Uganda Securities Exchange Tightens Know Your Customer (KYC) Policies

In an effort to combat financial crimes and enhance regulatory compliance, the Uganda Securities Exchange (USE) has issued new guidelines for account opening requirements for its members.

Revised KYC Policies Come into Effect

The revised Know Your Customer (KYC) policies came into effect on June 5th, 2018. These policies require all individuals and entities seeking to open accounts with the USE to provide a range of identification documents and business information.

Requirements for Account Opening

Individuals

• Local Individuals:
  • Three colored passport photos
  • Identification documents (national ID or passport)
  • Fully filled and executed Form 1A
  • Summary of business activities
  • Disclosure of risk appetite
• East African Nationals: Certified copies of passports
• Foreign Individuals: Certified copies of passports, along with other documentation

Minors

• Parents or guardians must provide:
  • Identification documents
  • Proof of age
  • Details of business activities

Companies

• Limited Companies:
  • Certified incorporation certificates
  • Trade names under which they operate
  • Articles and memoranda of association
  • Board resolutions indicating account opening with the USE
  • Identification documents for signatories
• Foreign Companies: Notarized copies of incorporation certificates

Clubs, Associations, and Committees (not set up by government)

• Registered proof
• Constitutions or memoranda of understanding
• Identity documents for proposed signatories

Partnerships

• Registered partnership deeds
• Certificate of registration
• Authorized signatory lists
• Identification documents
• Mandates from partnerships authorizing account opening with the USE

Sole Proprietorships

• Certified registration certificates
• Declarations of terms
• Proof of identity of proposed signatories

Estate Accounts

• Letters of administration or probate
• Wills (if applicable)
• Identification documents for proposed signatories

Non-Compliance May Result in Default Membership Obligations and Account Rejection

The USE has emphasized that failure to comply with these requirements may result in default membership obligations and the potential rejection of non-compliant accounts.

In a statement, the Exchange noted that while these are general requirements, specific cases may necessitate additional KYC documentation. The revised policies aim to enhance regulatory compliance and protect against financial crimes.