The European Union has delisted Uganda from its blacklist of high-risk countries after years of scrutiny.
The European Commission on June 10, 2025, announced an update to its list of high-risk jurisdictions facing strategic deficiencies in anti-money laundering and counter-terrorism financing (AML/CFT).
The development, a major win for the economy, is expected to ease transactions and restore confidence in Uganda’s financial system.
Uganda, alongside seven other countries including the United Arab Emirates and Jamaica, was removed from the blacklist after what the Commission described as a “thorough technical assessment.”
The move follows years of domestic reforms and high-level diplomatic lobbying.
Banks and financial institutions in Europe had been required to apply enhanced due diligence to Ugandan transactions, slowing transfers, increasing compliance costs, and deterring investors.
The decision aligns with the Financial Action Task Force (FATF), the global anti-money laundering watchdog, which removed Uganda from its grey list in February 2024 after confirming that Kampala had substantially met international AML/CFT standards.
A key figure in Uganda’s lobbying effort was Deputy Speaker of Parliament Thomas Tayebwa, who in February met EU Parliament Deputy President Antonella Sberna in Brussels to push for delisting.
Tayebwa revealed that Parliament had made an extraordinary effort to meet compliance benchmarks.
“Parliament, for the first time, amended seven laws in two weeks because we were rushing to meet the requirements,” Tayebwa said, citing changes to the Anti-Money Laundering Act, which excluded NGOs, churches and other charitable organisations from the list of accountable entities.
He added that while Uganda had met all FATF and EU Commission requirements, its fate was held up by the European Parliament’s reluctance to pass a joint resolution due to other non-compliant countries bundled in the same document.
“We cannot continue paying for the sins of those who have not complied,” Tayebwa protested.
He warned the ongoing listing was undermining Uganda’s credit rating and limiting access to affordable international loans.
Otuke County MP Paul Omara, who accompanied Tayebwa to Brussels, said the grey-listing raised Uganda’s risk profile: “Uganda will only be able to access credit at higher interest rates.”
Uganda’s Ambassador to Belgium, Mirjam Blaak, also cited frequent investor complaints: “I have met companies interested in Uganda’s tourism sector, but they say, ‘banks refuse to provide guarantees because Uganda is still on the grey list’.”
The issue appeared to gain added political urgency after a closed-door meeting last month in Gulu between EU officials and Gen.
Caleb Akandwanaho (Salim Saleh), President Museveni’s brother and senior presidential advisor on wealth creation.
While the meeting details remain undisclosed, multiple sources say Uganda’s blacklist status featured prominently in the discussion.
Uganda was originally blacklisted in 2020 due to weak enforcement of anti-money laundering laws and gaps in financial oversight.
Since then, the country has undertaken a series of reforms, empowering the Financial Intelligence Authority (FIA), tightening legislation, and increasing enforcement.
Economists have welcomed the EU’s delisting decision as a vote of confidence in Uganda’s financial system.
Bank of Uganda Deputy Governor Michael Atingi-Ego warned previously that grey-listing discouraged international business and raised Uganda’s risk premium.
“Delisting will enhance Uganda’s global reputation and attract more capital through easier, cheaper transactions,” he said.
Wilbrod Owor, Executive Director of the Uganda Bankers Association, had also cautioned that the listing was harming Uganda’s most promising sectors, including tourism and agro-industry.
The EU’s updated regulation, enacted under Article 9 of its 4th Anti-Money Laundering Directive, will take legal effect after a one-month scrutiny period by the European Parliament and Council.
For Uganda, the decision is not just regulatory–it is a diplomatic and economic victory as the country eyes new borrowing, expanded trade, and long-term investor confidence.
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