Regulatory Alerts2018-01-01
Financial Institutions (Islamic Banking) Regulations, 2018
The Bank of Uganda issued the Financial Institutions (Islamic Banking) Regulations, 2018 to establish a comprehensive regulatory framework for Islamic financial business and institutions operating through Islamic windows. The regulations mandate specific licensing procedures, define three distinct deposit account types with clear profit-sharing and loss-bearing mechanisms, and require institutions to maintain capital adequacy, liquidity standards, and robust Shari’ah Advisory Boards. Furthermore, the Central Bank oversees Shari’ah compliance through periodic audits and a Central Shari’ah Advisory Council, while retaining the authority to impose administrative sanctions or suspend licences for non-compliance.
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