostering a transparent and secure financial environment.

Samuel Were Wandera, the FIA Executive Director, expressed confidence in Uganda’s continuous efforts to consolidate achievements and further strengthen the AML/CFT/CPF regime. The successful removal from the FATF Grey List not only reaffirms Uganda’s standing as a responsible member of the global financial community but also enhances its appeal to investors and facilitates greater access to international financial markets.