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Banks in Uganda Must Comply with Strict Reporting Requirements

Compliance Procedures for Banks in Uganda

The Bank of Uganda has issued a regulation outlining the compliance procedures that all banks in the country must adhere to. The regulation aims to ensure that the Central Bank has access to accurate and timely financial data from banks, enabling it to carry out its roles effectively.

Key Reporting Requirements

All banks are required to submit various returns on a weekly, monthly, and quarterly basis, including:

  • Weekly Return on Liquidity: A report on liquidity position of the bank.
  • Quarterly Computation of Capital Adequacy (FORM B.S. 100A): A computation of capital adequacy for commercial banks in Uganda.
  • Quarterly Statement of Income and Expense (FORM B.S. 110): A statement of income and expense of the bank.
  • Quarterly Statement of Loans and Advances (FORM B.S. 120): A statement of loans and advances of the bank.
  • Large Exposures Report (FORM B.S. 130): A report on large exposures of the bank.

Verification of Accuracy

The Central Bank has the power to inspect banks to determine the accuracy of their returns. Banks must produce all records, books, and documents used in preparing returns upon request by the Central Bank. External auditors are also required to verify the accuracy of returns submitted by banks to the Central Bank.

Remedial Measures and Administrative Sanctions

If a bank fails to comply with the regulation, the Central Bank may impose administrative sanctions, including:

  • Prohibition from declaring and/or paying dividends: A prohibition on declaring and/or paying dividends.
  • Suspension of establishment of new branches and/or expansion into new banking or financial activities: A suspension of establishment of new branches and/or expansion into new banking or financial activities.
  • Suspension of access to the Central Bank’s credit facilities: A suspension of access to the Central Bank’s credit facilities.
  • Suspension of lending operations: A suspension of lending operations.
  • Suspension of the opening letters of credit: A suspension of the opening letters of credit.
  • Suspension of the acceptance of new deposits: A suspension of the acceptance of new deposits.
  • Suspension of the acquisition of fixed assets: A suspension of the acquisition of fixed assets.

Effective Date

The regulation is effective as of December 31, 1993.