Museveni warns: Financial crimes threaten security

President Yoweri Museveni has called for stronger collaboration among law enforcement agencies and greater adherence to international financial standards in the fight against financial crimes.

He made the remarks during the 49th Task Force of Senior Officials’ Meetings of the Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG), held last week.

Citing statistics from the United Nations Office on Drugs and Crime (UNODC), Museveni noted that Africa loses an estimated $88.6 billion annually, or 3.7 percent of its GDP, due to illicit financial flows such as trade misinvoicing, tax evasion and corruption.

FINANCIAL CRIMES AS NATIONAL SECURITY THREATS

The president emphasized that financial crimes such as money laundering, terrorism financing, and the proliferation of weapons of mass destruction pose significant threats beyond the financial sector.

“If left unchecked, these illicit activities can undermine trust in financial systems, discourage investment, and support criminal networks that destabilize our societies,” Museveni said.

“Financial crimes are not confined within national borders. They demand both regional and global collaboration, as criminal networks exploit weaknesses in financial systems to move illicit funds across borders—undermining economic growth, fueling corruption and financing terrorism.”

RECOGNIZING GLOBAL EFFORTS

President Museveni commended the Financial Action Task Force (FATF) and ESAAMLG for their work in strengthening Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) measures across the region.

However, he cautioned that criminal actors are continuously adapting their strategies to evade enforcement mechanisms. He warned that terrorist and organized criminal groups continue to finance their operations through illegal trade, drug trafficking, and by taking advantage of weak regulatory systems.

He stressed the urgent need to enhance compliance with FATF standards and deepen collaboration between regulatory and law enforcement institutions.

DIGITALIZATION AND NEW THREATS

Museveni also highlighted the increasing risks associated with digital platforms in Sub-Saharan Africa, stating that online spaces are now being used by terrorist groups to recruit, radicalize, and fundraise.

“Rapid digitalization has created new vulnerabilities and complexities for counter-terrorism and financial oversight,” he noted.

UGANDA’S NATIONAL RESPONSE

The president affirmed that Uganda has made progress in combating financial crimes through:

• Strengthening legal and regulatory frameworks
• Establishing and reinforcing relevant institutions
• Enhancing intelligence sharing and international cooperation

Despite these efforts, Museveni reiterated that no country can address financial crimes in isolation, calling for stronger regional and global partnerships to protect the integrity of financial systems.

GGOOBI ECHOES CALL FOR ACTION

Ramathan Ggoobi, permanent secretary and secretary to the Treasury, supported the president’s position, noting the increasing sophistication and scope of financial crimes.

“The challenges we face in combating financial crimes are growing in complexity and scale,” Ggoobi said.

“The misuse of emerging technologies, the cross-border nature of illicit financial flows, and lingering vulnerabilities in our AML/CFT frameworks call for a more unified, strategic, and adaptive response.”

Ggoobi also emphasized the need for increased vigilance in tackling emerging threats, including:

• Virtual assets and service providers (VASPs)
• Environmental crimes
• Illicit trade

He underscored the importance of ongoing innovation in regulatory approaches to stay ahead of evolving financial crime tactics.