Uganda’s Financial Institutions Ordered to Enhance Due Diligence Measures
Kampala, Uganda - The Ugandan government has issued new regulations requiring financial institutions to step up their due diligence measures when dealing with customers and clients. The move is aimed at combating money laundering and terrorism financing.
Enhanced Due Diligence Measures
According to the new regulations, financial institutions must consider the risk sensitivity of each customer or client before establishing a business relationship or concluding a transaction. This includes gathering detailed information about the individual’s identity, including:
- Residential address
- Telephone contact details
- Employment history
For natural persons who are citizens or residents of Uganda, the regulations require that they provide proof of identification, such as:
- National ID card
- Alien’s identification card
- Introductory letter from their employer or a senior government official
Foreign nationals, on the other hand, must provide documentation confirming their identity, including:
- Passport details
- Visa status
Verification of Entity Identity
The regulations also require financial institutions to verify the identity of local entities and bodies, such as companies and partnerships, by obtaining:
- Proof of registration and incorporation documents
- Information about the individuals managing or controlling the entity
In cases where it is not practicable to obtain information directly from customers and clients, financial institutions must use independent and reliable sources to verify their identity. This may include:
- Contacting the customer’s bank in their country of origin or residence
- Using publicly available information
Timeline for Implementation
The government has given financial institutions until [insert date] to implement the new measures, which will be subject to regular monitoring and supervision by regulatory authorities.
Key Takeaways
Here are some key points to keep in mind:
- Financial institutions in Uganda must enhance their due diligence measures when dealing with customers and clients.
- Customers and clients must provide detailed information about their identity and business activities.
- Financial institutions must consider the risk sensitivity of each customer or client before establishing a business relationship or concluding a transaction.
- Foreign nationals must provide documentation confirming their identity, including their passport details and visa status.
- Local entities and bodies must provide proof of registration and incorporation documents.
Regulator’s Statement
“The new regulations are aimed at ensuring that financial institutions in Uganda have robust due diligence measures in place to detect and prevent money laundering and terrorism financing,” said [Name], Director General of the Financial Intelligence Authority. “We urge all financial institutions to comply with these regulations and to continue working with us to combat these threats.”