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 challenges related to crime and corruption, despite having established laws and institutions aimed at combating these issues. Endemic corruption, particularly within government procurement processes, severely undermines investment opportunities, while organized crime and human trafficking remain prevalent due to weak law enforcement and a lack of political will to address these problems effectively.

Uganda's economy presents a mix of promising opportunities and significant challenges for investors, particularly from the U.S. The country boasts a young, English-speaking population, abundant arable land, and substantial oil reserves, with Foreign Direct Investment (FDI) surging by 79.2% to $2.9 billion in 2023, largely driven by pre-first oil investments. However, investors must navigate a landscape marked by persistent corruption, human rights violations, and political instability, especially as the nation approaches the 2026 elections, alongside ongoing economic recovery from the COVID-19 pandemic, which has seen improvements in industrial, service, and agricultural sectors despite inflationary pressures and high commodity prices.