Africa-Press – Uganda. The Bank of Uganda has said it could take legal action against mobile money operators who do not heed the directive that requires them to ask for valid identification documents of individuals who make transactions of Shs1 million and above.
The directive was expected to take effect on April 19, but a survey conducted by Nation Media Group – Uganda in Kampala on Monday found that the majority of the mobile money agents are not enforcing it.
However, telecom giants MTN Uganda and Airtel Uganda have sent messages to their customers regarding the directive from the Central Bank.
The directive compels Ugandans to present National IDs while foreigners are expected to present their passports. Refugees are expected to produce their identification cards or attestation letters.
Mr Andrew Kawere, the deputy director of the National Payment Systems Department at the central bank’s finance directorate, said the directive is geared towards curbing cyber-crimes that have compromised mobile money systems.
“Digital payments have increased significantly. Sixty-four percent of Ugandans today are processing payments digitally. Identification may look like a big challenge, but it is good for the bigger good of the financial sector,” he said.
The directive is provided for in the National Payments Systems Act of 2020 and according to Mr Kawere, Bank of Uganda has held talks with licensed mobile money operators.
“We do understand that in the initial implementation, there will be a bit of friction, but there is a plan to move towards biometric verification in the medium term. This is being worked on between the Bank of Uganda and the mobile money operators,” he said.
Mr David Birungi, the public relations manager at Airtel Uganda, told NTV, a sister company of this publication, that the implementation process is on.
“That is a huge change. It requires implementation of biometrics where we can and in other cases to print books where people will leave their national identification numbers and sign, having identified themselves and showed an original national ID,” he said.
“I would not expect that this implementation is going to instantly cover every person, but the journey is on. We have distributed the books and we are complying,” he added.
On their part, MTN Uganda said they will work with the agents to comply and effect the instruction to achieve the wider safety and financial inclusion objectives for the nation.
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