Kampala, 15 July 2025 — Uganda has officially been removed from the European Union’s list of high-risk third countries for money laundering and terrorist financing, marking a significant step in the country’s financial reform journey.

The update follows a vote by the European Parliament on 9 July 2025, endorsing the European Commission’s most recent revisions to the EU’s Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) high-risk list. Alongside Uganda, other jurisdictions removed from the list include Barbados, Gibraltar, Jamaica, Panama, the Philippines, Senegal, and the United Arab Emirates.

This development reflects Uganda’s progress in addressing strategic deficiencies in its AML/CFT regime and aligning its financial systems with international standards. Removal from the grey list means that EU-based financial institutions will no longer be required to apply enhanced due diligence when engaging with Ugandan entities.

The change is expected to ease cross-border financial transactions, enhance investor confidence, and support Uganda’s attractiveness as an emerging market for foreign investment, particularly in sectors such as private capital, infrastructure, and financial services.

The EU’s high-risk list is established under the 4th Anti-Money Laundering Directive and identifies jurisdictions with deficiencies in their AML/CFT frameworks. Delisting from this list is a notable achievement, signalling increased regulatory maturity and institutional resilience.

As East African economies continue to strengthen their financial governance systems, Uganda’s removal from the EU grey list marks a positive development for the broader regional investment landscape and continues its upward trajectory as an attractive destination for private capital deployment.

SOURCE: EU parliament