The Financial Intelligence Authority (FIA) is intensifying efforts to regulate virtual assets and curb financial crimes as digital currencies gain wider use in the country.
According to Edward Amanyire, the Authority’s manager for strategic analysis and statistics, the regulator is strengthening oversight mechanisms to prevent money laundering and terrorism financing linked to virtual asset transactions.
Speaking during the weekly press briefing organised by the Uganda Law Society in Kampala on Thursday, Amanyire said financial institutions are now required to closely track both the source and purpose of funds moving through the financial system.
“Financial institutions in Uganda now track both the source and purpose of funds to prevent money laundering, terrorism financing, and proliferation financing. While combating money laundering requires cooperation with multiple partners, preventing terrorism financing often involves identifying international funding sources rather than just local actors,” he said.
Amanyire noted that regulators conduct detailed risk assessments to understand the scale and movement of virtual assets within Uganda’s financial ecosystem.
“We monitor how much virtual currency enters and leaves Uganda and ensure that Virtual Asset Service Providers comply with reporting and monitoring requirements,” he said.
He explained that virtual assets first emerged globally around 2008 but activity in Uganda was first detected in 2014. As the sector grew, global regulators began introducing frameworks to address risks associated with digital currencies.
In 2019, the Financial Action Task Force (FATF) issued guidance requiring countries to treat Virtual Asset Service Providers (VASPs) similarly to traditional financial institutions for purposes of anti-money laundering oversight.
Following the directive, Uganda amended the Anti-Money Laundering Act in 2020 to include VASPs among entities required to report suspicious transactions to authorities.
“The inclusion of VASPs under Uganda’s anti-money laundering framework strengthens our ability to detect and prevent illicit financial flows, ensuring that the virtual asset sector develops in a secure and regulated environment,” Amanyire said.
Authorities say the tighter regulations are part of broader efforts to safeguard Uganda’s financial system while allowing innovation in digital finance to grow within a monitored and accountable framework.
