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Uganda’s Financial Regulator Issues Guidelines on Due Diligence Measures to Combat Money Laundering and Terrorism Financing
Kampala, Uganda - The Financial Intelligence Authority (FIA) has issued new guidelines requiring financial institutions to conduct thorough due diligence measures to identify and verify the identity of their customers in order to prevent money laundering and terrorism financing.
Guidelines for Due Diligence Measures
According to the guidelines, accountable persons such as banks and other financial institutions are required to determine the extent of due diligence measures to apply to a person or customer based on the risk sensitivity of the person or customer, business relationship, product or transaction. They must also be able to demonstrate to their supervisory authority that the extent of due diligence measures is appropriate in view of the risks of money laundering and terrorism financing.
Procedures for Establishing Identity
The guidelines provide detailed procedures for establishing the identity of:
- Natural Persons: Citizens or residents of Uganda must produce a national identification card or an alien’s identification card, as well as provide details such as residential address, telephone contact, and employment information.
- Foreign Nationals: Must provide their name, date of birth, nationality, passport details, visa status, and tax identification number. Accountable persons are also required to independently verify the particulars and details submitted by foreign nationals by requesting confirmation from authorities such as the Uganda Citizenship and Immigration Control Board or the individual’s bank in their country of origin.
- Local Entities and Other Bodies: Must provide information such as registered name and address, trade name, proof of registration or incorporation, and certified copy of written authorisation permitting them to open an account or transact business with the accountable person. The guidelines also require verification of this information by comparing it with records held by relevant authorities and independently verifying the details with regard to directors, senior management, shareholders, partners or other persons who purport to be authorised to establish a business relationship or enter into a transaction.
Importance of Guidelines
The FIA has emphasized that these guidelines are essential in preventing the misuse of financial institutions for money laundering and terrorism financing. “These measures will help to ensure that our financial system is not exploited by criminals,” said an FIA official. “We urge all accountable persons to comply with these guidelines and report any suspicious transactions or activities to us.”
Effective Date and Non-Compliance
The new guidelines come into effect immediately, and accountable persons are required to implement them forthwith. The FIA has also warned of severe penalties for non-compliance, including fines and criminal prosecution.
Contact Information
Financial Intelligence Authority (FIA) Phone: +256 414 595000 Email: info@fia.go.ug