The Independent Uganda: You get the Truth we Pay the Price
Initial listing in 2020 followed accusations of an inadequate commitment to tackling money laundering activities and terrorist financing
Kampala, Uganda | THE INDEPENDENT | Uganda has been officially delisted from the Financial Action Task Force’s (FATF) “grey list,” a catalog of jurisdictions under scrutiny for inadequate measures against money laundering and terrorist financing.
This development comes more than four years after the country was initiall included in the list in February 2020, attributed to identified shortcomings in its Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) frameworks.
On Feb.23, the Paris-based watchdog said the Fourth-largest economy in East Africa would no longer be subject to its “increased monitoring process.”
Barbados, Gibraltar and United Aran Emirates are also no longer on the grey list, while Kenya and Namibia are new additions. Kenya and Namibia now joins Tanzania, South Sudan, South Africa, Nigeria, Burkina Faso, Mali, Mozambique and Senegal.
“The FATF plenary congratulated Barbados, Gibraltar, Uganda and the United Arab Emirates for their significant progress in addressing the strategic AML/CFT deficiencies previously identified during their mutual evaluations,” the FATF said.
“These jurisdictions had committed to implement an action plan to swiftly resolve the identified strategic deficiencies within agreed time frames.”
Being listed by the FATF can complicate a country’s ability to secure international financing, with a 2021 report from the International Monetary Fund highlighting a “statistically significant reduction in capital flows” for countries on the grey list.
In response to this latest development, Samuel Wandera, the Executive Director at the Financial Intelligence Authority in Uganda, said “Uganda remains committed to sustaining momentum in its efforts to enhance its AML and CFT framework further and to contribute to the global fight against financial crime.”
Uganda’s initial listing in 2020 followed accusations of an inadequate commitment to tackling money laundering activities and terrorist financing.
Last August, the International Monetary Fund underscored the necessity for the Bank of Uganda to intensify its anti-money laundering initiatives for the country to be considered for delisting.
Since then, various measures have been put in place including financial transactions subjected to increased scrutiny, with banks requiring more comprehensive documentation or justifications for cash receipts.
