Regulatory Alerts2022-01-01
Micro Finance Deposit-Taking Institutions (Amendment of Second Schedule) Instrument 2022
Issued by the Ugandan Minister for Finance under the Micro Finance Deposit-Taking Institutions Act 2003, this Instrument replaces the Second Schedule to establish comprehensive criteria and procedures for determining whether individuals are fit and proper persons. The amended schedule mandates that micro finance deposit-taking institutions conduct risk-based due diligence and annual evaluations on substantial shareholders, directors, executive managers, and chief executives to verify their probity, competence, financial soundness, and past conduct before Central Bank approval. The Central Bank retains discretionary authority to approve, request additional information, conduct interviews, or withdraw approvals based on holistic assessments of nominees' professional references, regulatory history, and ongoing compliance.