Regulatory Alerts2022-01-01
Financial Institutions (Amendment of Third Schedule) Instrument 2022
The Minister for Finance, acting through the Central Bank of Uganda, has amended the Third Schedule to establish comprehensive criteria and procedures for determining whether individuals and corporate entities are fit and proper to manage, control, serve as directors, or hold substantial shareholdings in financial institutions. Financial institutions must conduct risk-based due diligence, verify supporting documentation, and obtain Central Bank approval prior to appointment while maintaining ongoing assessments of probity, competence, and financial soundness. The Central Bank retains discretionary authority to vet nominees through interviews or cross-jurisdictional checks and may withdraw approval if a person no longer meets the established standards.