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Financial Institutions (Islamic Banking) Regulations

Statutory Instrument 2 of 2018 Current version · as at 2 February 2018
Enacted2018
Commenced—
Last amended—
Point-in-time consolidation · as at 2 February 2018. This page may not reflect amendments made after that date. Confirm the current position against the latest Uganda Gazette before relying on it.

About this Act

A full descriptive summary for this Act has not been recorded yet.

Jurisdiction
Uganda
Type
Principal Legislation
Status
In force
Language
English

Full text of the Act

8 parts · 30 sections

Enhanced Annotated View adds approved, source-linked propositions, operative requirements, judicial passages, related provisions, amendment notes and authority status. Choose Original PDF to inspect the source consolidation.

Uganda

Financial Institutions (Islamic Banking) Regulations

[This is the version of this document at 2 February 2018.]

Part I

1. Title

These Regulations may be cited as the Financial Institutions (Islamic Banking) Regulations, 2018.

Section analysis Source-linked statutory analysis Source linked
Approved statute annotation. Statutory quotations are matched to this consolidation and judicial passages are linked to judgments. Check the primary sources alongside this analysis.
What this section does
Statutory power

This section confers or regulates the statutory power described as “Title”.

“These Regulations may be cited as the Financial Institutions (Islamic Banking) Regulations, 2018.”
Primary legislation Source quotation matched
Practical effect

The power must be exercised by the authorised decision-maker, within the conditions and purpose stated in the section.

Deterministic editorial synthesis — not a substitute for the statutory text Editorial synthesis approved
Elements or requirements

Operative requirements extracted from the consolidated text.

1
  1. These Regulations may be cited as the Financial Institutions (Islamic Banking) Regulations, 2018.
Judicial interpretation

Express propositions in source-matched passages from judgments citing this section.

0

No judgment in the current Wakilii corpus expressly cites this section. Bare rule-number references are not assigned where the Order cannot be verified.

Related provisions

No express internal or cross-Act reference appears in this section.

Amendment notes

No section-specific amendment note or instrument-level amendment history appears in this consolidation.

Authority status: legislation is primary authority; judgment weight follows the displayed court level and the ratio caveat. Check version history
2. Purpose of Regulations

The purpose of these Regulations is- (a) to provide for the regulation of financial institutions conducting Islamic financial business; (b) to provide a regulatory framework for Islamic financial business; (c) to provide for the licensing and operation of Islamic financial business; and (d) to ensure that financial institutions conducting Islamic financial business conduct their operations in accordance with the Shari'ah.

Section analysis Source-linked statutory analysis Source linked
Approved statute annotation. Statutory quotations are matched to this consolidation and judicial passages are linked to judgments. Check the primary sources alongside this analysis.
What this section does
Governing rule

This section states the governing statutory rule for “Purpose of Regulations”.

“The purpose of these Regulations is- (a) to provide for the regulation of financial institutions conducting Islamic financial business; (b) to provide a regulatory framework for Islamic financial business; (c) to provide for the licensing and operation of Islamic financial business; and (d) to ensure that financial institutions conducting Islamic financial business conduct their operations in accordance with the Shari'ah.”
Primary legislation Source quotation matched
Practical effect

Use this section as the starting statutory rule for “Purpose of Regulations”, together with the linked provisions and current consolidation.

Deterministic editorial synthesis — not a substitute for the statutory text Editorial synthesis approved
Elements or requirements

Operative requirements extracted from the consolidated text.

0

This section states a single governing proposition and does not enumerate separate elements.

Judicial interpretation

Express propositions in source-matched passages from judgments citing this section.

0

No judgment in the current Wakilii corpus expressly cites this section. Bare rule-number references are not assigned where the Order cannot be verified.

Related provisions

No express internal or cross-Act reference appears in this section.

Amendment notes

No section-specific amendment note or instrument-level amendment history appears in this consolidation.

Authority status: legislation is primary authority; judgment weight follows the displayed court level and the ratio caveat. Check version history
3. Interpretation

In these Regulations, unless the context otherwise requires- "Act" means the Financial Institutions Act, 2004;

"capital adequacy" has the meaning assigned to it in the Financial Institutions (Capital Adequacy Requirements) Regulations, 2005; "corporate governance" has the meaning assigned to it in the Financial Institutions (Corporate Governance) Regulations, 2005; "credit classification and provisioning" has the meaning assigned to it in the Financial Institutions (Credit Classification and Provisioning) Regulations, 2005; "credit concentration and large exposure" has the meaning assigned to it in the Financial Institutions (Limits on Credit Concentration and Large Exposures) Regulations, 2005;

"deposit" has the meaning assigned to it in section 4(4) of the Act and for the purposes of Islamic financial business, includes sums of money held in a profit earning investment account, a profit sharing investment account and a non-profit-bearing deposit account;

"insider lending" has the meaning assigned to it in the Financial Institutions (Insider-Lending Limits) Regulations, 2005;

"Islamic contract" has the meaning assigned to it in the Act;

"Islamic financial business" has the meaning assigned to it in the Act;

"Islamic financial institution" means a company licensed to carry on financial institution business in Uganda whose entire business comprises Islamic financial business and which has declared to the Central Bank that its entire operations are and will be conducted in accordance with the Shari'ah;

"Islamic window" means the section of a financial institution, other than an Islamic financial institution, which conducts Islamic financial business;

"liquidity" has the meaning assigned to it in the Financial Institutions (Liquidity) Regulations, 2005;

"ownership and control" has the meaning assigned to it in the Financial Institutions (Ownership and Control) Regulations, 2005.

"placement" means the depositing of funds with one financial institution by another financial institution for purposes of settlement of payments and business operations.

Section analysis Source-linked statutory analysis Source linked
Approved statute annotation. Statutory quotations are matched to this consolidation and judicial passages are linked to judgments. Check the primary sources alongside this analysis.
What this section does
Definition

This section supplies the definitions or statutory meaning governing “Interpretation”.

“In these Regulations, unless the context otherwise requires- "Act" means the Financial Institutions Act, 2004;”
Primary legislation Source quotation matched
Practical effect

Use this definition when interpreting other provisions that employ the language addressed by “Interpretation”.

Deterministic editorial synthesis — not a substitute for the statutory text Editorial synthesis approved
Elements or requirements

Operative requirements extracted from the consolidated text.

10
  1. "capital adequacy" has the meaning assigned to it in the Financial Institutions (Capital Adequacy Requirements) Regulations, 2005; "corporate governance" has the meaning assigned to it in the Financial Institutions (Corporate Governance) Regulations, 2005; "credit classification and provisioning" has the meaning assigned to it in the Financial Institutions (Credit Classification and Provisioning) Regulations, 2005; "credit concentration and large exposure" has the meaning assigned to it in the Financial Institutions (Limits on Credit Concentration and Large Exposures) Regulations, 2005;
  2. "deposit" has the meaning assigned to it in section 4(4) of the Act and for the purposes of Islamic financial business, includes sums of money held in a profit earning investment account, a profit sharing investment account and a non-profit-bearing deposit account;
  3. "insider lending" has the meaning assigned to it in the Financial Institutions (Insider-Lending Limits) Regulations, 2005;
  4. "Islamic contract" has the meaning assigned to it in the Act;
  5. "Islamic financial business" has the meaning assigned to it in the Act;
  6. "Islamic financial institution" means a company licensed to carry on financial institution business in Uganda whose entire business comprises Islamic financial business and which has declared to the Central Bank that its entire operations are and will be conducted in accordance with the Shari'ah;
  7. "Islamic window" means the section of a financial institution, other than an Islamic financial institution, which conducts Islamic financial business;
  8. "liquidity" has the meaning assigned to it in the Financial Institutions (Liquidity) Regulations, 2005;

2 further items remain in the statutory text above.

Judicial interpretation

Express propositions in source-matched passages from judgments citing this section.

0

No judgment in the current Wakilii corpus expressly cites this section. Bare rule-number references are not assigned where the Order cannot be verified.

Related provisions
Section 4 · Licence to conduct Islamic financial business Financial Institutions Act
Amendment notes

No section-specific amendment note or instrument-level amendment history appears in this consolidation.

Authority status: legislation is primary authority; judgment weight follows the displayed court level and the ratio caveat. Check version history

Part II

4. Licence to conduct Islamic financial business
(1)

A person intending to establish an Islamic financial institution shall apply for a licence in accordance with the Financial Institutions (Licensing) Regulations, 2005.

(2)

For the purposes of section 115A (1) of the Act, an already licensed financial institution may apply to the Central Bank, for approval to carry on Islamic financial business through an Islamic window.

Section analysis Source-linked statutory analysis Source linked
Approved statute annotation. Statutory quotations are matched to this consolidation and judicial passages are linked to judgments. Check the primary sources alongside this analysis.
What this section does
Statutory power

This section confers or regulates the statutory power described as “Licence to conduct Islamic financial business”.

“(1) A person intending to establish an Islamic financial institution shall apply for a licence in accordance with the Financial Institutions (Licensing) Regulations, 2005.”
Primary legislation Source quotation matched
Practical effect

The power must be exercised by the authorised decision-maker, within the conditions and purpose stated in the section.

Deterministic editorial synthesis — not a substitute for the statutory text Editorial synthesis approved
Elements or requirements

Operative requirements extracted from the consolidated text.

2
  1. (1) A person intending to establish an Islamic financial institution shall apply for a licence in accordance with the Financial Institutions (Licensing) Regulations, 2005.
  2. (2) For the purposes of section 115A (1) of the Act, an already licensed financial institution may apply to the Central Bank, for approval to carry on Islamic financial business through an Islamic window.
Judicial interpretation

Express propositions in source-matched passages from judgments citing this section.

0

No judgment in the current Wakilii corpus expressly cites this section. Bare rule-number references are not assigned where the Order cannot be verified.

Related provisions

No express internal or cross-Act reference appears in this section.

Amendment notes

No section-specific amendment note or instrument-level amendment history appears in this consolidation.

Authority status: legislation is primary authority; judgment weight follows the displayed court level and the ratio caveat. Check version history

Part III

5. Deposits in Islamic financial business An

Islamic financial institution or a financial institution carrying on Islamic financial business may accept deposits from customers in the following accounts (a) a profit sharing investment account; (b) a profit earning investment account; or (c) a non-profit-bearing deposit account.

Section analysis Source-linked statutory analysis Source linked
Approved statute annotation. Statutory quotations are matched to this consolidation and judicial passages are linked to judgments. Check the primary sources alongside this analysis.
What this section does
Statutory power

This section confers or regulates the statutory power described as “Deposits in Islamic financial business An”.

“Islamic financial institution or a financial institution carrying on Islamic financial business may accept deposits from customers in the following accounts (a) a profit sharing investment account; (b) a profit earning investment account; or (c) a non-profit-bearing deposit account.”
Primary legislation Source quotation matched
Practical effect

The power must be exercised by the authorised decision-maker, within the conditions and purpose stated in the section.

Deterministic editorial synthesis — not a substitute for the statutory text Editorial synthesis approved
Elements or requirements

Operative requirements extracted from the consolidated text.

1
  1. Islamic financial institution or a financial institution carrying on Islamic financial business may accept deposits from customers in the following accounts (a) a profit sharing investment account; (b) a profit earning investment account; or (c) a non-profit-bearing deposit account.
Judicial interpretation

Express propositions in source-matched passages from judgments citing this section.

0

No judgment in the current Wakilii corpus expressly cites this section. Bare rule-number references are not assigned where the Order cannot be verified.

Related provisions

No express internal or cross-Act reference appears in this section.

Amendment notes

No section-specific amendment note or instrument-level amendment history appears in this consolidation.

Authority status: legislation is primary authority; judgment weight follows the displayed court level and the ratio caveat. Check version history
6. Profit sharing investment account
(1)

A profit sharing investment account is an account managed by a financial institution conducting Islamic financial business-

(a)

in relation to property of any kind, including currency specified by the Central Bank, held for or within the account;

(b)

as part of its Islamic financial business; or

(c)

under terms of an agreement where-

(i)

the account holder agrees that any deposit amounts are to be applied by the financial institution on behalf of the account holder as specified by agreement, which may be restricted by reference to a specified purpose or unrestricted where no particular purpose is specified; (ii) the account holder agrees to share any profit with the financial institution as manager of the account in accordance with a pre-determined specified percentage or ratio; and (iii) the account holder agrees that he or she will bear any losses in the absence of negligence or breach of contract on the part of the financial institution.

(2)

Where an account holder bears losses in accordance with the terms of the account, the financial institution shall make payments to the account holder of amounts equal to any losses in order to maintain public confidence in that financial institution and the financial institution shall ensure it has in place appropriate procedures for such payments.

(3)

Where money is deposited by a financial institution conducting Islamic financial business in a profit sharing investment account of another financial institution, the deposit shall be considered a placement.

Section analysis Source-linked statutory analysis Source linked
Approved statute annotation. Statutory quotations are matched to this consolidation and judicial passages are linked to judgments. Check the primary sources alongside this analysis.
What this section does
Statutory power

This section confers or regulates the statutory power described as “Profit sharing investment account”.

“(1) A profit sharing investment account is an account managed by a financial institution conducting Islamic financial business-”
Primary legislation Source quotation matched
Practical effect

The power must be exercised by the authorised decision-maker, within the conditions and purpose stated in the section.

Deterministic editorial synthesis — not a substitute for the statutory text Editorial synthesis approved
Elements or requirements

Operative requirements extracted from the consolidated text.

7
  1. (1) A profit sharing investment account is an account managed by a financial institution conducting Islamic financial business-
  2. (a) in relation to property of any kind, including currency specified by the Central Bank, held for or within the account;
  3. (b) as part of its Islamic financial business; or
  4. (c) under terms of an agreement where-
  5. (i) the account holder agrees that any deposit amounts are to be applied by the financial institution on behalf of the account holder as specified by agreement, which may be restricted by reference to a specified purpose or unrestricted where no particular purpose is specified; (ii) the account holder agrees to share any profit with the financial institution as manager of the account in accordance with a pre-determined specified percentage or ratio; and (iii) the account holder agrees that he or she will bear any losses in the absence of negligence or breach of contract on the part of the financial institution.
  6. (2) Where an account holder bears losses in accordance with the terms of the account, the financial institution shall make payments to the account holder of amounts equal to any losses in order to maintain public confidence in that financial institution and the financial institution shall ensure it has in place appropriate procedures for such payments.
  7. (3) Where money is deposited by a financial institution conducting Islamic financial business in a profit sharing investment account of another financial institution, the deposit shall be considered a placement.
Judicial interpretation

Express propositions in source-matched passages from judgments citing this section.

0

No judgment in the current Wakilii corpus expressly cites this section. Bare rule-number references are not assigned where the Order cannot be verified.

Related provisions

No express internal or cross-Act reference appears in this section.

Amendment notes

No section-specific amendment note or instrument-level amendment history appears in this consolidation.

Authority status: legislation is primary authority; judgment weight follows the displayed court level and the ratio caveat. Check version history
7. Profit earning investment account
(1)

Deposits in a profit earning investment account in an Islamic financial institution or a financial institution conducting Islamic financial business through an Islamic window shall be treated in the same manner as deposits generally and all references to deposits in the Act and regulations made under the Act shall be construed accordingly.

(2)

A profit earning investment account is an account managed by a financial institution under an agreement-

(a)

under which the account holder agrees that the deposit amounts are to be applied by the financial institution on behalf of the account holder in the purchase of an asset to be sold to the financial institution at a price not less than the deposit amount used in the initial purchase of that asset on behalf of the account holder, with the difference in the prices representing the profit earned on the investment of those deposit amounts as agreed between the financial institution and the account holder; and

(b)

under which there is no exposure on the part of the account holder or the financial institution to changes in the market value of the asset;

(3)

A financial institution shall repay to the holder of a profit earning investment account the full amount deposited by the account holder into that account, together with the agreed profit earned on the relevant investment, less any agreed fees, costs and other expenses, in accordance with the account terms.

(4)

An Islamic financial institution or a financial institution conducting Islamic financial business through an Islamic window shall minimise any risks associated with the purchase and sale of the underlying assets for the purposes of any profit earning investment account in order to avoid exposure to changes in the market value of those assets.

Section analysis Source-linked statutory analysis Source linked
Approved statute annotation. Statutory quotations are matched to this consolidation and judicial passages are linked to judgments. Check the primary sources alongside this analysis.
What this section does
Mandatory duty

This section imposes mandatory requirements concerning “Profit earning investment account”.

“(1) Deposits in a profit earning investment account in an Islamic financial institution or a financial institution conducting Islamic financial business through an Islamic window shall be treated in the same manner as deposits generally and all references to deposits in the Act and regulations made under the Act shall be construed accordingly.”
Primary legislation Source quotation matched
Practical effect

The provision uses mandatory language; the responsible person or institution should be able to demonstrate compliance.

Deterministic editorial synthesis — not a substitute for the statutory text Editorial synthesis approved
Elements or requirements

Operative requirements extracted from the consolidated text.

6
  1. (1) Deposits in a profit earning investment account in an Islamic financial institution or a financial institution conducting Islamic financial business through an Islamic window shall be treated in the same manner as deposits generally and all references to deposits in the Act and regulations made under the Act shall be construed accordingly.
  2. (2) A profit earning investment account is an account managed by a financial institution under an agreement-
  3. (a) under which the account holder agrees that the deposit amounts are to be applied by the financial institution on behalf of the account holder in the purchase of an asset to be sold to the financial institution at a price not less than the deposit amount used in the initial purchase of that asset on behalf of the account holder, with the difference in the prices representing the profit earned on the investment of those deposit amounts as agreed between the financial institution and the account holder; and
  4. (b) under which there is no exposure on the part of the account holder or the financial institution to changes in the market value of the asset;
  5. (3) A financial institution shall repay to the holder of a profit earning investment account the full amount deposited by the account holder into that account, together with the agreed profit earned on the relevant investment, less any agreed fees, costs and other expenses, in accordance with the account terms.
  6. (4) An Islamic financial institution or a financial institution conducting Islamic financial business through an Islamic window shall minimise any risks associated with the purchase and sale of the underlying assets for the purposes of any profit earning investment account in order to avoid exposure to changes in the market value of those assets.
Judicial interpretation

Express propositions in source-matched passages from judgments citing this section.

0

No judgment in the current Wakilii corpus expressly cites this section. Bare rule-number references are not assigned where the Order cannot be verified.

Related provisions

No express internal or cross-Act reference appears in this section.

Amendment notes

No section-specific amendment note or instrument-level amendment history appears in this consolidation.

Authority status: legislation is primary authority; judgment weight follows the displayed court level and the ratio caveat. Check version history
8. Non-profit-bearing deposit account
(1)

In accordance with section 4(4) of the Act, non-profit-bearing deposits of an Islamic financial institution or a financial institution operating an Islamic window shall be treated in the same manner as deposits generally of a financial institution and all references to deposits in the Act and in regulations made under the Act.

(2)

An Islamic financial institution or a financial institution operating an Islamic window offering any form of non-profit-bearing deposit shall ensure that those deposits are clearly marketed as deposits on non-profit-bearing accounts.

Section analysis Source-linked statutory analysis Source linked
Approved statute annotation. Statutory quotations are matched to this consolidation and judicial passages are linked to judgments. Check the primary sources alongside this analysis.
What this section does
Mandatory duty

This section imposes mandatory requirements concerning “Non-profit-bearing deposit account”.

“(1) In accordance with section 4(4) of the Act, non-profit-bearing deposits of an Islamic financial institution or a financial institution operating an Islamic window shall be treated in the same manner as deposits generally of a financial institution and all references to deposits in the Act and in regulations made under the Act.”
Primary legislation Source quotation matched
Practical effect

The provision uses mandatory language; the responsible person or institution should be able to demonstrate compliance.

Deterministic editorial synthesis — not a substitute for the statutory text Editorial synthesis approved
Elements or requirements

Operative requirements extracted from the consolidated text.

2
  1. (1) In accordance with section 4(4) of the Act, non-profit-bearing deposits of an Islamic financial institution or a financial institution operating an Islamic window shall be treated in the same manner as deposits generally of a financial institution and all references to deposits in the Act and in regulations made under the Act.
  2. (2) An Islamic financial institution or a financial institution operating an Islamic window offering any form of non-profit-bearing deposit shall ensure that those deposits are clearly marketed as deposits on non-profit-bearing accounts.
Judicial interpretation

Express propositions in source-matched passages from judgments citing this section.

0

No judgment in the current Wakilii corpus expressly cites this section. Bare rule-number references are not assigned where the Order cannot be verified.

Related provisions
Section 4 · Licence to conduct Islamic financial business
Amendment notes

No section-specific amendment note or instrument-level amendment history appears in this consolidation.

Authority status: legislation is primary authority; judgment weight follows the displayed court level and the ratio caveat. Check version history

Part IV

9. Maintenance of capital adequacy and liquidity requirements
(1)

Notwithstanding the Financial Institutions (Capital Adequacy Requirements) Regulations, 2005, an Islamic financial institution or financial institution operating an Islamic window shall, in the computation of the capital adequacy requirements, include the sum of any accrued losses in the profit sharing investment accounts as part of its contingent claims.

(2)

Notwithstanding the Financial Institutions (Liquidity) Regulations, 2005, the computation of the Liquid Assets requirement of an Islamic financial institution or a financial institution operating an Islamic window shall include the sum of any accrued losses in the profit sharing investment accounts.

Section analysis Source-linked statutory analysis Source linked
Approved statute annotation. Statutory quotations are matched to this consolidation and judicial passages are linked to judgments. Check the primary sources alongside this analysis.
What this section does
Mandatory duty

This section imposes mandatory requirements concerning “Maintenance of capital adequacy and liquidity requirements”.

“(1) Notwithstanding the Financial Institutions (Capital Adequacy Requirements) Regulations, 2005, an Islamic financial institution or financial institution operating an Islamic window shall, in the computation of the capital adequacy requirements, include the sum of any accrued losses in the profit sharing investment accounts as part of its contingent claims.”
Primary legislation Source quotation matched
Practical effect

The provision uses mandatory language; the responsible person or institution should be able to demonstrate compliance.

Deterministic editorial synthesis — not a substitute for the statutory text Editorial synthesis approved
Elements or requirements

Operative requirements extracted from the consolidated text.

2
  1. (1) Notwithstanding the Financial Institutions (Capital Adequacy Requirements) Regulations, 2005, an Islamic financial institution or financial institution operating an Islamic window shall, in the computation of the capital adequacy requirements, include the sum of any accrued losses in the profit sharing investment accounts as part of its contingent claims.
  2. (2) Notwithstanding the Financial Institutions (Liquidity) Regulations, 2005, the computation of the Liquid Assets requirement of an Islamic financial institution or a financial institution operating an Islamic window shall include the sum of any accrued losses in the profit sharing investment accounts.
Judicial interpretation

Express propositions in source-matched passages from judgments citing this section.

0

No judgment in the current Wakilii corpus expressly cites this section. Bare rule-number references are not assigned where the Order cannot be verified.

Related provisions

No express internal or cross-Act reference appears in this section.

Amendment notes

No section-specific amendment note or instrument-level amendment history appears in this consolidation.

Authority status: legislation is primary authority; judgment weight follows the displayed court level and the ratio caveat. Check version history
10. Requirements relating to profits to be

shared with holders of profit sharing investment accounts (1) A financial institution carrying on Islamic financial business or a financial institution operating an Islamic window shall-

(a)

keep a record of any profits to be shared with the holders of profit sharing investment accounts; and

(b)

appropriate to a reserve account, an amount to be used to cater for possible losses arising out of projects financed by profit sharing investment account holders.

(2)

The amount appropriated to a reserve account under subregulation (1)(b) shall comprise of profits accrued before sharing profits with the holders of profit sharing investment accounts.

(3)

The reserve account under subregulation (1)(b), shall qualify as a general reserve in accordance with the Financial Institutions (Capital Adequacy Requirements) regulations, 2005.

(4)

A financial institution carrying on Islamic financial business or a financial institution operating an Islamic window shall disclose in its annual financial statements, the amounts held in and paid out of the reserve account during that year.

Section analysis Source-linked statutory analysis Source linked
Approved statute annotation. Statutory quotations are matched to this consolidation and judicial passages are linked to judgments. Check the primary sources alongside this analysis.
What this section does
Mandatory duty

This section imposes mandatory requirements concerning “Requirements relating to profits to be”.

“shared with holders of profit sharing investment accounts (1) A financial institution carrying on Islamic financial business or a financial institution operating an Islamic window shall-”
Primary legislation Source quotation matched
Practical effect

The provision uses mandatory language; the responsible person or institution should be able to demonstrate compliance.

Deterministic editorial synthesis — not a substitute for the statutory text Editorial synthesis approved
Elements or requirements

Operative requirements extracted from the consolidated text.

5
  1. (a) keep a record of any profits to be shared with the holders of profit sharing investment accounts; and
  2. (b) appropriate to a reserve account, an amount to be used to cater for possible losses arising out of projects financed by profit sharing investment account holders.
  3. (2) The amount appropriated to a reserve account under subregulation (1)(b) shall comprise of profits accrued before sharing profits with the holders of profit sharing investment accounts.
  4. (3) The reserve account under subregulation (1)(b), shall qualify as a general reserve in accordance with the Financial Institutions (Capital Adequacy Requirements) regulations, 2005.
  5. (4) A financial institution carrying on Islamic financial business or a financial institution operating an Islamic window shall disclose in its annual financial statements, the amounts held in and paid out of the reserve account during that year.
Judicial interpretation

Express propositions in source-matched passages from judgments citing this section.

0

No judgment in the current Wakilii corpus expressly cites this section. Bare rule-number references are not assigned where the Order cannot be verified.

Related provisions

No express internal or cross-Act reference appears in this section.

Amendment notes

No section-specific amendment note or instrument-level amendment history appears in this consolidation.

Authority status: legislation is primary authority; judgment weight follows the displayed court level and the ratio caveat. Check version history

Part V

11. Credit provision
(1)

Financing arrangements under Islamic financial business may include the making available of any credit provision in accordance with the Act and these Regulations.

(2)

A credit provision referred to in subregulation (1) may take the form of-

(a)

equity partnership financing;

(b)

lease based financing; or

(c)

sale based financing.

(3)

Equity partnership financing referred to in subregulation (2)(a), includes-

(a)

musharakah, that is, a profit and loss sharing partnership;

(b)

Musharakah mutanaqisah, that is, a diminishing partnership in which the interests of one of the partners, being the financial institution, are gradually acquired by the other partner over time, and by which assets are owned jointly by a financial institution and its customer;

(c)

equity financing, including mudarabah, that is-

(i)

a profit sharing partnership by which capital is provided by a financial institution to its customer; and

(ii)

managed and applied by the customer for a specified purpose; and the profits arising from the management of the capital shared between the financial institution as capital provider and the customer in accordance with the agreement.

(4)

Lease based financing, referred to in subregulation (2)(b), including al-ijarah (lease), al-ijarah muntahia bi al-tamlik (lease followed by ownership of the leased assets) and al-ijarah thumma al-bai (lease with an option to acquire the leased assets), is an arrangement where assets may be purchased by a financial institution and leased to its customer.

(5)

Sale based financing referred to in subregulation (2)(c), is an arrangement where assets are purchased by a financial institution and sold to a customer at a price greater than the cost price at which the asset was purchased by the financial institution.

(6)

For purposes of subregulation (5) a financial institution shall put in place measures to ensure that the financial institution does not suffer exposure to changes in the value of the relevant asset underlying the sales based financing arrangement.

Section analysis Source-linked statutory analysis Source linked
Approved statute annotation. Statutory quotations are matched to this consolidation and judicial passages are linked to judgments. Check the primary sources alongside this analysis.
What this section does
Definition

This section supplies the definitions or statutory meaning governing “Credit provision”.

“(1) Financing arrangements under Islamic financial business may include the making available of any credit provision in accordance with the Act and these Regulations.”
Primary legislation Source quotation matched
Practical effect

Use this definition when interpreting other provisions that employ the language addressed by “Credit provision”.

Deterministic editorial synthesis — not a substitute for the statutory text Editorial synthesis approved
Elements or requirements

Operative requirements extracted from the consolidated text.

14
  1. (1) Financing arrangements under Islamic financial business may include the making available of any credit provision in accordance with the Act and these Regulations.
  2. (2) A credit provision referred to in subregulation (1) may take the form of-
  3. (a) equity partnership financing;
  4. (b) lease based financing; or
  5. (c) sale based financing.
  6. (3) Equity partnership financing referred to in subregulation (2)(a), includes-
  7. (a) musharakah, that is, a profit and loss sharing partnership;
  8. (b) Musharakah mutanaqisah, that is, a diminishing partnership in which the interests of one of the partners, being the financial institution, are gradually acquired by the other partner over time, and by which assets are owned jointly by a financial institution and its customer;

6 further items remain in the statutory text above.

Judicial interpretation

Express propositions in source-matched passages from judgments citing this section.

0

No judgment in the current Wakilii corpus expressly cites this section. Bare rule-number references are not assigned where the Order cannot be verified.

Related provisions

No express internal or cross-Act reference appears in this section.

Amendment notes

No section-specific amendment note or instrument-level amendment history appears in this consolidation.

Authority status: legislation is primary authority; judgment weight follows the displayed court level and the ratio caveat. Check version history

Part VI

12. Shari'ah Advisory Board
(1)

Every financial institution which conducts Islamic financial business shall appoint and maintain a Shari'ah Advisory Board in accordance with section 115B of the Act.

(2)

The Shari'ah Advisory Board shall be appointed by the board of directors of the financial institution in accordance with the Act and the rules and policies of the financial institution.

(3)

The Shari'ah Advisory Board shall comprise of not less than three members and not more than five members.

(4)

The Shari'ah Advisory Board shall be answerable to the board of directors of the financial institution.

Section analysis Source-linked statutory analysis Source linked
Approved statute annotation. Statutory quotations are matched to this consolidation and judicial passages are linked to judgments. Check the primary sources alongside this analysis.
What this section does
Mandatory duty

This section imposes mandatory requirements concerning “Shari'ah Advisory Board”.

“(1) Every financial institution which conducts Islamic financial business shall appoint and maintain a Shari'ah Advisory Board in accordance with section 115B of the Act.”
Primary legislation Source quotation matched
Practical effect

The provision uses mandatory language; the responsible person or institution should be able to demonstrate compliance.

Deterministic editorial synthesis — not a substitute for the statutory text Editorial synthesis approved
Elements or requirements

Operative requirements extracted from the consolidated text.

4
  1. (1) Every financial institution which conducts Islamic financial business shall appoint and maintain a Shari'ah Advisory Board in accordance with section 115B of the Act.
  2. (2) The Shari'ah Advisory Board shall be appointed by the board of directors of the financial institution in accordance with the Act and the rules and policies of the financial institution.
  3. (3) The Shari'ah Advisory Board shall comprise of not less than three members and not more than five members.
  4. (4) The Shari'ah Advisory Board shall be answerable to the board of directors of the financial institution.
Judicial interpretation

Express propositions in source-matched passages from judgments citing this section.

0

No judgment in the current Wakilii corpus expressly cites this section. Bare rule-number references are not assigned where the Order cannot be verified.

Related provisions

No express internal or cross-Act reference appears in this section.

Amendment notes

No section-specific amendment note or instrument-level amendment history appears in this consolidation.

Authority status: legislation is primary authority; judgment weight follows the displayed court level and the ratio caveat. Check version history
13. Approval of members of Shari'ah Advisory

Board by Central Bank (1) A financial institution shall apply to the Central Bank for its approval, of a person nominated to be appointed as a member of the financial institution's Shari'ah Advisory Board.

(2)

The Central Bank shall in considering an application for approval under subregulation (1), take into consideration whether the person proposed for appointment- (a) possesses sufficient qualifications and experience in Shari'ah and Islamic banking; (b) possesses sufficient experience of the financial services industry; and (c) in respect of the Chairperson, has served on the Shari'ah Advisory Board of another reputable financial institution conducting Islamic financial business.

(3)

The Central Bank shall after considering an application under subregulation (2), give or withhold its approval of the applicant as a member of the Shari'ah Advisory Board.

Section analysis Source-linked statutory analysis Source linked
Approved statute annotation. Statutory quotations are matched to this consolidation and judicial passages are linked to judgments. Check the primary sources alongside this analysis.
What this section does
Mandatory duty

This section imposes mandatory requirements concerning “Approval of members of Shari'ah Advisory”.

“Board by Central Bank (1) A financial institution shall apply to the Central Bank for its approval, of a person nominated to be appointed as a member of the financial institution's Shari'ah Advisory Board.”
Primary legislation Source quotation matched
Practical effect

The provision uses mandatory language; the responsible person or institution should be able to demonstrate compliance.

Deterministic editorial synthesis — not a substitute for the statutory text Editorial synthesis approved
Elements or requirements

Operative requirements extracted from the consolidated text.

2
  1. (2) The Central Bank shall in considering an application for approval under subregulation (1), take into consideration whether the person proposed for appointment- (a) possesses sufficient qualifications and experience in Shari'ah and Islamic banking; (b) possesses sufficient experience of the financial services industry; and (c) in respect of the Chairperson, has served on the Shari'ah Advisory Board of another reputable financial institution conducting Islamic financial business.
  2. (3) The Central Bank shall after considering an application under subregulation (2), give or withhold its approval of the applicant as a member of the Shari'ah Advisory Board.
Judicial interpretation

Express propositions in source-matched passages from judgments citing this section.

0

No judgment in the current Wakilii corpus expressly cites this section. Bare rule-number references are not assigned where the Order cannot be verified.

Related provisions

No express internal or cross-Act reference appears in this section.

Amendment notes

No section-specific amendment note or instrument-level amendment history appears in this consolidation.

Authority status: legislation is primary authority; judgment weight follows the displayed court level and the ratio caveat. Check version history
14. Functions of the Shari'ah Advisory Board
(1)

The Shari'ah Advisory Board shall advise, approve and review the Islamic financial business of a financial institution in order to ensure that the Islamic financial business of the financial institution complies with the Shari'ah. (2) The Shari'ah Advisory Board of a financial institution shall be independent of all other functions of the financial institution.

Section analysis Source-linked statutory analysis Source linked
Approved statute annotation. Statutory quotations are matched to this consolidation and judicial passages are linked to judgments. Check the primary sources alongside this analysis.
What this section does
Mandatory duty

This section imposes mandatory requirements concerning “Functions of the Shari'ah Advisory Board”.

“(1) The Shari'ah Advisory Board shall advise, approve and review the Islamic financial business of a financial institution in order to ensure that the Islamic financial business of the financial institution complies with the Shari'ah. (2) The Shari'ah Advisory Board of a financial institution shall be independent of all other functions of the financial institution.”
Primary legislation Source quotation matched
Practical effect

The provision uses mandatory language; the responsible person or institution should be able to demonstrate compliance.

Deterministic editorial synthesis — not a substitute for the statutory text Editorial synthesis approved
Elements or requirements

Operative requirements extracted from the consolidated text.

1
  1. (1) The Shari'ah Advisory Board shall advise, approve and review the Islamic financial business of a financial institution in order to ensure that the Islamic financial business of the financial institution complies with the Shari'ah. (2) The Shari'ah Advisory Board of a financial institution shall be independent of all other functions of the financial institution.
Judicial interpretation

Express propositions in source-matched passages from judgments citing this section.

0

No judgment in the current Wakilii corpus expressly cites this section. Bare rule-number references are not assigned where the Order cannot be verified.

Related provisions

No express internal or cross-Act reference appears in this section.

Amendment notes

No section-specific amendment note or instrument-level amendment history appears in this consolidation.

Authority status: legislation is primary authority; judgment weight follows the displayed court level and the ratio caveat. Check version history
15. Shari'ah audit
(1)

A financial institution carrying on Islamic financial business or a financial institution operating an Islamic window shall conduct a Shari'ah audit on a periodical basis

(2)

The Shari'ah audit may be performed by internal auditors with adequate knowledge and training in banking and Shari'ah-related matters.

(3)

A financial institution carrying on Islamic financial business or a financial institution operating an Islamic window may engage experts to conduct the audit.

(4)

A Shari'ah audit shall be designed to enable the financial institution-

(a)

to assess whether a sound and effective internal control system for Shari'ah compliance has been implemented;

(b)

to understand the business activities of the institution to allow for better scoping of an audit exercise, including auditability and relevance of activities;

(c)

to develop a comprehensive internal Shari'ah audit program or plan and shall include objectives, scope, personnel assignment, sampling, control and duration as well as establish proper audit processes, policies and procedures of the financial institution's operations;

(d)

to obtain and make reference to relevant sources including decisions of the Shari'ah Advisory Board;

(e)

to communicate results of any assessment or findings arising from the Shari'ah audit to the Shari'ah Advisory Board; and

(f)

to provide recommendations on corrective measures for addressing the identified shortcomings.

(5)

The auditors referred to in this regulation shall report to- (a) the Shari'ah Advisory Board in relation to its functions; and (b) the management of the financial institution in relation to its administrative arrangements.

Section analysis Source-linked statutory analysis Source linked
Approved statute annotation. Statutory quotations are matched to this consolidation and judicial passages are linked to judgments. Check the primary sources alongside this analysis.
What this section does
Statutory power

This section confers or regulates the statutory power described as “Shari'ah audit”.

“(1) A financial institution carrying on Islamic financial business or a financial institution operating an Islamic window shall conduct a Shari'ah audit on a periodical basis”
Primary legislation Source quotation matched
Practical effect

The power must be exercised by the authorised decision-maker, within the conditions and purpose stated in the section.

Deterministic editorial synthesis — not a substitute for the statutory text Editorial synthesis approved
Elements or requirements

Operative requirements extracted from the consolidated text.

11
  1. (1) A financial institution carrying on Islamic financial business or a financial institution operating an Islamic window shall conduct a Shari'ah audit on a periodical basis
  2. (2) The Shari'ah audit may be performed by internal auditors with adequate knowledge and training in banking and Shari'ah-related matters.
  3. (3) A financial institution carrying on Islamic financial business or a financial institution operating an Islamic window may engage experts to conduct the audit.
  4. (4) A Shari'ah audit shall be designed to enable the financial institution-
  5. (a) to assess whether a sound and effective internal control system for Shari'ah compliance has been implemented;
  6. (b) to understand the business activities of the institution to allow for better scoping of an audit exercise, including auditability and relevance of activities;
  7. (c) to develop a comprehensive internal Shari'ah audit program or plan and shall include objectives, scope, personnel assignment, sampling, control and duration as well as establish proper audit processes, policies and procedures of the financial institution's operations;
  8. (d) to obtain and make reference to relevant sources including decisions of the Shari'ah Advisory Board;

3 further items remain in the statutory text above.

Judicial interpretation

Express propositions in source-matched passages from judgments citing this section.

0

No judgment in the current Wakilii corpus expressly cites this section. Bare rule-number references are not assigned where the Order cannot be verified.

Related provisions

No express internal or cross-Act reference appears in this section.

Amendment notes

No section-specific amendment note or instrument-level amendment history appears in this consolidation.

Authority status: legislation is primary authority; judgment weight follows the displayed court level and the ratio caveat. Check version history
16. Removal of member of Shari'ah Advisory Board

A member of a Shari'ah Advisory Board may be removed only by the board of directors of the financial institution or at the direction of the Central Bank.

Section analysis Source-linked statutory analysis Source linked
Approved statute annotation. Statutory quotations are matched to this consolidation and judicial passages are linked to judgments. Check the primary sources alongside this analysis.
What this section does
Statutory power

This section confers or regulates the statutory power described as “Removal of member of Shari'ah Advisory Board”.

“A member of a Shari'ah Advisory Board may be removed only by the board of directors of the financial institution or at the direction of the Central Bank.”
Primary legislation Source quotation matched
Practical effect

The power must be exercised by the authorised decision-maker, within the conditions and purpose stated in the section.

Deterministic editorial synthesis — not a substitute for the statutory text Editorial synthesis approved
Elements or requirements

Operative requirements extracted from the consolidated text.

1
  1. A member of a Shari'ah Advisory Board may be removed only by the board of directors of the financial institution or at the direction of the Central Bank.
Judicial interpretation

Express propositions in source-matched passages from judgments citing this section.

0

No judgment in the current Wakilii corpus expressly cites this section. Bare rule-number references are not assigned where the Order cannot be verified.

Related provisions

No express internal or cross-Act reference appears in this section.

Amendment notes

No section-specific amendment note or instrument-level amendment history appears in this consolidation.

Authority status: legislation is primary authority; judgment weight follows the displayed court level and the ratio caveat. Check version history
17. Board of directors to report on Shari'ah compliance

The board of directors of a financial institution which conducts Islamic financial business shall- (a) in respect of the financial statements of the financial institution, report at least once a year, on the Shari'ah compliance of the financial institution; and (b) in respect of the financial statements of the financial institution, disclose the remuneration paid to the members of Shari'ah Advisory Board.

Section analysis Source-linked statutory analysis Source linked
Approved statute annotation. Statutory quotations are matched to this consolidation and judicial passages are linked to judgments. Check the primary sources alongside this analysis.
What this section does
Mandatory duty

This section imposes mandatory requirements concerning “Board of directors to report on Shari'ah compliance”.

“The board of directors of a financial institution which conducts Islamic financial business shall- (a) in respect of the financial statements of the financial institution, report at least once a year, on the Shari'ah compliance of the financial institution; and (b) in respect of the financial statements of the financial institution, disclose the remuneration paid to the members of Shari'ah Advisory Board.”
Primary legislation Source quotation matched
Practical effect

The provision uses mandatory language; the responsible person or institution should be able to demonstrate compliance.

Deterministic editorial synthesis — not a substitute for the statutory text Editorial synthesis approved
Elements or requirements

Operative requirements extracted from the consolidated text.

1
  1. The board of directors of a financial institution which conducts Islamic financial business shall- (a) in respect of the financial statements of the financial institution, report at least once a year, on the Shari'ah compliance of the financial institution; and (b) in respect of the financial statements of the financial institution, disclose the remuneration paid to the members of Shari'ah Advisory Board.
Judicial interpretation

Express propositions in source-matched passages from judgments citing this section.

0

No judgment in the current Wakilii corpus expressly cites this section. Bare rule-number references are not assigned where the Order cannot be verified.

Related provisions

No express internal or cross-Act reference appears in this section.

Amendment notes

No section-specific amendment note or instrument-level amendment history appears in this consolidation.

Authority status: legislation is primary authority; judgment weight follows the displayed court level and the ratio caveat. Check version history

Part VII

18. Central Shari'ah Advisory Council

The Central Shari'ah Advisory Council established in the Central Bank by the Act shall- (a) advise the Central Bank on matters of regulation and supervision of Islamic banking systems in Uganda; and

(b)

approve any product to be offered by financial institutions conducting Islamic banking.

Section analysis Source-linked statutory analysis Source linked
Approved statute annotation. Statutory quotations are matched to this consolidation and judicial passages are linked to judgments. Check the primary sources alongside this analysis.
What this section does
Mandatory duty

This section imposes mandatory requirements concerning “Central Shari'ah Advisory Council”.

“The Central Shari'ah Advisory Council established in the Central Bank by the Act shall- (a) advise the Central Bank on matters of regulation and supervision of Islamic banking systems in Uganda; and”
Primary legislation Source quotation matched
Practical effect

The provision uses mandatory language; the responsible person or institution should be able to demonstrate compliance.

Deterministic editorial synthesis — not a substitute for the statutory text Editorial synthesis approved
Elements or requirements

Operative requirements extracted from the consolidated text.

1
  1. (b) approve any product to be offered by financial institutions conducting Islamic banking.
Judicial interpretation

Express propositions in source-matched passages from judgments citing this section.

0

No judgment in the current Wakilii corpus expressly cites this section. Bare rule-number references are not assigned where the Order cannot be verified.

Related provisions

No express internal or cross-Act reference appears in this section.

Amendment notes

No section-specific amendment note or instrument-level amendment history appears in this consolidation.

Authority status: legislation is primary authority; judgment weight follows the displayed court level and the ratio caveat. Check version history
19. Composition of the Central Shari'ah Advisory Council
(1)

The Central Shari'ah Advisory Council shall comprise not less than five members who shall include-

(a)

the Governor, who shall be the Chairperson of the Council;

(b)

the executive director responsible for supervision in the Central Bank who shall be the secretary to the Council;

(c)

the head of the legal department of the Central Bank; and

(d)

two Shari'ah scholars who shall be appointed by the Board of Directors of the Central Bank.

(2)

A Shari'ah scholar appointed to the Central Shari'ah Advisory Council shall hold office on such terms and conditions as may be provided in his or her letter of appointment, and may be eligible for reappointment.

Section analysis Source-linked statutory analysis Source linked
Approved statute annotation. Statutory quotations are matched to this consolidation and judicial passages are linked to judgments. Check the primary sources alongside this analysis.
What this section does
Statutory power

This section confers or regulates the statutory power described as “Composition of the Central Shari'ah Advisory Council”.

“(1) The Central Shari'ah Advisory Council shall comprise not less than five members who shall include-”
Primary legislation Source quotation matched
Practical effect

The power must be exercised by the authorised decision-maker, within the conditions and purpose stated in the section.

Deterministic editorial synthesis — not a substitute for the statutory text Editorial synthesis approved
Elements or requirements

Operative requirements extracted from the consolidated text.

6
  1. (1) The Central Shari'ah Advisory Council shall comprise not less than five members who shall include-
  2. (a) the Governor, who shall be the Chairperson of the Council;
  3. (b) the executive director responsible for supervision in the Central Bank who shall be the secretary to the Council;
  4. (c) the head of the legal department of the Central Bank; and
  5. (d) two Shari'ah scholars who shall be appointed by the Board of Directors of the Central Bank.
  6. (2) A Shari'ah scholar appointed to the Central Shari'ah Advisory Council shall hold office on such terms and conditions as may be provided in his or her letter of appointment, and may be eligible for reappointment.
Judicial interpretation

Express propositions in source-matched passages from judgments citing this section.

0

No judgment in the current Wakilii corpus expressly cites this section. Bare rule-number references are not assigned where the Order cannot be verified.

Related provisions

No express internal or cross-Act reference appears in this section.

Amendment notes

No section-specific amendment note or instrument-level amendment history appears in this consolidation.

Authority status: legislation is primary authority; judgment weight follows the displayed court level and the ratio caveat. Check version history
20. Qualifications of Shari'ah scholars

A Shari'ah scholar appointed to the Central Shari'ah Advisory Council shall have-

(a)

knowledge and experience in Shari'ah, Islamic Banking or such related disciplines as the Central Bank may specify;

(b)

experience in the financial services industry;

(c)

good standing, reputation and recognition in Uganda or any other country;

(d)

experience in serving on the Shari'ah Advisory Board of any reputable institution conducting Islamic financial business.

Section analysis Source-linked statutory analysis Source linked
Approved statute annotation. Statutory quotations are matched to this consolidation and judicial passages are linked to judgments. Check the primary sources alongside this analysis.
What this section does
Statutory power

This section confers or regulates the statutory power described as “Qualifications of Shari'ah scholars”.

“A Shari'ah scholar appointed to the Central Shari'ah Advisory Council shall have-”
Primary legislation Source quotation matched
Practical effect

The power must be exercised by the authorised decision-maker, within the conditions and purpose stated in the section.

Deterministic editorial synthesis — not a substitute for the statutory text Editorial synthesis approved
Elements or requirements

Operative requirements extracted from the consolidated text.

4
  1. (a) knowledge and experience in Shari'ah, Islamic Banking or such related disciplines as the Central Bank may specify;
  2. (b) experience in the financial services industry;
  3. (c) good standing, reputation and recognition in Uganda or any other country;
  4. (d) experience in serving on the Shari'ah Advisory Board of any reputable institution conducting Islamic financial business.
Judicial interpretation

Express propositions in source-matched passages from judgments citing this section.

0

No judgment in the current Wakilii corpus expressly cites this section. Bare rule-number references are not assigned where the Order cannot be verified.

Related provisions

No express internal or cross-Act reference appears in this section.

Amendment notes

No section-specific amendment note or instrument-level amendment history appears in this consolidation.

Authority status: legislation is primary authority; judgment weight follows the displayed court level and the ratio caveat. Check version history

Part VIII

21. Remedial measures and administrative sanctions
(1)

Where the Central Bank determines that a financial institution conducting Islamic financial business is not in compliance with these Regulations, the Central Bank may impose any or all of the corrective actions prescribed in Part IX and section 126 (2) of the Act.

(2)

The Central Bank may, in addition to the remedial measures prescribed in sub regulation (1), impose any or all of the following administrative sanctions-

(a)

suspension of the licence of an Islamic financial institution;

(b)

revocation of the licence of an Islamic financial institution;

(c)

suspension of the approval to carry on Islamic financial business through an Islamic window;

(d)

cancellation of the approval to carry on Islamic financial business through an Islamic window; or

(e)

suspension or prohibition from providing any new Islamic financial business products.

Cross References

Section analysis Source-linked statutory analysis Source linked
Approved statute annotation. Statutory quotations are matched to this consolidation and judicial passages are linked to judgments. Check the primary sources alongside this analysis.
What this section does
Statutory power

This section confers or regulates the statutory power described as “Remedial measures and administrative sanctions”.

“(1) Where the Central Bank determines that a financial institution conducting Islamic financial business is not in compliance with these Regulations, the Central Bank may impose any or all of the corrective actions prescribed in Part IX and section 126 (2) of the Act.”
Primary legislation Source quotation matched
Practical effect

The power must be exercised by the authorised decision-maker, within the conditions and purpose stated in the section.

Deterministic editorial synthesis — not a substitute for the statutory text Editorial synthesis approved
Elements or requirements

Operative requirements extracted from the consolidated text.

7
  1. (1) Where the Central Bank determines that a financial institution conducting Islamic financial business is not in compliance with these Regulations, the Central Bank may impose any or all of the corrective actions prescribed in Part IX and section 126 (2) of the Act.
  2. (2) The Central Bank may, in addition to the remedial measures prescribed in sub regulation (1), impose any or all of the following administrative sanctions-
  3. (a) suspension of the licence of an Islamic financial institution;
  4. (b) revocation of the licence of an Islamic financial institution;
  5. (c) suspension of the approval to carry on Islamic financial business through an Islamic window;
  6. (d) cancellation of the approval to carry on Islamic financial business through an Islamic window; or
  7. (e) suspension or prohibition from providing any new Islamic financial business products.
Judicial interpretation

Express propositions in source-matched passages from judgments citing this section.

0

No judgment in the current Wakilii corpus expressly cites this section. Bare rule-number references are not assigned where the Order cannot be verified.

Related provisions

No express internal or cross-Act reference appears in this section.

Amendment notes

No section-specific amendment note or instrument-level amendment history appears in this consolidation.

Authority status: legislation is primary authority; judgment weight follows the displayed court level and the ratio caveat. Check version history
1. Financial Institutions Act, Act No.2 of

The text of this section isn't in the consolidation we hold — see the original PDF above.

2. Financial Institutions (Capital Adequacy Requirements)

Regulations, S.I No. 42 of 2005

3. Financial Institutions (Corporate Governance) Regulations, S.I

No 47 of 2005

4. Financial Institutions (Credit Classification and Provisioning)

Regulations, S.I No. 43 of 2005

5. Financial Institutions (Insider-Lending Limits) Regulations, S.I

No.45 of

6. Financial Institutions (Licensing)Regulations, S.I No. 41 of

The text of this section isn't in the consolidation we hold — see the original PDF above.

7. Financial Institutions (Limit on Credits Concentration

and Large Exposures) Regulations, S.I No. 44 of

8. Financial Institutions (Liquidity)Regulations, S.I No. 46 of

The text of this section isn't in the consolidation we hold — see the original PDF above.

9. Financial Institutions (Ownership and Control) Regulations,

S.I No 48 of 2005

PROFESSOR EMMANUEL TUMUSIIME-MUTEBILE, Governor, Bank of Uganda.

Original Laws of Uganda consolidation (as at 2 February 2018) — public-domain legislation, consolidated by ULII / Laws.Africa (CC BY 4.0). This is a point-in-time text and may not reflect later amendments; confirm against the latest Uganda Gazette before relying on it.