Financial Crime World

Anti-Money Laundering (AML) and Know-Your-Customer (KYC) Guidelines for Financial Institutions in Uganda

Introduction

This document outlines the anti-money laundering (AML) and know-your-customer (KYC) guidelines for financial institutions in Uganda. The guidelines aim to prevent financial institutions from being used as conduits for illicit activities, such as money laundering and terrorist financing.

Identification Requirements

For individual customers, the following identification documents are required:

  • Passport: A valid passport is required for foreign nationals.
  • National ID Card: A national ID card or a residence permit is required for Ugandan citizens.
  • Driver’s License: A driver’s license may be accepted as an alternative to a national ID card.
  • Birth Certificate: A birth certificate may be accepted as proof of identity.

The account opening form should also capture the following details:

  • Address: The customer’s address, both residential and business.
  • Occupation: The customer’s occupation or profession.
  • Date of Birth: The customer’s date of birth.
  • Marital Status: The customer’s marital status.
  • Signature: The customer’s signature.

Verification Process

Once the identification documents are obtained, they need to be verified by checking with relevant authorities (e.g., passport office, tax department) to ensure that the information provided is accurate and up-to-date.

Account Opening Form

The account opening form should include details of all individuals who will have access to the account, including:

  • Directors: The names and addresses of directors.
  • Signatories: The names and signatures of signatories.
  • Beneficial Owners: The names and addresses of beneficial owners.

Each individual will need to provide their identification documents for verification.

Verification Thresholds

Depending on the nature of the customer (e.g., high-risk countries), additional documentation may be required, such as:

  • Certificate of Incorporation: A certificate of incorporation or registration.
  • Proof of Residence: Proof of residence in Uganda.

For legal entities, the following details are required:

  • Company Registration Number: The company registration number.
  • Business Address: The business address of the entity.
  • Name of Entity: The name of the entity.

The account opening form should also capture information about directors, shareholders, and beneficial owners.

Beneficial Ownership

The document emphasizes the importance of identifying the beneficial owner(s) of a legal entity. This includes individuals who own or control more than 25% of the shares or voting rights in the entity.

Due Diligence on Third Parties

If a customer is acting as an agent for another party, the financial institution must perform due diligence on that third party to ensure compliance with AML regulations.