By Our Reporter
The Bank of Uganda has introduced new regulations requiring customers conducting transactions involving one million shillings or more to present their national identification cards (IDs). These rules, effective immediately, aim to enhance security and combat cybercrime within mobile money platforms.
In response to the rising incidents of online fraud and scams related to mobile money systems, the central bank has taken decisive action. Cybercriminals, often in collaboration with unscrupulous mobile money agents, have exploited the system for illicit purposes.
The Bank of Uganda’s statement emphasizes the need to verify customers’ identities during financial transactions exceeding one million shillings.
The directive aligns with Section 55(1)b of the National Payments Systems Act, 2020, and Regulation 7(h) of the National Payment Systems (Agents) Regulations, 2021.
According to these provisions, all authorized agent locations and operator centers handling digital financial service platforms must verify the identity of individuals completing transactions of one million shillings or more using valid national IDs.
While the requirement primarily applies to Ugandans, foreigners will need to present alternative identification documents such as passports, refugee IDs, attestation letters, or alien IDs.
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