Uganda Implements New ID Requirement for Large Mobile Money Transactions | USAEMALL.com

Kampala, Uganda — Mobile cash brokers in Uganda at the moment are required to confirm the id of consumers transacting quantities over UGX 1 million, as a part of new rules enforced by the Bank of Uganda.

This directive goals to fight the growing incidents of on-line fraud and scams related to cellular cash platforms in a bid to make digital banking and cost techniques safer within the nation following a surge in on-line fraud.

This was revealed within the early morning hours this friday by a neighborhood Television via its X (previously Twitter) deal with asking for the ideas on the brand new enforcement that may see each Mobile Money agent require a buyer to current a National Identity card issued by NIRA.

The Bank of Uganda Confirmed the brand new measure on social media, stating that the rise in cellular money-related cybercrimes necessitated stricter controls.

The directive is aligned with Section 55(1)b of the National Payments Systems Act, 2020, and Regulation 7 (h) of the National Payment Systems (Agents) Regulations, 2021.

Under these rules, all high-value transactions ( UGx 1,000,000 upwards ) at approved agent places and operator centres on digital monetary service platforms should be performed solely after verifying the shopper’s id utilizing a sound type of identification.

Acceptable types of ID embody a nationwide ID for Ugandan residents, a passport, a refugee ID or attestation letter, or an alien ID for foreigners.

The transfer is designed to boost the safety of digital monetary companies and defend customers from potential fraud by guaranteeing that every one transactions are traceable to verified people. The requirement for id verification at increased transaction thresholds is predicted to discourage the misuse of cellular cash companies by unscrupulous people and networks of criminals.

This regulatory replace follows a number of experiences of elevated fraudulent actions the place cellular cash techniques have been exploited by brokers collaborating with criminals. By implementing id verification, the Bank of Uganda goals to curb these illicit actions and strengthen the general integrity of the cellular cash ecosystem within the nation.

The implementation of this directive is instant, and cellular cash brokers throughout Uganda are required to adjust to the brand new identification necessities to proceed working legally. This measure is a part of broader efforts by Ugandan authorities to control and safe digital monetary transactions in a quickly evolving digital panorama.