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Uganda’s FIA Cracks Down on Money Laundering and Terrorist Financing

In a bid to combat money laundering and terrorist financing, Uganda’s Financial Intelligence Authority (FIA) has intensified its supervisory powers over banks, mandating them to comply with Anti-Money Laundering Act (AMLA) regulations.

Compliance Requirements for Banks

  • Register as accountable persons with the FIA
  • Identify customers using their true names and verify their identity information through due diligence measures
  • Implement risk assessment measures to detect and monitor suspicious transactions
  • Maintain records for at least 10 years
  • Report any cash or monetary transactions exceeding UGX20 million

Prevention of Misuse by Politically Exposed Persons (PEPs)

  • Obtain written approval from senior management before establishing a business relationship with PEPs
  • Conduct constant monitoring of these relationships and report suspicious transactions to the FIA

Additional Requirements for Banks

  • Conduct periodic anti-money laundering audits
  • Submit timely risk assessment reports, AML compliance reports, product risk assessment reports, suspicious transaction reports, and AML audit reports to the FIA

Depositor Protection Regime

The Financial Institutions Act establishes a Deposit Protection Fund, which acts as a deposit insurance scheme for customers of licensed financial institutions. The fund is managed by the Deposit Protection Fund Board.

  • Every customer deposit in a financial institution is protected up to UGX10 million (approximately USD2,643.04)
  • Upon closure of a financial institution, customers can lodge claims with the board for payment of protected deposits

Bank Secrecy

Under Ugandan law, confidentiality is a fundamental aspect of the banker-customer relationship.

  • Banks owe their customers a duty of confidentiality, which may only be overridden in four instances:
    • When disclosure is compelled by law
    • There is a public interest in disclosing the information
    • The interests of the bank require it
    • If the customer has consented to disclosure

Contact Us

For more information on the FIA’s AMLA regulations or to report suspicious transactions, please contact:

Financial Intelligence Authority Plot 15-17 Kampala Road P.O. Box 7400 Kampala, Uganda Phone: +256 414 233 333 Email: info@fia.go.ug