Why NGOs have welcomed the Anti-Money Laundering Act

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Non-governmental organisations (NGOs) have applauded the recent parliamentary amendment to the Anti-Money Laundering Act, which removes them from the list of high-risk entities.

This historic decision has been celebrated as a recognition of the vital role NGOs play in nurturing social and economic development.

Speaking on behalf of over six NGOs on Monday, January 27, during a media briefing, Yona Wanjala, director at Civic Advisory Hub and team leader at Defenders Protection Initiative (DPI), described the amendment as a significant step forward for civil society.

“On January 23, 2025, the Parliament of Uganda took a historic step by officially approving the motion to amend schedule two (2) of the Anti-Money Laundering Act, Cap. 118. This amendment removes NGOs, churches, and other Non-Profit Organisations (NPOs) from the list of accountable persons in the fight against money laundering,” Wanjala said at DPI’s head office in Ntinda, Kampala.

He added that this marks a milestone for civil society, acknowledging their invaluable contributions to the country’s development amidst mounting regulatory challenges.

The amendment is the result of years of dedicated advocacy by DPI and the National NPO Group on the Financial Action Task Force (FATF), a collective effort that Wanjala said is deeply appreciated by the NGO community.

(L-R) Alvin Mutebi research Advocate Anti Corruption Coalition Uganda, Yona Wanjala Civic Advisor Hub Director General, Judith Atim head of programmes Centre for Constitutional Governance, Peter Magalah executive director Development Network of Indigenous Voluntary Associations (DENIVA) and Robert Kirenga Executive Director National Coalition of Human Rights Defenders Uganda addressing a press conference. (Photo by Wilfred Sanya)

The press conference was jointly organised by DPI, Civic Advisory Hub (CAH), Human Rights Awareness and Promotion Forum, the National Coalition of Human Rights Defenders Uganda (NCHRD-U), Uganda National NGO Forum, and the Development Network of Indigenous Voluntary Associations (DENIVA).

Other NGOs represented at the event included Global Rights Alert, the National Association of Professional Environmentalists (NAPE), United Religions Initiative (URI), the Anti-Corruption Coalition Uganda (ACCU), and Chapter Four.

Jordan Tumwesigye, programme manager at Global Rights Alert, emphasised the importance of maintaining compliance despite the amendment. 

“The removal of NPOs from the list of ‘accountable persons’ does not exempt them from the risks of Terrorism Financing (TF). We will work closely with regulators like the Financial Intelligence Authority (FIA) to bridge the knowledge gap and develop measures to mitigate such risks,” he stated.

Alvin Mutebi, Research and advocacy officer at ACCU, echoed this sentiment, stressing the need for vigilance. “We will continue to strengthen NPOs’ compliance levels. If we relax, we risk being added back to the schedule,” he warned.

Addressing operational challenges, DENIVA executive director Peter Magelah Gwayaka expressed frustration over the numerous compliance requirements NGOs face. “We have to comply with at least 22 different laws. Filing the same documents with multiple offices at each district is unnecessary and burdensome,” he said.

Magelah highlighted the inefficiency of submitting documents to Chief Administrative Officers (CAOs), Community Development Officers (CDOs), and sub-county chiefs, calling for a streamlined process. He also noted that the Data Protection and Privacy Act imposes additional, costly obligations on NGOs.

Judith Atim, Head of Programmes at the Center for Constitutional Governance, welcomed the amendment as a relief for the sector, which has long struggled with excessive regulatory requirements. “These compliance demands come at a huge cost,” she said.

Meanwhile, economist Eric Odongo from the Civil Society Budget Advocacy Group (CSBAG) raised concerns about the impact of U.S. President Donald Trump’s directive to freeze USAID-funded operations for 90 days, warning of significant repercussions for Ugandans dependent on these funds.

Robert Kirenga, NCHRD-U executive director, lamented that some NGOs are currently unable to access funds in their accounts due to the directive.

The collective optimism surrounding the amendment signals a new chapter for Uganda’s NGO sector, as stakeholders work to ensure compliance while continuing their invaluable work in the community.