Uganda Seeks EU Delisting from Anti-Money Laundering Grey List

Uganda is actively lobbying the European Union (EU) to expedite its removal from the regional body's anti-money laundering and terrorism financing grey list, one year after being removed from the Financial Action Task Force's (FATF) grey list.

The country's legislature has been working on amending related laws, including the Anti-Money Laundering Act, which now excludes charitable organizations from the list of accountable entities. However, Uganda's removal from the EU's grey list hinges on the passage of a resolution by the EU Parliament.

Currently, six countries remain on the EU's high-risk list, including Trinidad and Tobago, Afghanistan, Barbados, Nigeria, Cameroon, the Democratic Republic of Congo (DRC), South Africa, and Burkina Faso. Only four of these countries have met the delisting requirements.

Uganda's Deputy Speaker, Thomas Tayebwa, emphasized the urgency of legislative reforms during a meeting with Antonella Sberna, Deputy President of the European Union Parliament, in Brussels. "Parliament, for the first time, amended seven laws in two weeks because we were rushing to meet the requirements," Tayebwa stated.

Uganda was placed on the FATF grey list in February 2020, four years after being added to the EU's high-risk list. While the FATF's announcement regarding Uganda's removal from its grey list was made several months ago, the necessary resolution from the EU Parliament has delayed the country's delisting.

"The European Union Commission has indicated its support for splitting the resolution so that the four compliant countries can be removed. We cannot continue paying for the sins of those who have not complied. However, we were informed that the European Parliament rejected this proposal," Tayebwa explained.

Other countries such as Kenya, Tanzania, South Sudan, and the DRC are still on the FATF grey list. The FATF places countries with weaknesses in anti-money laundering frameworks on the grey list, signaling vulnerability to money laundering and terrorism financing. While the grey list shows a country is addressing these issues, the blacklist includes countries that are deemed uncooperative.