On 23rd January, 2025, the Parliament of Uganda took a landmark step and officially approved the motion to amend Schedule 2 of the AntiMoney Laundering Act, Cap. 118, thereby removing Non-Governmental Organizations (NGOs), Churches, and other Non-Profit Organizations (NPOs) from the list of accountable persons in the fight against money laundering.
National NPO Working Group on Financial Action Task Force (FATF) in Uganda said that this decision marks a significant milestone for the Civil Society and Non-Profit Organizations (NPOs), recognizing their invaluable contribution to the socio-economic development of the country amidst increasing regulatory challenges.
“This significant legislative development- amendment, the culmination of years of determined collective advocacy led by the Defenders’ Protection Initiative (DPI) and the National NPO Group on the Financial Action Task Force (FATF), is greeted with immense appreciation. The efforts of advocacy included comprehensive research, policy briefs, and strategic engagement with various governmental agencies at national, regional and global levels—a testament of the collaborative commitment to fostering an enabling environment for civil society organizations in Uganda,” said Yona Wanjala executive director Defenders Protection Initiative and the Civic Advisory Hub during a press conference in Kampala.
He further said that the removal of NPOs from the list of accountable persons not only acknowledges their crucial contribution to national development but also paves the way for a more supportive regulatory framework amidst various operational challenges.
“This is a welcomed departure, from what has been the norm, characterized by imposing broad and blanket restrictions on NPOs, a vital sector that supports communities and drives progress. Furthermore, organizations will continue to fulfill their statutory and reporting obligations to the NGO Department within the Ministry of Internal Affairs and the Registrar of Companies,” said Peter Gwayaka Magela, Executive Director,DENIVA
“We believe that this amendment will not only rebrand the regulatory environment, which has often been viewed as overbearing, but will also foster an atmosphere of trust and collaboration between the government and the NPO sector,” Robert Bob Kirenga, executive director of National Coalition of Human Rights Defenders Uganda remarked.
Call to Action
The Minister of Finance, Planning and Economic Development to expedite the issuance of the relevant statutory instrument to implement the Parliamentary approval amending Schedule 2 of the Anti-Money Laundering Act, Cap. 118.
The Financial Intelligence Authority (FIA) to formally notify all NGOs that they are no longer required to file reports, submit returns, or fulfill other obligations previously imposed on accountable persons.
The relevant law enforcement agencies to promote independent, objective and ethical information gathering and impartial investigation of TF, within the available policy and legal framework.
The NGO regulatory authorities to work with NPOs, to have clear policies that promote accountability, integrity and public confidence in the administration and management of NPOs; undertake outreach and educational programmes as appropriate to raise and deepen awareness among NPOs as well as the donor community about the potential vulnerabilities of NPOs to TF abuse and terrorist financing risks, and the measures that NPOs can take to protect themselves against such abuse.
