EUROPEAN UNION REMOVES UGANDA FROM ITS AML BLACKLIST
The European Union (EU) has removed Uganda from its Anti- Money Laundering (AML) Blacklist following the delisting of the country from the grey list by the Financial Action Task Force (FATF) in February this year, during a plenary in Paris, France.
The EU’s decision to delete Uganda from its AML blacklist was set in its regulation published on Thursday March 14,2024, which is binding and applicable in its member states.
The EU said in its publication that Commission Delegated Regulation (EU) 2016/1675 identifies high-risk third countries with strategic deficiencies.
Considering the high level of integration of the international financial system, the close connection of market operators, the high volume of cross-border transactions to and from the Union, as well as the degree of market openness, any Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) threat posed to the international financial system is also a threat to the financial system of the Union, the EU statement indicates.
The EU said it reviewed the progress of Barbados, Gibraltar, Panama, Uganda, and the United Arab Emirates in addressing their strategic deficiencies. Those jurisdictions are identified as high-risk third-country jurisdictions in Delegated Regulation (EU) 2016/1675 but were deleted from the FATF list of ‘Jurisdictions under Increased Monitoring’ in October 2023 (Panama) and February 2024 (Barbados, Gibraltar, Uganda and the United Arab Emirates).
The EU explained that the FATF welcomed the significant progress made by Barbados, Gibraltar, Panama, Uganda, and the United Arab Emirates in improving their AML/CFT regimes and noted that those jurisdictions have established legal and regulatory frameworks to meet the commitments in their respective action plans on the strategic deficiencies identified by the FATF.
“Barbados, Gibraltar, Panama, Uganda and the United Arab Emirates are, therefore, no longer subject to the FATF’s monitoring process under its ongoing global AML/CFT compliance process and will continue to work with their FSRBs to further strengthen their AML/CFT regimes,” the EU said.
According to the statement ,Barbados, Gibraltar, Panama, Uganda, and the United Arab Emirates have strengthened the effectiveness of their AML/CFT regimes and addressed technical deficiencies to meet the commitments in their action plans on the strategic deficiencies identified by the FATF. “The Commission’s assessment of the available information leads it to conclude that Barbados, Gibraltar, Panama, Uganda and the United Arab Emirates no longer have strategic deficiencies in their AML/CFT regimes,” it said.
The FATF has updated its list of ‘Jurisdictions under Increased Monitoring’ since the last amendments to Delegated Regulation (EU) 2016/1675. At its plenary meeting in February 2024, the FATF added Kenya and Namibia to its list and removed Barbados, Gibraltar, Uganda and the United Arab Emirates from its list.
Commenting on the development, the Executive Director, Financial Intelligence Authority (FIA), Mr. Samuel Were Wandera said “This is equally a very important milestone given the significant consequences this had on our economy and nationals doing business with the EU.”
On his part, the Chairperson of the FIA Board of Directors Mr. Alinaffe Kalule observed that “This achievement restores our country’s standing on the global stage but also paves the way for renewed investor confidence and economic growth, reaffirming our unwavering commitment to upholding the highest standards of financial integrity and transparency.”
FATF leads global action to tackle money laundering, terrorist and proliferation financing. The 39-member body sets international standards to ensure national authorities can effectively go after illicit funds linked to drug trafficking, illicit arms trade, cyber fraud, and other serious crimes. FATF researches how money is laundered and terrorism is funded, promotes global standards to mitigate the risks, and assesses whether countries are taking effective action.
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The full statement can be accessed on the link below