In response to a surge in mobile money-related fraud, the Bank of Uganda has instituted new regulations necessitating customers conducting transactions of Shs1 million or more to present their national IDs. Effective immediately, all financial transactions meeting this threshold must undergo identity verification.
The decision, outlined in compliance with the National Payments Systems Act of 2020 and the National Payment Systems (Agents) Regulations of 2021, aims to combat cybercrime facilitated through mobile money platforms. BoU emphasized the importance of securing transactions amid reports of fraudulent activities perpetrated by cybercriminals and their associates.
According to the directive, Ugandan nationals must present valid national IDs, while foreigners have the option to provide passports, refugee IDs, attestation letters, or alien IDs for verification.
The implementation of these measures hinges on widespread adherence by both the public and mobile money agents. As these regulations take effect, their impact on financial transactions and security practices will be closely monitored.
