Regulatory Alerts2005-01-01
Financial Institutions (Ownership and Control) Regulations, 2005
Issued by the Bank of Uganda under the Financial Institutions Act, 2004, these regulations cap individual and corporate shareholding in Ugandan financial institutions at 49 percent while requiring central bank approval for any acquisition or transfer of five percent or more. The framework mandates accurate beneficial ownership registers, standardized application procedures for significant share transfers, and strict fit-and-proper testing for substantial shareholders. Additionally, the Central Bank retains enforcement authority to impose remedial shareholding reductions and administrative sanctions, such as credit suspensions and director removals, to safeguard depositor interests and institutional stability.
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