BoU explains new rule for customers sending, withdrawing shs1m on mobile money to present national IDs

Bank of Uganda has explained the new rules that require customers carrying out transactions involving Shs1 million or more to present their national IDs .

In the rule that takes immediate, all customers making transactions above shs1 million are supposed to verify their identity.

“The Bank of Uganda observed a rise in the usage of mobile money platforms for online fraud and scams. Mobile money systems have occasionally been the target of cybercrime carried out by agents working with criminals,” BoU said in a statement on Friday.

“Therefore, in compliance with Section 55(1)b of the National Payments Systems Act, 2020 and Regulation 7 (h) of the National Payment Systems (Agents) Regulations, 2021, all financial transactions involving shs1 million  or more that are carried out at authorized agent locations and operator centers on digital financial service platforms must be completed after the holder’s identity has been verified using a valid national ID.”

The Bank of Uganda said the requirement for national IDs will be for Ugandans while foreigners will be required to present either passports, refugee IDs, attestation letters or alien IDs.

It remains to be seen whether this requirement will be adhered to by both members of the public and mobile money agents.