Government has set a deadline of January 2024 for the new leadership of the Financial Intelligent Authority (FIA) to ensure that Uganda is removed from the grey list.
The Ministry of Finance and Economic Development made this announcement during the handover of office from the former Executive Director, Sydney Asubo, to the new Executive Director, Samuel Were Wandera.
Minister of State for General Duties, Henry Musasizi, cautioned the new leadership about the challenging task of combatting money laundering and emphasized that concerted effort is required to achieve the goal.
Musasizi urged the new leadership to prioritize the removal of Uganda from the grey list by the given deadline.
“We must achieve this as early as possible but not later than January 2024, so that will be your number one task. The threat of money laundering is increasing; you need to also deal with that. There are a number of things that you need to deal with and we shall be available to give you the necessary support,” he said.
Failure to remove Uganda from the grey list could have negative consequences for the country's economy, including deterring potential investments.
Money laundering and financing of terrorism are serious financial crimes that need to be addressed effectively.
Asubo revealed that out of the 22 issues that Uganda needed to address in 2020 in order to be taken off the grey list, only one remains pending.
“We are happy to report that URSB is working very hard and all stakeholders are working very hard to support this move. I call upon all companies in this country to provide beneficial owners’ information to URSB because it is now a requirement. This is the only thing that is keeping us on the grey list,” he said.
He expressed confidence that the new director will be able to handle this issue and ensure Uganda's removal from the list by February 2024, provided concerns related to capacity building and real-time access to company information are addressed.
Wandera, the new Executive Director of the FIA, pledged his commitment to removing Uganda from the grey list by early 2024.
He acknowledged that significant progress has been made in addressing the deficiencies highlighted, and he is optimistic about the upcoming discussions in September, which will provide an indication of Uganda's progress towards this goal.
“So the information which will give us an indication that Uganda will be removed from the grey list is going to be discussed in September 2023. It is a process but we have made significant progress in addressing the deficiencies which were highlighted,” he said.
Being on the grey list has negative implications for Uganda's reputation in combating financial crimes, such as corruption, money laundering, and terror financing.
The FIA was established in 2014 to monitor, investigate, and prevent money laundering in the country.
To meet international standards and remove Uganda from the grey list, the country must address technical flaws in its legal framework and ensure timely access to beneficial ownership information.
It is crucial for Uganda to tackle illicit financial flows in order to protect its economy and facilitate development.
