The Bank Of Uganda (BoU) has issued a directive for the ID verification of all digital transactions that are above one million Uganda shillings ($260).
All users who send at the limit or above will be required to present a government-issued ID card to complete the transaction.
Details
On Aril 19, 2024, the BoU issued this directive through its X account following a surge in digital payments fraud.
“Mobile money systems have occasionally been the target of cybercrime carried out by agents working with criminals,” a part of the message reads.
Digging Deeper
The BoU said 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 Ugx. 1,000,000 [$260] 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.
The verification, the BoU mentioned, has to be done using a valid national ID card or a passport for Ugandans, a refugee ID/attestation letter, or an alien ID for foreigners living in the East African country.
Push Back
Some say the move will bring about several challenges and slow down business given that many citizens in the country do not have ID cards.
Other experts say the directive could lead to “a risk of forgery with national ID cards.”
Zoom Out
Uganda is planning to begin mass citizen enrollment for new-generation biometric national ID cards in June.
Source: Biometric Update
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