Uganda’s Anti-Money Laundering Regulations: A Guide to Identifying Customers
In an effort to combat money laundering and terrorism financing, the Uganda government has introduced regulations that require financial institutions to conduct thorough due diligence on their customers. This guide provides an overview of the regulations and the steps financial institutions must take to identify individuals and entities accurately.
Establishing Identity of Natural Persons
For Ugandan citizens and residents, financial institutions must obtain a range of information, including:
- National identification card or alien’s identification card
- Residential address
- Telephone contact information
- Employment verification
- Tax identification number
Additionally, financial institutions may require:
- Utility bills
- Occupation or employment details
- Source of income
- Business activity location
- Written references
Establishing Identity of Foreign Nationals
When dealing with foreign nationals who are not residents in Uganda, financial institutions must obtain the following information:
- Name
- Residential address
- Date and place of birth
- Nationality
- Passport details
- Visa status
- Tax identification number
- Signature and thumb print
Financial institutions may also require verification from the individual’s bank in their country of origin or residence.
Establishing Identity of Local Entities and Other Bodies
For local entities and bodies, financial institutions must obtain information such as:
- Registered name and address
- Trade name
- Proof of registration or incorporation
- Written authorization to open an account
- Details of natural persons managing or owning the entity
- Audited financial statements
Financial institutions may also require verification from the entity’s previous bank or other reliable sources.
Establishing Identity of Foreign Entities
When dealing with foreign entities or bodies, financial institutions must obtain information such as:
- Name and registration number
- Details of registered place of business
- Proof of registration or incorporation
Financial institutions may also require verification from independent and reliable sources, taking into account the risk posed by the entity’s nature and business.
Demonstrating Due Diligence
Financial institutions are required to demonstrate that their due diligence measures are appropriate in view of the risks of money laundering and terrorism financing. This includes:
- Maintaining records of customer information
- Conducting regular reviews
- Reporting suspicious transactions to the relevant authorities
Conclusion
Uganda’s anti-money laundering regulations emphasize the importance of thorough due diligence on customers, taking into account their risk sensitivity, business relationship, product or transaction. Financial institutions must be able to demonstrate that they have implemented appropriate measures to identify individuals and entities accurately, in order to combat money laundering and terrorism financing.