Musasizi tasks FIA to keep integrity of country’s financial system
Musasizi emphasised that Uganda must meet all international standards to remain compliant and avoid being placed on the global anti-money laundering "grey" list.
Finance Minister Henry Musasizi. (File)
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Finance Minister Henry Musasizi has asked the Financial Intelligence Authority (FIA) to intensify efforts to protect the integrity of Uganda's financial system, warning that any weaknesses in combating money laundering, terrorism financing and other financial crimes could undermine the country's reputation and economic prospects.
Speaking during a meeting with the FIA Board and Management at the Ministry of Finance headquarters, Musasizi emphasised that Uganda must meet all international standards to remain compliant and avoid being placed on the global anti-money laundering "grey" list.
The meeting was attended by FIA Board Chairperson Alinaffe Kalule, Executive Director Samuel Were Wandera, members of the Board and senior management.
Musasizi said the Authority plays a central role in safeguarding Uganda's financial sector and maintaining investor confidence.
"The Financial Intelligence Authority must ensure that all the necessary requirements are fulfilled to keep the integrity and stability of Uganda's financial system," Musasizi said.
He warned that financial crimes extend beyond domestic concerns and can have far-reaching implications for the country's economy.
"The financing of criminal and terrorist activities damages the reputation and credibility of the country. FIA must therefore work diligently to safeguard the economy from the threats of money laundering, terrorism financing and proliferation financing," he said.
He commended the FIA Board and management for strengthening the institution over the years and positioning it among the country's key agencies in combating illicit financial flows.
"I thank the Board and Management for working hard to make the Financial Intelligence Authority a centre of excellence in combating money laundering, terrorism financing and proliferation financing," Musasizi said.
A statement from the ministry stated that Musasizi's remarks come at a time when countries across the world are under increasing pressure to strengthen systems for detecting illicit financial flows, money laundering and terrorist financing.
Failure to comply with international anti-money laundering standards can result in a country being placed on the Financial Action Task Force (FATF) grey list, a designation that signals strategic deficiencies in combating financial crimes. Countries on the grey list often experience increased transaction costs, enhanced scrutiny from correspondent banks and reduced investor confidence.
The minister stressed that preserving the integrity of Uganda's financial system is essential for protecting economic growth and ensuring confidence among development partners, investors and the banking sector.
FIA Board Chairperson Alinaffe Kalule reaffirmed the Authority's commitment to fulfilling its mandate and ensuring Uganda remains compliant with international standards.
He revealed that Uganda is preparing for another round of international assessment in 2028, making continued reforms critical over the next two years.
"Uganda will undergo another round of mutual evaluation in 2028," Kalule said, underscoring the importance of strengthening legal, institutional and operational frameworks before the assessment.
During the meeting, FIA Executive Director Samuel Were Wandera briefed the minister on ongoing efforts to modernise Uganda's legal framework to address emerging financial technologies.
Wandera disclosed that the Authority is drafting legislation to regulate virtual assets and virtual asset service providers, a move aimed at addressing risks associated with cryptocurrencies and other digital financial products.
"The Authority is currently drafting a Bill to regulate virtual assets and virtual asset service providers," Wandera reported.
The proposed legislation is expected to establish a regulatory framework for businesses dealing in digital assets while strengthening Uganda's capacity to monitor transactions that could be exploited for money laundering, terrorism financing or proliferation financing.
The Financial Intelligence Authority was established under the Anti-Money Laundering Act to detect and deter money laundering and related financial crimes. It receives and analyses suspicious transaction reports from reporting entities before disseminating intelligence to law enforcement agencies for investigation and prosecution.
Its mandate covers combating money laundering, terrorism financing and proliferation financing, while supporting efforts to preserve the integrity and stability of Uganda's financial system.