Financial Crimes Digest

In this issue

Uganda off the Financial Grey list, what now?

During the fifth plenary meeting held by the Financial Action Task Force (“FATF”) from 21 - 23 February 2024, Uganda was officially removed from the FATF grey list marking a significant achievement in the country’s efforts to combat money laundering, countering terrorism financing and proliferation financing (“ML/FT/PF”). Uganda was placed on the FATF grey list back in February 2020 for having weaknesses in its efforts to combat ML/TF/PF. Grey listing adversely impacts a country’s international reputation, trade relations, investment opportunities, diplomatic ties, among others. This has a snowball effect on a country’s ability to raise capital, attract aid, access international finance, engage in international trade and to sustain diplomatic relationships.

By getting off the grey list, it means Uganda has demonstrated its compliance with, and commitment to, international AML/CFT/CPF standards, which should give foreign investors greater confidence in the integrity of its financial systems. This will lead to potential increase of capital flows into Uganda ultimately translating to increased economic growth.