Summary:

• Uganda Bankers’ Association introduces measures to combat fraud, including blacklisting convicted fraudsters from financial institutions. Guidelines aim to enhance collaboration, accelerate investigations, and reinforce fraud prevention measures.

The Uganda Bankers’ Association has introduced measures to combat fraud in the country’s financial sector. One key recommendation is the blacklisting of customers, staff, and collaborators convicted of fraud by all commercial banks.

Sarah Arapta, the Association’s chairperson, unveiled the Banking Industry Guidelines on Mitigation of Fraud (BIGF) in Kampala. She emphasized the need to address fraud as a significant threat to financial services and the broader economy.

Arapta defended the proposal to exclude individuals and companies convicted of fraud from Uganda’s financial institutions, citing the severe challenges fraud poses to stability, credibility, and public trust in the economy.

Michael Atingi-Ego, Deputy Governor of the Bank of Uganda, welcomed the guidelines and urged stakeholders in the banking sector to ensure effective implementation. He emphasized the importance of upholding the integrity of Uganda’s banking sector.

The Association specified that inclusion in the blacklist is contingent upon confirmation that an individual or company actively facilitated or supported a cybercrime impacting a member of the Banking Industry Guidelines on Mitigation of Fraud (BIGF). This confirmation is based on validated reports or data obtained from Ugandan courts of law.

The Uganda Bankers’ Association highlighted that the newly introduced guidelines aim to foster collaboration, accelerate investigations, and promote a proactive stance against fraud. These guidelines also seek to reinforce fraud prevention measures within financial institutions by offering guidance on various aspects, including risk assessment and fraud detection.