Regulatory Alerts2025-01-01
Microfinance Deposit-Taking Institutions (Agent Banking) Regulations, 2025
Issued by the Bank of Uganda under the Microfinance Deposit-Taking Institutions Act, these regulations establish a comprehensive framework for licensed microfinance institutions to conduct agent banking services through contracted third-party entities. The rules mandate written regulatory approval, strict agent eligibility criteria including licensed business status and real-time technological infrastructure, and clear principal-agent agreements that define permissible services like cash deposits and bill payments while prohibiting unauthorized lending or fee-charging. Ongoing supervision requires monthly reporting, adherence to anti-money laundering limits and consumer protection standards such as two-factor authentication and transparent signage, with the Bank of Uganda empowered to impose administrative sanctions or terminate non-compliant agency agreements.