Know Your Customer (KYC) and Anti-Money Laundering (AML) Requirements in Uganda

Understanding KYC and AML Obligations in Uganda

As a business operating in Uganda, it is essential to understand the Know Your Customer (KYC) and Anti-Money Laundering (AML) requirements set forth by regulatory bodies. The following guide outlines the key points to consider:

Verification Requirements

• Businesses must verify their customers’ identities through documentation such as national ID cards or passports.
• This verification process is not a one-time requirement, but rather an ongoing process that must be repeated in multiple instances.

Multiple Instances of Verification

• Identity verification is required for:
  • Onboarding new customers
  • Transactions exceeding certain monetary thresholds

Politically Exposed Persons (PEPs) and Enhanced Due Diligence (EDD)

• Businesses must determine if their customers are PEPs or exhibit higher risk profiles.
• If a customer is identified as a PEP or exhibits higher risks, enhanced due diligence measures must be taken to mitigate these risks.

Reliance on External Services

• Businesses may seek the services of third-party providers, such as Shufti Pro, to apply measures of due diligence.
• However, businesses remain liable for maintaining compliance and fulfilling AML and KYC obligations.

Record Retention

• Businesses must retain data for not less than ten years as part of their AML and KYC obligations.

Benefits of Relying on External Services

Relying on external services, such as Shufti Pro’s AML Screening service, can help businesses comply with these regulations by:

• Reducing the complexity of due diligence processes
• Improving the accuracy of risk assessments
• Enhancing overall compliance and risk management