Rédaction Africa Links 24 with The Observer
Published on 2024-02-26 03:08:15
Uganda has recently achieved the milestone of being removed from the grey list of the Financial Action Task Force (FATF), a crucial categorization that could have led to the country’s financial industry being blacklisted. The grey list serves as a warning to countries, authorities, and the international community, signaling that caution should be exercised when engaging in financial transactions with the country. Failure to address the deficiencies highlighted in being on the grey list could result in blacklisting, indicating that the country is deemed unsafe for financial dealings due to potential money laundering and terrorism financing activities.
The removal from the grey list is seen as a significant accomplishment in Uganda’s effort to enhance financial transparency and combat money laundering and terrorist financing, as stated by the Financial Intelligence Authority (FIA) of Uganda. The concerns raised about Uganda’s anti-money laundering and counter-terrorism financing capabilities had resulted in increased scrutiny of international transactions, causing delays and disruptions in essential business operations. Some financial services and investor brokers had even suspended their activities in response to these concerns.
In February 2020, FATF placed Uganda on the grey list due to identified deficiencies in its anti-money laundering and counter-terrorism financing measures. In response, Uganda embarked on a series of rigorous reforms to align its financial regulations with international standards. The government implemented key reforms aimed at strengthening the country’s systems to combat money laundering and terrorism financing effectively.
The decision to delist Uganda from the grey list was communicated following the outcomes of the fifth plenary meeting held in Paris, France, as announced by the FATF president, T.Raja Kumar. The reforms undertaken by Uganda included adopting a national strategy for anti-money laundering and countering proliferation financing, enhancing mutual and legal assistance, and strengthening the capacity of law enforcement agencies to investigate and prosecute terrorism financing activities.
Additionally, Uganda focused on developing risk-based supervision of financial institutions and designated non-financial business sectors, implementing targeted financial sanctions related to proliferation financing, and enhancing the capacity of relevant ministries, departments, and agencies involved in anti-money laundering and counter-terrorism financing efforts.
The successful removal from the FATF grey list affirms Uganda’s commitment to fostering a transparent and secure financial environment. The country’s efforts to strengthen its anti-money laundering and counter-terrorism financing framework not only enhance its reputation as a responsible member of the global financial community but also attract investors and provide greater access to international financial markets.
Moving forward, Uganda remains committed to consolidating the achievements made during this period and further strengthening its anti-money laundering and counter-terrorism financing regime. The country will continue to work closely with FATF and other relevant organizations to ensure the effectiveness of its financial regulations and combat illicit financial activities.
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