Uganda Country Summary

FATF Status

Uganda is no longer on the FATF List of Countries that have been identified as having strategic AML deficiencies

Compliance with FATF Recommendations

The last follow-up to the Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Uganda was undertaken in 2024. According to that Evaluation, Uganda was deemed Compliant for 16 and Largely Compliant for 9 of the FATF 40 Recommendations. It remains Highly Effective for 0 and Substantially Effective for 0 of the Effectiveness ratings.

Uganda grapples with significant corruption challenges that hinder investment and undermine governance, despite having established laws and institutions aimed at combating such issues. The prevalence of organized crime, human trafficking, and various illicit markets is exacerbated by corruption and weak law enforcement, while the government's restrictive measures against civil society further complicate efforts to promote transparency and accountability.

Uganda's economy is characterized by a market-driven environment with significant growth potential, particularly in the oil and gas sector, which has been a major contributor to the country's economic recovery post-COVID-19, achieving a growth rate of 6.1% in 2024. The nation boasts a young, English-speaking population and abundant natural resources, making it an attractive destination for foreign direct investment (FDI), which reached a record $3.4 billion in 2024. However, challenges such as corruption, political instability, and a complicated regulatory framework pose risks for investors, particularly ahead of the 2026 elections, necessitating careful consideration of the local business landscape.