TABLE OF CONTENTS
DEC LARA TION .............................................................................................................................. i
ACKNOWLEDGMENTS .............................................................................................................. iii
LIST OF LEGISLATIONS ............................................................................................................ iv
CHAPTER ONE ............................................................................................................................ I
! :I Introduction ............................................................................................................................... I
I :2 Background of the study ........................................................................................................... I
I :3 Statement of the problem .......................................................................................................... 4
I :4 Purpose of the study .................................................................................................................. 5
I :5 Objectives of the study .............................................................................................................. 5
I :6 Research questions .................................................................................................................... 5
I :7 Significance of the study ........................................................................................................... 5
I :8 Scope of the study ..................................................................................................................... 6
I :9 Limitation of the study .............................................................................................................. 6
!.1 0 ivlethodology ........................................................................................................................... 6
CHAPTER TWO ........................................................................................................................... 7
LITERATllRE REVIEW ................................................................................................................ 7
2.0 Illit'l,dt!dion ............................................................................................................................... 7
2.2 The Regulatory Framework ....................................................................................................... 7
2.3 Micro Finance Deposit Taking Institutions (MDI) Act (2003) ............................................... ! 0
2.-+ The financial institutions Act and the MDI Act (2003) .......................................................... !!
2.:i Anti money laundering (Anti money laundering Act 2013) ................................................... I J
2.6 Impact of the Act ..................................................................................................................... 14
2. 7 The Financial Intelligence Authority (FIA) ............................................................................ 15
:~.8 Orders under the Act. .............................................................................................................. 15
2. 'l International cooperation ......................................................................................................... 16
2.10 01Tenccs under the Act. ......................................................................................................... !6
2.1 i Mobile money Guidelines 2013 ............................................................................................ 18
v
CHAPTER THREE: ................................................................................................................... 21
3: I Reforms under the financial institutions Act of Uganda ......................................................... 21
3.2 International bodies that oversee Shariah finance ................................................................... 3 I
CHAPTER FOUR ....................................................................................................................... 34
4.0 Challengesunder the new reforms and recommendations ....................................................... 34
4.1 Islamic banking ....................................................................................................................... 34
4.1.1 Recommendations ................................................................................................................. 3 5
4.2 Challenges associated with agency banking ............................................................................ 36
"U.!Recommendations for agent banking .................................................................................... 37
4.3 Bancasurance ........................................................................................................................... 39
CHAPTER FIV£ ......................................................................................................................... 42
5.1 Cunclusions ............................................................................................................................. 42
REFERENCES .............................................................................................................................. 46
CHAPTER ONE 1: I Introduction A Bank refers to any company licensed to carry on financial institutional business as its principle business and includes all branches and offices of that company in Uganda 1 • It can also be defined to mean an establislm1ent for the custody of money received from or on behalf of, its customers2 . A regulatory framework is a structure which supports the control. direction or implementation of a proposed course of action, rule, principle or law and is thus a model that an institution can use lor reforming and coming up with an effective and logical way of improving a specific area of interest. A number of key features of what a regulatory framework should meet are: effectiveness that is to say the regulation must be focused on the problem and achieve its intended policy objecti1es with minimal side-effects. The element proportionality suggests the regulatory measures should he proportional to the problem that they seek to address and thus this principle is particularly app!ic::bk in terrn;, of any compliance burden or penalty fi·amework which may apply. Another leatu"e is flexibility. Regulatory measures should be modified or eliminated to take in to account ol'changing social and business environments and technological advances. T'mnsparcncy suggests that development and enforcement of the regulation should be transparent to the community and the banking business sector. The J!·amcwork should be consistent and predictable, for example with other policies, laws and agreements aff.:-cting regulated parties in order to avoid confusion and should also be predictable in order lo create a stable regulatory environment and foster business confidence.
FAITH, A (2022). An Appraisal of the Effectiveness of the Bank of Ugandan Regulatory Framework in Financial Institutes in Uganda. Afribary. Retrieved from https://afribary.com/works/an-appraisal-of-the-effectiveness-of-the-bank-of-ugandan-regulatory-framework-in-financial-institutes-in-uganda
FAITH, ALUNGAT "An Appraisal of the Effectiveness of the Bank of Ugandan Regulatory Framework in Financial Institutes in Uganda" Afribary. Afribary, 18 Aug. 2022, https://afribary.com/works/an-appraisal-of-the-effectiveness-of-the-bank-of-ugandan-regulatory-framework-in-financial-institutes-in-uganda. Accessed 02 May. 2024.
FAITH, ALUNGAT . "An Appraisal of the Effectiveness of the Bank of Ugandan Regulatory Framework in Financial Institutes in Uganda". Afribary, Afribary, 18 Aug. 2022. Web. 02 May. 2024. < https://afribary.com/works/an-appraisal-of-the-effectiveness-of-the-bank-of-ugandan-regulatory-framework-in-financial-institutes-in-uganda >.
FAITH, ALUNGAT . "An Appraisal of the Effectiveness of the Bank of Ugandan Regulatory Framework in Financial Institutes in Uganda" Afribary (2022). Accessed May 02, 2024. https://afribary.com/works/an-appraisal-of-the-effectiveness-of-the-bank-of-ugandan-regulatory-framework-in-financial-institutes-in-uganda