Uganda has finally been removed from the list of countries that are weak in laws on anti-money laundering, the Financial Intelligence Authority( FIA) has announced.
“We’re thrilled to announce that Uganda has been removed from the FATF grey list—a significant milestone for our nation’s economy and financial integrity,” FIA said in a statement on Friday afternoon.
Uganda was placed on the grey list in 2020, after the Financial Action Task Force (FATF) declined to adopt the country’s money laundering and terror financing risk assessment report, done by the Ministry of Finance, the Financial Intelligence Authority (FIA) and some NGOs in 2018.
The grey list shows the performance of countries regarding the safety or level of risk of their financial systems.
The consequence of Uganda’s being blacklisted was that transactions originating from Uganda or made through Uganda’s financial system and cash from or to the country, face more scrutiny by the international systems, which leads to delays in concluding business transactions.
Additionally, when a country is blacklisted, countries or other financial jurisdictions may block some transactions if they cannot ascertain the source or destination of the money or prove that it has nothing to do with money laundering.
This move greatly delays business transactions and increases the cost of doing business.
Speaking on Friday, FIA said 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 added that the decision demonstrates Uganda’s 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 & fostering economic growth. It also enhances our reputation on the international stage, making us a more attractive destination for business,”FIA said.
“Removal from the grey list signifies that Uganda’s financial system is now recognized as more robust and resilient. This protects the integrity of our financial institutions and safeguards the interests of ordinary Ugandans, ensuring a more stable financial environment.”
Financial Intelligence Authority said the development has implications that extend beyond the financial sector as it reflects positively on Uganda’s overall governance and commitment to fighting corruption and illicit financial activities.
However, FIA said they will continue to work tirelessly to uphold the highest standards of financial integrity and security in Uganda.
