Financial Crime World

Financial Sector Takes Leap Forward with New e-KYC Policies in Uganda

Transparency and Security in Financial Services Delivery

Kampala, January 17, 2020 - The Bank of Uganda has launched a new initiative aimed at simplifying and standardizing Know Your Customer (KYC) policies across the financial sector. This move is part of efforts to reduce fraud and impersonation in the financial sector.

Background

The absence of a flexible, timely, and cost-effective means of verifying the identity of consumers of financial services has been a major constraint to financial inclusion and credit growth in Uganda. To address this challenge, the Bank of Uganda has partnered with key stakeholders to establish an electronic platform for real-time verification of customer information.

Key Features of e-KYC

  • Centralized Application Programming Interface: Financial institutions will be able to easily verify the identities of their customers using a centralized interface.
  • Robust KYC Practices: Banks and other financial institutions are expected to embed robust KYC practices, processes, and customer due diligence procedures in their operations.
  • Real-time Verification: The electronic platform will enable real-time verification of customer information.

Benefits

  • Enhanced Transparency and Security: The e-KYC policies are set to significantly enhance transparency and security in financial services delivery.
  • Easier Access to Credit: Consumers will find it easier to access credit and other financial products.
  • Robust KYC Practices: Financial institutions will have robust KYC practices in place.

Collaboration and Support

The e-KYC project has been made possible through the collaboration of key stakeholders, including:

  • Bank of Uganda
  • National Identification Registration Authority (NIRA)
  • National Information Technology Authority
  • Supervised financial institutions

Financial Sector Deepening Uganda and the Uganda Bankers Association have pledged continued support for the initiative. The e-KYC policies are set to revolutionize the way financial services are delivered in Uganda, making it easier for consumers to access credit and other financial products while ensuring that banks and other financial institutions have robust KYC practices in place.

Conclusion

The launch of the new e-KYC policies is a major step forward in efforts to digitize financial services and provide a secure and transparent environment for all stakeholders. The project has received significant investment, and implementation is set to progress with the support of key stakeholders.