Uganda Achieves Significant Progress in FATF Compliance
Uganda Achieves Significant Progress in FATF Compliance: Re-Rating Approved for Key Recommendations.
At the recent 48th Taskforce of Senior Officials and ESAAMLG Council of Ministers meeting, Uganda reached a key milestone in its efforts to combat financial crimes. The task force approved Uganda’s request to re-rate on four critical Financial Action Task Force (FATF) Recommendations—namely, Recommendations 19, 24, 26, and 34- now considered Largely Compliant (LC). This approval marks a significant step forward in the country's ongoing work to strengthen its Anti-Money Laundering (AML), Counter-Terrorism Financing (CFT), and Counter-Proliferation Financing (CPF) measures.
The approved re-rating pertains to the following recommendations:
Recommendation 19 (Higher Risk Countries): Enhancing measures to mitigate risks associated with higher-risk countries.
Recommendation 24 (Transparency and Beneficial Ownership of Legal Persons): Improving transparency regarding the ownership of legal persons and ensuring that law enforcement agencies have timely access to beneficial ownership information.
Recommendation 26 (Regulation and Supervision of Financial Institutions): Strengthening regulatory and supervisory measures for financial institutions to prevent money laundering and terrorism financing.
Recommendation 34 (Guidance and Feedback): Ensuring that Uganda's authorities provide adequate guidance to financial institutions on AML/CFT requirements.
These improvements are pivotal in ensuring that Uganda’s financial institutions, businesses, and other accountable persons align with global standards for combating money laundering, terrorism financing, and other related financial crimes.
Following these upgrades, Uganda is now compliant or largely compliant with 29 out of the 40 FATF Recommendations. This marks a substantial improvement in the country’s standing on the international stage. Uganda’s compliance rate has risen from 63% in the fiscal year 2023/24 to 72% in FY 2024/25—a reflection of the country’s sustained commitment to addressing financial crime.
What This Means for Uganda
Uganda's improved compliance with FATF standards signals progress in creating a secure and transparent financial system. It boosts the country’s reputation as a safe place for both domestic and international financial transactions, which is crucial for attracting foreign investments and fostering economic stability. Furthermore, it demonstrates the Financial Intelligence Authority’s (FIA) commitment to continuously strengthening Uganda’s AML/CFT framework.
The re-rating also brings Uganda closer to full compliance with international AML/CFT standards. As Uganda prepares for future evaluations, the country will continue working with various stakeholders, including financial institutions, regulatory bodies, and law enforcement agencies, to maintain and further improve AML/CFT compliance. This achievement comes at a pivotal time when Uganda is looking to build a robust financial system capable of withstanding the challenges
posed by transnational financial crimes. The approval of Uganda’s re-rating for FATF Recommendations 19, 24, 26, and 34 reflects the success of ongoing reforms aimed at creating a more transparent and secure financial environment.
The Financial Intelligence Authority remains committed to collaborating with national, regional, and international stakeholders to ensure the safety and integrity of Uganda’s financial system. This achievement also sets the stage for future engagements with the FATF and other international bodies to further improve Uganda’s compliance with the global standards of financial security.
With continued efforts and partnerships, Uganda aims to combat financial crimes within the region to continue upholding global standards for financial integrity.