UDB Committed to Combating Terrorist Financing

The United Nations has defined terrorist financing as providing or collecting funds with the intention that they should be used or in the knowledge that they are to be used, in full or in part, to carry out acts of terrorism. In light of this definition, Uganda Development Bank (UDB) is committed to combating terrorist financing by adhering to its compliance framework and Know Your Customer procedures.

Reporting Terrorist Financing

As a responsible financial institution, UDB will report any suspicious transactions to the Financial Intelligence Authority (FIA). If we suspect that a customer is involved in terrorist financing activities, we will:

• Terminate our relationship with them
• File a report with the FIA

This includes cases where we have reasonable suspicion of a customer being involved in such activities.

Reviewing Trade Transactions

UDB reviews trade transactions on an individual basis to detect fraud, sanctions, and suspicious activities. We examine transactions for documented conditions that conform to international standard banking practice and what is known about our customers.

Automated and Manual Controls

We use a combination of automated (World Check) and manual controls in the context of Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF). This includes:

• Screening names against World Check for any potential matches
• Applying rules under Suspicious Transactions if there are any matches

Suspicious Transaction Reporting

A suspicious transaction is defined as a financial transaction that appears unusual or serves no financial, business, or legal purpose. If our Money Laundering Reporting Officer deems that there is enough evidence to consider a transaction as part of an activity related to money laundering, terrorism financing, or fraud, we will file a report with the FIA.

Staff Training

UDB believes that creating a culture of compliance and control among its staff is key to combating money laundering and terrorist financing. We require all our staff to undergo training on our internal procedures for preventing money laundering and terrorism financing.

Record Keeping

We keep certain information and documentation for at least 10 years, including:

• Documentation obtained during Know Your Customer (KYC) and Due Diligence procedures
• Original documentation or certified copies of transactions carried out through the UDB platform
• Reports of Suspicious Transactions issued

By following these guidelines, UDB is committed to preventing money laundering and terrorist financing activities in our operations.