The Bank of Uganda has introduced a new regulation that mandates identity verification for mobile money withdrawals exceeding one million Uganda shillings (approximately $260). This directive, which came into effect on April 19, 2024, aims to curb the rising incidents of fraud associated with mobile money systems.
Key Points of the New Regulation:
• Transaction Threshold: The law applies to all digital transactions that exceed one million Uganda shillings.
• ID Verification: Individuals must present a government-issued ID to authenticate transactions at this threshold.
• Applicable IDs: For Ugandan citizens, a valid national ID card or passport is required. Foreign residents must provide a refugee ID/attestation letter or an alien ID.
• Legal Framework: The directive is in line with Section 55 (1)b of the National Payments Systems Act, 2020, and Regulation 7 (h) of the National Payment Systems (Agents) Regulations, 2021.
Impact on the Public:
The implementation of this law is expected to enhance the integrity of digital transactions by improving the reliability of identity verification processes.
However, it has also raised concerns among stakeholders who fear that the requirement could slow down business transactions and lead to an increase in the forgery of national ID cards.
What Should You Do?
If you are a resident of Uganda or a foreign national residing in the country, ensure that you have the necessary identification documents ready for transactions exceeding one million shillings. Stay informed about the latest developments and be prepared for the upcoming enrollment for the new biometric IDs.