Museveni Calls for Regional Unity in Combating Illicit Financial Flows

President Yoweri Museveni has stated that money laundering, the financing of terrorism, and the proliferation of weapons of mass destruction are not merely financial crimes but pose direct threats to national security, economic stability, and development.

“If left unchecked, these illicit activities have the potential to undermine trust in financial systems, discourage investment, and support criminal networks that destabilize our societies,” said the President.

This was stated in the President’s speech, which was read on his behalf by the Prime Minister, Rt. Hon. Robinah Nabbanja, at the gathering of Senior Officials from the Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG) at Speke Resort Munyonyo on Wednesday.

“Your presence and active participation in these regional efforts are a testament to our collective resolve to strengthen financial integrity, combat illicit financial flows, and safeguard our economies from the harmful effects of money laundering, terrorism financing, and proliferation financing.”

He noted that these financial crimes are not confined to national borders but are threats that demand regional and global collaboration.

The President further argued that criminal networks exploit weaknesses in financial systems to move illicit funds across borders, undermining economic growth, fueling corruption, and funding terrorism.

^{_{Prime Minister, Rt. Hon. Robinah Nabbanja}}

Recent reports indicate that Africa loses billions of dollars annually due to illicit financial flows, mainly through organized crime, corruption, and tax evasion. He applauded the Financial Action Task Force (FATF) and ESAAMLG for their continued efforts to push for stronger Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) measures. However, he noted that criminals are continuously adapting their methods.

“Terrorist groups and organized criminal networks continue to finance their activities through illegal trade, drug trafficking, and the exploitation of weak regulatory frameworks. Strengthening compliance with global standards such as the Financial Action Task Force (FATF) Standards and enhancing collaboration with law enforcement agencies is at the forefront of our priorities,” Museveni added.

He told the delegates that the Eastern and Southern African region faces threats from several terrorist groups, including Al-Shabaab and the Islamic State (IS). Additionally, the rapid digitalization in Sub-Saharan Africa has opened up new avenues for terrorist groups to recruit, radicalize, and fundraise online, presenting fresh challenges for counter-terrorism efforts.

He stated that Uganda, like other ESAAMLG Member States, has undertaken significant steps to combat money laundering and terrorism financing.

“We have strengthened our legal frameworks, established and reinforced the relevant institutions, and worked closely with regional and international counterparts to exchange intelligence and best practices. However, we acknowledge that combating financial crime is a constantly evolving challenge that requires ongoing adaptation and vigilance,” said the President.

Adding, “I have been informed that different jurisdictions in the Eastern and Southern Africa region have made progress in implementing measures to combat money laundering and terrorism financing. However, experience has proven that it is increasingly difficult for states to fight financial crimes on their own, except by working together. Therefore, as a community in the region and beyond, we need to remain resolute in working together to secure the integrity of the global financial system.”

He commended ESAAMLG for its vital role in fostering regional cooperation, supporting capacity building, and ensuring compliance with international standards, particularly those set by the Financial Action Task Force (FATF).

“Together, we can ensure that our nations are not exploited for illicit financial activities,” he emphasized.

He also commended ESAAMLG for its contribution towards the removal of Uganda from the list of jurisdictions under increased monitoring by the FATF, commonly known as the FATF “grey list,” in 2024.

“I wish to thank the various Cooperating and Supporting Nations (COSUNS), the Financial Action Task Force (FATF), and Development Partners here today. This is due to their tireless commitment to supporting countries in the Eastern and Southern Africa region in implementing robust measures to combat money laundering, terrorism financing, and proliferation financing,” said Museveni.

He urged them to focus on actionable strategies that will strengthen the collective response of countries to financial crimes, prioritizing information sharing, capacity building, and the harmonization of policies to enhance the region’s ability to detect, prevent, and prosecute money laundering and terrorism financing.

“Uganda remains fully committed to the ESAAMLG agenda and will continue to support regional and global initiatives to build a safer and more transparent financial system. Together, we can strengthen the integrity of the global financial system, combat illicit financial flows, and contribute to global economic stability.”

He added that there is a need to permanently address Africa’s vulnerable position in the global arena of economic and political giants, noting that Africa remains easy prey for plunder and marginalization as long as progress toward economic and political integration remains sluggish.

Samuel Were Wandera, the Executive Director of the Financial Intelligence Authority (FIA) in Uganda, said that hosting the 49th Taskforce of Senior Officials Meeting is an important milestone in enhancing Uganda’s and the region’s efforts to combat money laundering and counter the financing of terrorism and proliferation.

Uganda was meant to host the meeting in August/September 2021 during its presidency but was unable to do so due to the COVID-19 pandemic.

He noted that the Government of Uganda remains firmly committed to the fight against financial crimes, as evidenced by the strong legal, regulatory, and institutional framework put in place to ensure the integrity and stability of the financial system.

Hon. Henry Musasizi, the Minister of State for Finance, Planning, and Economic Development (General Duties), while representing the Finance Minister, Matia Kasaija, mentioned that the ministry has made significant progress in strengthening Uganda’s Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) regime, such as the removal of Uganda from the Financial Action Task Force (FATF) “grey list” and enhancing the country’s AML/CFT legal and regulatory framework.

^{_{Hon. Henry Musasizi, the Minister of State for Finance, Planning, and Economic Development (General Duties)}}.

“We amended several laws, including the Anti-Money Laundering Act, Cap. 118, and the Anti-Terrorism Act, to align them with the Financial Action Task Force (FATF) Standards,” mentioned the minister.

“These achievements demonstrate our government’s strong political commitment and multi-stakeholder collaboration in strengthening financial integrity. While we recognize that challenges remain, especially in emerging areas such as virtual assets, Uganda remains dedicated to building a resilient AML/CFT regime.”