The insurance sector introduced a tailored Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) Risk Assessment initiative to strengthen financial integrity.
The initiative, spearheaded by the Uganda Insurers Association (UIA) with technical support from Africa Risk Management and Compliance Partners, is expected to provide the industry with a clearer understanding of its exposure to financial crime while reinforcing confidence in the country’s insurance market.
Although the insurance sector is generally considered to present lower money laundering risks than the banking industry, regulators say evolving criminal tactics and international regulatory expectations make continuous risk assessment essential.
Speaking at the launch of the initiative in Kampala on June 23, 2026, the Insurance Regulatory Authority of Uganda (IRA) Acting Chief Executive Officer, Dr. Protazio Sande, said, “while the insurance sector is generally considered low risk compared to banking, international standards require us to understand our vulnerabilities and implement proportionate controls.”
He noted that emerging technologies, increasingly sophisticated financial products and growing cross-border transactions have transformed the risk environment, making robust AML/CFT frameworks indispensable for maintaining public confidence, protecting financial stability and preserving the reputation of Uganda’s insurance industry.
He explained that the sectoral assessment will identify money laundering and terrorist financing risks unique to the insurance industry, highlight existing vulnerabilities and guide the development of proportionate mitigation measures to strengthen compliance across the market.
The Project Lead at Africa Risk Management and Compliance Partners who are executing this project, Mr. Sydney Asubo, clarified that the sectoral assessment is intended to complement, but not replace the internal risk assessments already undertaken by individual insurance companies.
He explained that the study will focus specifically on insurance and reinsurance companies and will generate industry-wide insights that will be shared with the UIAbefore being submitted to the regulator.
According to Mr. Asubo, Uganda’s 2023 National Risk Assessment classified the insurance sector as presenting a medium vulnerability to money laundering. He described this rating as positive because it reflects the sector’s relatively strong control environment, comprehensive AML framework and sound internal compliance policies.
He assured participating companies that all information collected during the exercise will be used strictly for purposes of the sectoral risk assessment and handled with the highest levels of confidentiality.
Dr. Sande reaffirmed the Authority’s commitment to creating a regulatory environment that supports both compliance and innovation, noting that effective AML/CFT implementation is a shared responsibility requiring collaboration among regulators, insurers, intermediaries and other key stakeholders.