Financial Crime World

Uganda’s Financial Regulators Emphasize Importance of Due Diligence Measures

Kampala, Uganda - Strengthening Efforts Against Money Laundering and Terrorism Financing

In a bid to strengthen efforts against money laundering and terrorism financing, Uganda’s financial regulators have reiterated the need for due diligence measures to ensure the accuracy and reliability of customer identification information.

Due Diligence Measures: A Critical Step in Preventing Illicit Activities

According to the country’s Anti-Money Laundering Regulations, accountable persons are required to establish and verify the identity of their customers, including:

  • Natural persons
  • Foreign nationals
  • Local entities
  • Other bodies

The regulations emphasize the importance of obtaining sufficient information from customers to determine whether they are who they claim to be and whether their transactions are suspicious.

Measures for Establishing and Verifying Customer Identity

Accountable persons must take the following measures:

  • Obtain identification documents
  • Verify residential addresses
  • Confirm business relationships
  • Obtain information about:
    • Occupation
    • Source of income
    • Nature of business activities

For foreign nationals, accountable persons must also obtain:

  • Date and place of birth
  • Nationality
  • Passport details
  • Visa status
  • Tax identification number

Verification Process: Independent Confirmation Required

Accountable persons are required to verify this information independently by contacting relevant authorities or requesting confirmation from other independent sources.

Non-Compliance: Severe Consequences

Non-compliance with the due diligence measures outlined in the regulations can result in severe penalties, including:

  • Fines
  • Revocation of licenses

“We will not hesitate to take action against any institution that fails to comply with our regulations,” said a spokesperson for the regulatory body.

Collaboration with International Organizations

Uganda’s financial regulators have been working closely with international organizations, including the Financial Action Task Force (FATF), to strengthen its anti-money laundering and combating the financing of terrorism (AML/CFT) regime. The country is expected to undergo a review by the FATF in the coming months.

Conclusion

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In conclusion, Uganda’s financial regulators are emphasizing the importance of due diligence measures to prevent money laundering and terrorism financing. Accountable persons must ensure that they comply with the regulations outlined above to avoid severe penalties.