Financial Crime World

Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) Regulations

Establishing Identity in Business Relationships and Transactions

The following regulations outline procedures for verifying the identity of individuals, entities, and bodies when entering into business relationships or transactions.

Establishing Identity

When establishing the identity of an individual or entity, accountable persons must follow specific guidelines to ensure proper identification.

  • Fingerprints: Fingerprints are taken in accordance with specific guidelines.
  • Foreign Nationals: Information is obtained from foreign nationals, including:
    • Name
    • Address
    • Date and place of birth
    • Nationality
    • Passport details
    • Visa status
    • Tax identification number (if applicable)
    • Signature and fingerprint

Identity Verification

Accountable persons must verify the information provided by individuals or entities using independent sources.

  • Independent Verification: Accountable persons are required to use independent verification methods.
  • Confirmation from Authorities: Information is confirmed with relevant authorities, such as:
    • Uganda Citizenship and Immigration Control Board
    • Individual’s bank in their country of origin or residence
  • Alternative Sources: If it’s not possible to contact the individual’s bank or other independent sources, accountable persons use alternative information while considering the risk posed by the jurisdiction, nature of business, and products/services offered.

Establishing Identity of Local Entities

When establishing the identity of local entities or bodies, accountable persons must require specific information, including:

  • Registered Name and Address: The registered name and address of the entity
  • Trade Name: The trade name of the entity (if applicable)
  • Proof of Registration: Proof of registration with the relevant authorities
  • Certified Copy of Written Authorization: A certified copy of written authorization from the entity’s management or controlling body
  • Names of Managing, Controlling, or Owning Natural Persons: The names and details of managing, controlling, or owning natural persons
  • Audited Financial Statements (if applicable): Audited financial statements for the previous year
  • Un-audited Financial Statements (if applicable): Un-audited financial statements for the current year
  • Tax Identification Number (if applicable): The tax identification number of the entity
  • Confirmation from Previous Banks (if any): Confirmation from previous banks that the entity has been known to them

Establishing Identity of Foreign Entities

When establishing the identity of foreign entities or bodies, accountable persons must require information similar to that required for local entities, including:

  • Name and Registration Number: The name and registration number of the entity
  • Details of Registered Place of Business in Their Country of Origin or Residence: Details of the registered place of business in their country of origin or residence

The regulations emphasize the importance of verifying identity using independent sources and considering the risk posed by jurisdictions, businesses, and products/services offered. This is a critical aspect of AML/CFT efforts to prevent financial crimes and protect global financial systems.