Uganda’s CFT Regulations: New Guidance Issued for Tier 4 Microfinance Institutions

The Uganda Microfinance Regulatory Authority (UMRA) has released new guidance on the country’s regulations regarding Combating the Financing of Terrorism (CFT), as per Section 27 of the Anti-Money Laundering Act, 2013. This guidance provides industry-specific direction to tier 4 microfinance institutions on their legal obligations to prevent and detect money laundering and terrorism financing activities.

Background

According to the Anti-Money Laundering Act, 2013, any person conducting businesses such as: * Consumer credit * Mortgage credit * Factoring with or without recourse * Financing of commercial transactions is considered an accountable person. As such, these individuals are required to implement measures to deter and detect money laundering and terrorism financing.

New Guidance

The new guidance aims to provide clarity on the issues arising from the Anti-Money Laundering (AML) regulations and the Act itself. It explains the most common situations under which AML/CFT requirements apply and provides general information only, not intended as legal advice or a replacement for the Acts and Regulations.

Key Takeaways

• The guidance document clarifies the AML/CFT obligations of tier 4 microfinance institutions
• It provides industry-specific direction on preventing and detecting money laundering and terrorism financing activities
• The document is intended to provide general information only, not legal advice or a replacement for the Acts and Regulations

For more details on the guidance document, please see below.

Note: Please refer to the original article text for any additional information.