Uganda has successfully navigated its way off the Financial Action Task Force’s (FATF) grey list, according to the Bank of Uganda.
The FATF Plenary, held in Paris from 21-23 February 2024, recognised Uganda, along with Barbados, Gibraltar, and the United Arab Emirates, for their substantial progress in addressing anti-money laundering and combating the financing of terrorism (AML/CFT) deficiencies identified during mutual evaluations.
This means, these countries will no longer be subjected to increased monitoring by the FATF. One of the key outcomes of new risk-based guidance on beneficial ownership is the introduction of risk-based guidance for implementing recommendation 25 on beneficial ownership and transparency of legal arrangements.
This initiative aims to enhance global transparency of beneficial ownership, preventing criminals and terrorists from concealing their activities behind intricate corporate structures and legal arrangements such as trusts.
For the revisions to recommendation 16 and wire transfers, the plenary agreed to release a range of options for potential changes to recommendation 16 and its interpretive note on wire transfers.
These revisions are designed to adapt FATF standards to changes in payment systems’ business models and messaging standards while maintaining technology neutrality.
In preparation for the next round of mutual evaluations, the modifications to assessment methodology plenary finalised modifications to its assessment methodology.
This reflects recent revisions to the FATF standards, particularly aimed at protecting non-profit organisations from potential abuse for terrorist financing.
Through the jurisdictions with virtual asset activity, FATF identified jurisdictions with materially important virtual asset activity, emphasising the need to supervise and regulate this activity in compliance with FATF requirements.
Barbados, Gibraltar, Uganda, and the United Arab Emirates were commended for their progress and removed from the increased monitoring list following successful on-site visits.
However, Kenya and Namibia were added to the list, signaling their commitment to implementing an action plan to address strategic deficiencies swiftly.
Strategic Initiatives for 2024-2026
Delegates discussed strategic priorities for 2024-2026, focusing on preventing abuse of the international financial system by criminals, corrupt entities, and terrorists.
The finalised priorities will be presented at the upcoming FATF ministerial meeting in April.
Increasing Beneficial Ownership Transparency
Following revisions to recommendation 25 in February 2023, the FATF updated its risk-based guidance, complementing existing guidance on recommendation 24.
This initiative aims to help stakeholders assess and mitigate money laundering and terrorist financing risks in trusts and similar legal arrangements.
Leveraging Digital Transformation: Virtual assets
The FATF conducted a stocktake of global implementation levels of revised recommendation 15 on virtual assets. An overview of steps taken by jurisdictions with significant virtual asset activity will be published to encourage full implementation.
Payment Transparency
Proposed amendments to recommendation 16 were discussed to facilitate faster, cheaper, and more transparent cross-border payments, ensuring compliance with AML/CTF standards while remaining technology-neutral.
Protecting Non-profit Organisations
Amendments to recommendation 8 were agreed upon to protect non-profit organisations from potential terrorist financing abuse.
Changes to the assessment methodology clarify obligations to apply risk-based measures to vulnerable NOPs.
FATF Presidency 2024-2026
Ms. Elisa de Anda Madrazo of Mexico was appointed as the next president of the FATF for a fixed two-year term, succeeding Mr. T. Raja Kumar, following a comprehensive consultation process.
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