Uganda Tightens Financial Rules for Fintechs and Microfinances Ahead of 2028 FATF Review

Uganda is taking proactive steps to protect its financial system from illicit transactions by introducing comprehensive Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) guidelines tailored for Tier IV microfinance institutions and fintech companies.

Speaking in Kampala, Financial Intelligence Authority (FIA) Executive Director Samuel Were Wandera urged sector players to invest significantly in professional capacity building. He stressed that staff members must possess the skills needed to accurately identify suspicious transactions, properly verify beneficial owners, and escalate concerns appropriately.

The newly introduced toolkits and guidelines are designed to streamline compliance mechanisms as the country prepares for the upcoming 2028 Financial Action Task Force (FATF) mutual evaluation. Uganda successfully exited the FATF grey list in February 2024 and was cleared from the European Union’s high-risk third-country list in July 2025.

Mr. Were cautioned that having written policies is not enough without practical, day-to-day execution. He emphasized that senior management must actively provide the leadership and resources required to make compliance fully operational.

Dr. Bob Munene, Acting Commissioner for Financial Services in the Ministry of Finance, noted that while fintechs and microfinances drive critical financial inclusion, their accessibility also exposes them to potential exploitation by criminals. Financial institutions must carefully balance expanding access with robust integrity controls.

Meanwhile, Financial Sector Deepening (FSD) Uganda is rolling out targeted capacity-building programs to help SACCOs, microfinance institutions, and fintechs effectively utilize the new toolkits to achieve full regulatory compliance.

Read more on the Daily Monitor.