The Minister of Finance, Planning and Economic Development, Matia Kasaija, has noted that the removal of Uganda from the “Grey List”, by the Financial Action Taskforce (FATF), not only demonstrates the integrity of her financial system, but also reaffirms the commitment to effective regulation and enhanced standing within the international community.
Last week, the FATF announced that Uganda was removed from the Grey List, marking a significant milestone in the country’s dedication to enhancing financial transparency and combating money laundering and terrorism financing.
The decision of delisting Uganda from the FATF Grey List was announced by the FATF President, Mr. T.Raja Kumar while presenting the outcomes of the fifth plenary meeting which took place in Paris, France on 21st -23rd February.
Kasaija explained that the removal from the “Grey List” unlocks a host of benefits for Uganda’s economy.
“It will build investor confidence, reduce the cost of doing business and reinforce our global reputation. We will now have unrestricted access to international markets and credit, providing a vital boost to government’s socio-economic transformation efforts,” he noted.
He said that by aligning Uganda’s Anti-Money Launding and Countering Terrorist Financing measures with international standards, the country will be able to now engage seamlessly with the global financial system.
Kasaija added that this will facilitate trade, enhance competitiveness, and provide more opportunities for economic diversification and integration into global value chains.
Kasaija further explained that the government of Uganda is committed to sustaining the excellent progress so far made.
“This will be achieved through the implementation of a comprehensive post–grey list strategy, including continuous review of our legal framework, sustained capacity of all the relevant institutions to effectively combat Money Laundering , Financing of Terrorism and Proliferation and ongoing engagement with the private sector,” he added.
The Financial Action Taskforce (FATF) is a global inter- governmental body mandated to ensure that Governments fight Money Laundering, Financing of Terrorism and Proliferation; and other threats to the integrity of the financial system.
Following a decision by the FATF Plenary in February 2020, Uganda was placed on the grey list of countries under increased monitoring and given a list of 22 action plan items to remedy our shortcomings.
Had Uganda failed to fulfill these actions, the country would have been at a risk of being blacklisted. This would have adversely affected the ability of our financial institutions to conduct international financial transactions and international business in general.
Furthermore, the FATF sanctions would have prohibited other foreign financial institutions from dealing with their Ugandan counterparts, potentially crippling our financial sector.