Financial Crime World

Title: New Regulatory Push in Uganda: Large Cash Transactions Reporting Requirements and Mobile Money Transactions Identification

Uganda’s Regulatory Efforts after FATF Grey List Removal

Following Uganda’s successful removal from the Financial Action Task Force (FATF) grey list, the country is focusing on enforcing and implementing guidelines to prevent money laundering and terrorist financing. Two key authorities, the Financial Intelligence Authority (FIA) and the Uganda Telecom Regulatory Authority (UTRA), have issued new rules to strengthen the financial system.

FIA’s Guidelines for Large Cash Transactions Reporting

In accordance with Section 8 of Uganda’s Anti-Money Laundering Act, 2013, the FIA has introduced reporting requirements for large cash transactions. The following entities and individuals are affected:

  1. Commercial banks
  2. Credit institutions
  3. Microfinance deposit-taking institutions (MDIs)
  4. Insurance companies
  5. Forex bureaus / money remitters
  6. Lawyers
  7. Accountants
  8. Real estate agents
  9. Churches and religious organizations
  10. Non-governmental organizations (NGOs)
  11. Dealers in precious metals and stones
  12. Casinos and gaming houses

Accountable persons are required to record and file large cash transactions above UGX 20,000,000 (1,000 currency points) with the FIA. Notifications of any changes to reporting officers must result in weekly reports, which should be filed using provided forms in an electronic format by 5:00 pm every Tuesday.

Key forms:

  1. Form A for commercial banks, credit institutions, MDIs, insurance companies, and forex bureaus/money remitters

Importance of Reporting Large Cash Transactions

These regulations serve a significant purpose in ensuring the misuse of the financial system and encouraging transparency and accountability. The FIA indicates that reporting large cash transactions considerably assists in identifying and investigating suspicious activities potentially linked to money laundering or terrorist financing.

UTRA’s Directive: Identification for Mobile Money Transactions over UGX 1 Million

UTRA has issued a directive targeting mobile money users who must present valid identification prior to transactions worth more than UGX 1 million. This objective parallels the FIA guidelines, focusing on preventing the misuse of mobile money services for illicit activities.

Key differences:

  1. FIA’s guidelines cover a wider range of accountable persons, whereas the UTRA directive centers specifically on mobile money transactions.

Fortifying Uganda’s Financial System

These twin regulatory actions are essential in the fight against financial crimes. Uganda is taking strides to secure its financial system’s integrity and uphold international regulatory standards by:

  1. Enforcing reporting requirements for large cash transactions.
  2. Regulating mobile money usage through identification.