Micro-Finance Deposit-Taking Institutions (Registered Societies) Regulations

These Regulations may be cited as the Micro-Finance Deposit-Taking Institutions (Registered Societies) Regulations, 2023.

These Regulations apply to a registered society which provides financial services among its members and has- (a) the voluntary savings in excess of one billion five hundred million shillings; and (b) the institutional capital above five hundred million shillings.

In these Regulations, unless the context otherwise requires- ''Act'' means the Micro-Finance Deposit-Taking Institutions Act, 2003; ''currency point'' has the meaning assigned to it in Schedule 1 to these Regulations;

''financial services'' means accepting savings from and providing loans to members of a registered society; "general provisions" means loan loss reserves held against future and presently unidentified losses that are freely available to meet losses which subsequently materialise; ''institutional capital'' means disclosed reserves and retained earnings all of which are not meant to be expended unless on liquidation of the registered society; ''licence'' means a licence granted under regulation 8 of these Regulations; ''member'' means a person who subscribes to a registered society in accordance with the byelaws of a registered society; ''non-performing loan'' means a loan classified as non- performing under regulation 18; "refinance" means providing an amount of loan funds in addition to the original loan amount; ''Registrar'' means the Registrar of Cooperatives as defined under Cooperatives Societies Act; "restructured loan" means a loan which has been refinanced, rescheduled, rolled over or otherwise modified due to the inability of the borrower to repay on agreed time; "specific provisions" means loan loss reserves held against presently identified losses or potential losses and which are not available to meet other losses, which subsequently materialise; "voluntary savings" means a sum of money that is deposited by a member with a registered society that can be withdrawn on demand or at an agreeable future date.

A registered society which is licensed under these Regulations shall, where applicable, include the words ''Savings and Credit Cooperative Society'' or ''SACCO'' in its name.

A registered society may, with the approval of the Central Bank, establish a branch office

these Regulations

A registered society shall transfer any unclaimed balances of a member to the Central Bank in accordance with section 83 of the Act

A registered society shall evaluate the status of the collateral on any loan at the time of advancing the loan, during the servicing of the loan and at the time of foreclosure

A registered society that is eligible under regulation 2 that seeks to provide financial services amongst its members shall apply for a licence in accordance with these Regulations within twelve months from the commencement of these Regulations ________

SCHEDULES

SCHEDULE 1

CURRENCY POINT

Regulation 3

A currency point is equivalent to twenty thousand shillings

SCHEDULE 2

FEES

Regulation 4(3) (e), 8(4), 8(5)

No. Types of fees Amount (Uganda Shillings)

SCHEDULE 3

FORMS

FORM-A Regulation 4(2)

APPLICATION FOR A LICENCE

Street.................................................................................................. Building................................................................................................. Trading centre / Town Council..............................................................

Telephone Nos.

e-mail address ……………………………………………………… Website………………………………………………………………..

............................................................................................................... ............................................................................................................... ............................................................................................................... ...............................................................................................................

............................................................................................................... ...............................................................................................................

has it ever held any authority from a supervisory body to carry on any business activity in Uganda or elsewhere? ............................................................................................ ...............................................................................................................

If yes, give particulars ............................................................................................................... ...............................................................................................................

If any such authority has been revoked, give particulars. ............................................................................................................... ............................................................................................................... ..........................................................................……………………....

under receivership in the past or made any compromise or arrangement with its creditors in the past or otherwise failed to satisfy creditors in full? ............................................................................................................... If yes, give particulars........................................................................... ............................................................................................................... .......................................................................................………………

an inspector or other authorised officer of any government ministry department or agency, professional association or other regulatory body investigating the affairs of the registered society or has such an investigation ever previously taken place into the affairs of the institution? ............................................................................................................... ............................................................................................................... ..............................................................................................................

registration to any professional body or trade association concerned with financial activities or decided not to apply for entry after making an approach? ................................. .............................................................................................................. If yes, give particulars ............................................................................................................... ...............................................................................................................

does it expect to be engaged in Uganda or elsewhere, in any litigation which may have a material effect on the resources of the registered society? .............................................................................................................. .............................................................................................................. If yes, give particulars ............................................................................................................... ............................................................................................................... ..............................................................................................................

does it expect to be engaged in any business relationship with any of its officers, Directors or members? ............................................................................................. ............................................................................................................... If yes, give particulars ............................................................................................................... ...............................................................................................................

in this format if lengthy) Name Nationality Address Shareholding No. of Amount % of shares (UShs.) total

Total Capital

in this format if lengthy) (a) Directors Date of Name Nationality Address Other election

We, the undersigned, being officers of the registered society, declare that to the best of our knowledge and belief, the information contained herein is complete and accurate. Chairperson..........................................................................................(Name)

Signature........................................................ Date........................................

Director ...............................................................................................(Name)

Signature........................................................ Date........................................

FORM B Regulation 4(3)(k) Personal Declaration Form

CRITERIA FOR DETERMINING PROFESSIONAL AND MORAL SUITABILITY OF PROPOSED DIRECTORS OR MANAGERS OF A REGISTERED SOCIETY LICENCED UNDER THE MICRO FINANCE DEPOSIT-TAKING INSTITUTIONS ACT, 2003 (This form is to be completed by all persons proposed as Director, Chief Executive or Senior Management, of a registered society)

NB: (a) Read the declaration in section 7 below before completing this form. (b) In case the space provided is inadequate, attach additional information on separate pages.

............................................................................................................... .............................................................................................................. ..............................................................................................................

Other names ................................................................................

3.1 Balance sheet Amount in Amount in Assets Liabilities Shs. Shs. Checking accounts in Loan from financial banks institutions Other deposits in Outstanding bills financial institutions Shares, bonds and Outstanding taxes securities Bills for collection Credit cards

Immovable asset Others (describe) (rural and urban) Vehicles, ships, and aircraft Machinery Cattle Agricultural land Others: Goods and merchandise Others (describe) 1 Total liabilities Net: Equity (assets - 2 liabilities Total liabilities and Total assets equity

3.2 Risks (guarantees for third party obligations) Type of Institution Amount in Shs. Financial Institutions Companies: commercial and industrial Other guarantees

3.3 Annual income and expenditure Amount in Income Expenditure Amount in Shs. Shs. Cash Salary General expenses Rents Repayments: Incomes debts, liabilities Other income (describe)

Total Income Total expenditure Surplus (Deficit) (If more space is required attach another page)

Name of Positions Responsibilities Employer/ Reasons Person held and (where business and for leaving dates applicable) address

IN UGANDA AND ABROAD

5.1 Shareholding (Directly owned or through nominees) Company's Amount %age of Past Date of shareholding name/any of share- share- Remarks incorporation other entity holding holding A B

A. Refers to date of closure or surrender of shares B. Refers to reasons for closure or surrender

5.2 Directorship Past Company's Executive Position held shareholding Date of name/ any or Non- in case of Remarks appointment other entity Executive Executive C D

C. Refers to date of retirement D. Refers to reasons for retirement

5.3 Professional Bodies Past club Name of Membership Position membership Remarks Body Number held (If any) E F

E. Refers to date of retirement F. Refers to reasons for retirement 5.4 Social Clubs Past club Name of Membership Position membership Remarks Body Number held (If any) G H

G. Refers to date of retirement H. Refers to reasons for retirement

5.5 Borrowing Loan/facility 1 2 3 4 5 Name of lending institution Type of facility Amount borrowed Date of offer Security offered Value of security Current outstanding balance Remarks

6.0. ADDITIONAL INFORMATION 6.1 Have you or any entity with which you are associated as director, shareholder or manager, ever held or applied for a licence or equivalent authorisation to carry on any business activity in any country? .......................................................................................................... ......................................................................................................... If yes, give particulars ......................................................................................................... .........................................................................................................

If any such application was rejected or withdrawn after it was made, or any authorisation revoked, give particulars: ........................................................................................................ ........................................................................................................ ........................................................................................................

6.2 Have you at any time been convicted of any criminal offence in any jurisdiction? .......................................................................................................... ..........................................................................................................

If yes, give particulars of the court in which you were convicted, the offence, the penalty imposed and the date of conviction .......................................................................................................... .......................................................................................................... ..........................................................................................................

6.3 Have you, or any entity with which you have been involved, been censured, disciplined, warned as to future conduct, or publicly criticised by a regulatory authority or any professional body in any country? .......................................................................................................... ..........................................................................................................

If yes, give particulars ......................................................................................................... ........................................................................................................ .........................................................................................................

6.4 Have you, or has any entity with which you are, or have been associated as a director, shareholder or manager, been the subject of an investigation, in any country, by a Government department or agency, professional association or other regulatory body? ......................................................................................................... ........................................................................................................

If yes, give particulars. .......................................................................................................... .......................................................................................................... ....................................................................................................

6.5 Have you, in any country, ever been dismissed from any office or employment, been subject to disciplinary proceedings by your employer or barred from entry of any profession or occupation? .......................................................................................................... .......................................................................................................... If yes, give particulars .......................................................................................................... .......................................................................................................... ..........................................................................................................

6.6 Have you failed to satisfy a debt adjudged due and payable by you on order of a court, in any country, or have you made any compromise arrangement with your creditors within the last 10 years? .......................................................................................................... ..........................................................................................................

If yes, give particulars. .......................................................................................................... .......................................................................................................... ....................................................................................................

6.7 Have you ever been declared bankrupt by a court in any country or has a bankruptcy petition ever been served on you? .......................................................................................................... .........................................................................................................

If yes, give particulars ........................................................................................................ ........................................................................................................ ........................................................................................................

6.8 Have you ever been held liable by a court, in any country, for fraud or other misconduct? ................................................................................. ...............................................................................................................

If yes, give particulars .............................................................................................................. .............................................................................................................. ..............................................................................................................

6.9 Has any entity with which you were associated as a director, shareholder or manager in any country made any compromise or arrangement with its creditors, been wound up or otherwise ceased business either while you were associated with it or within one year after you ceased to be associated with it? ............................................................................................................... ...............................................................................................................

If yes, give particulars ......................................................................... .............................................................................................................. .............................................................................................................. ...............................................................................................................

6.10 Are you presently, or do you, other than in a professional capacity, expect to be engaged in any litigation in any country? .............................

If yes, give particulars ..................................................................... ......................................................................................................... ......................................................................................................... .........................................................................................................

6.11 Indicate the names, addresses, telephone numbers and positions of three individuals of good standing who would be able to provide a reference on your personal and professional integrity. The referees must not be related to you, and should have known you for at least five years. ............................................................................................................... ............................................................................................................... ..........................................................................……………................

6.12 Is there any additional information which you consider relevant for the consideration of your suitability or otherwise for the position(s) held / to be held? (The omission of material facts may represent the provision of misleading information) ...............………………………. ............................................................................................................... ...............................................................................................................

N.B. This information given in response to this questionnaire shall be kept confidential by the Bank of Uganda, except in cases provided for by law.

I am aware that under regulation 4(5) of these regulations any information submitted in connection with an application for a licence which is false, or misleading shall constitute sufficient grounds for rendering a proposed director, or senior manager, or the registered society unfit and not proper and for rejecting an application.

I certify that the information given above is complete and accurate to the best of my knowledge, and that there are no other facts relevant to this application of which the supervisory authority should be aware.

I undertake to inform the Bank of Uganda of any change material to the application that occurs while the application is under consideration.

NAME....................................POSITION (held or to be held) ..........................

DATE: This day............... of Month…………………….in the Year…..........

Signature: .......................................................................................................

BEFORE ME: COMMISSIONER FOR OATHS/MAGISTRATE

Name................................................................................................................

.........................................................................................................................

Signature .........................................................

Address ..................................................................................

FORM C Regulation 5(2) PUBLIC ANNOUNCEMENT OF APPLICATION FOR A REGISTERED SOCIETY LICENCE (Form to be used by a registered society and to be published in a daily newspaper of wide circulation) In accordance with Regulation 5 (2) of the Micro-Finance Deposit-Taking Institutions (Registered Society) Regulations, 2023; this is to inform the public that an application for a licence has been submitted to the Bank of Uganda.

shares with a nominal value of UShs. ...................................... each.

members in accordance with Section 7(1a) of the Micro Finance Deposit-Taking Institutions Act, 2003 (Each registered society should describe its intended area of operation and target customers)

(names, principal business, domicile) ............................................................................................................. ............................................................................................................. ............................................................................................................. Persons that have reasonable objections against the application may submit the objections in writing to the Bank of Uganda within fourteen days after this announcement has been published, by a confidential note which shall be sent to: The Executive Director, Supervision Directorate, Bank of Uganda, P.O. Box 7120, Kampala. All information will be treated with utmost confidentiality. DATE: ...........................................

SCHEDULE 4

FORM - RS 100 Regulation 13(4),27(2)(a)

BANK OF UGANDA MONTHLY STATEMENT OF ASSETS AND LIABILITIES FOR REGISTERED SOCIETY NAME OF REGISTERED SOCIETY ........................................................... BRANCH NETWORK Number of branches; ...................................................................................... Other Locations............................................................................................... MONTH ENDING.......................................................................................... To be submitted not later than the 15th day of the month following that to which it refers. To: The Director, Non-Bank Financial Institutions Department, Bank of Uganda, P.O. Box 7120, Kampala

Total Current Membership Male Female Institutions Groups

Amounts in ASSETS Shs. '000s'

1 Notes and Coins 2 Balances with Bank of Uganda 3 Bank of Uganda Securities 4 Central Government Securities

5 Other Securities (Non-Central Government Securities) 6 Deposits (Line items 7 and 8) 7 Demand Deposits with Financial Institutions Savings and Time (Fixed) Deposits with Financial 8 Institutions 9 Mobile Money Float 10 Loans to Financial Institutions Loans and Administered Advances (Gross) (Line items 11 12 and 13) 12 Gross Loans 13 Gross Administered Loans 14 Loan Loss Reserves (Line items 15 and 16) 15 Specific Provisions 16 Interest In Suspense 17 Net Loans Outstanding (Line items 11 less 14) 18 Equity Investments / Shares 19 Gross Fixed Assets (Line items 20 to 22) 20 Land and Buildings 21 Furniture, Motor Vehicle, Equipment 22 Other Fixed Assets 23 Accumulated Depreciation 24 Net Fixed Assets (Line items 20 less 24) 25 Intangible Assets (net) Net Due from Own Offices in Uganda for Items In 26 Transit 27 Due From Other Banks / Saccos for Items In Transit 28 Other Assets 29 Total Assets (Line items 1 to 6, 9, 10, 17, 18, 24 to 28)

Amounts in LIABILITIES Shs. '000s'

30 Voluntary Savings (Line items 31 to 33) 31 Savings 32 Time Deposits 33 Certificate of Deposit 34 Compulsory Savings

35 Borrowings (Line items 36 to 38) 36 Government 37 Bank of Uganda 38 Due from Financial Institutions 39 Due from other resident sectors 40 Due from other nonresident sectors 41 Administered Funds 42 Grants / Donations/ Deferred Income 43 Net Due to Own Offices In Uganda For Items In Transit 44 Other Liabilities 45 Total Liabilities (Line items 30,34, 35, 41 to 44)

CAPITAL Members Share Capital (Members Share Capital Per 46 Bylaws) 47 Share Premium 48 Retained Earnings/Deficits 49 Revaluation Reserves 50 General Provisions 51 Other Reserves (Specify) 52 Year-to-Date Profit/Loss (after tax) 53 Total Capital (Line items 46 to 52) 54 Total Liabilities and Capital (Line items 45 and 53) Amounts in Shs. OFF BALANCE SHEET ITEMS '000s' 55 Contingent Claims 56 Guarantees 57 Performance Bonds 58 Other Off Balance Sheet items Total Off Balance Sheet items (Line 59 items 55 to 58)

A. Other Assets (list required if other assets exceed 5 percent of the total assets)

No. Item Amount (Shs.'000)

Total

B. Minimum and Maximum Interest Rates on member savings

Type Minimum Maximum Ordinary Savings Long-term/fixed savings Total

C. Lending Rates* 10- 15- 20- 25- 30- Over Sector 14.99% 19.99% 24.99% 29.99% 34.99% 30% Agriculture Trade and commerce Personal consumption Other(specify) Total *Interest rates should refer to the reporting period only.

D. Other Liabilities (list required if other liabilities exceed 5 percent of the total liabilities)

No. Item Amount (Shs.'000)

Total

SCHEDULE 5

FORM - RS 100 A Regulation 27(2)(b)

COMPUTATION OF CAPITAL ADEQUACY (To be submitted together with RS100 as at same reporting date)

NAME OF REGISTERED SOCIETY............................................................

MONTH ENDING...........................................................................................

Amount (Shs. Ref No. '000) CAPITAL COMPONENTS 1.0 CORE CAPITAL 1.1 Members Share Capital 1.2 +Share Premium 1.3 +Retained Earnings/Deficits 1.4 +Year-to-Date Profit/Loss after tax( 50% ) 1.5 +General reserves /provisions 1.6 +Other reserves (-) Less, Investments in Subsidiary and Equity 1.7 instruments of other Institutions 1.8 (-) Less, Other Deductions - Core Capital (Line items 1.1, 1.9 1.2,1.3,1.4,1.5,1.6,1.7 and 1.8) 2 Institutional Capital (1.0 Less (1.1 and 1.2)) - 3 Total Assets (Per Balance Sheet) 4 Off-Balance Sheet Assets 5 CAPITAL RATIO CALCULATIONS Total Asset value of on-balance sheet items as per 5.1 3 above Total value of off-balance sheet items as per 4 5.2 - above

Total Assets for capital adequacy computation 5.3 - (5.1 + 5.2) 5.5 Core capital to Assets Ratio (1.9/5.3)% Minimum Core Capital to Assets Ratio 5.6 10% Requirement 5.7 Excess (deficiency) (5.4 less 5.6)

_____________________________ CHIEF EXECUTIVE OFFICER Date……………………

SCHEDULE 6 FORM - RS 110 Regulation 27(2)(c) BANK OF UGANDA MONTHLY STATEMENT OF COMPREHENSIVE AND OTHER INCOME FOR REGISTERED SOCIETY

NAME OF REGISTERED SOCIETY .......................................................... BRANCH NETWORK Number of branches; ...................................................................................... MONTH ENDING.......................................................................................... To be submitted not later than the 15th day of the month following that to which it refers. To: The Director, Non-Bank Financial Institutions Department, Bank of Uganda, P.O. Box 7120, Kampala Amount (Shs. '000) Current Year-to- month date 1 CREDIT INCOME (Lines 2, 3 and 4) 2 Interest income from loans 3 Loan fees 4 Late loan fees 5 Other income (Line items 6 and 7) 6 Income from investments 7 Income from other financial services 8 Gross financial income (Sum of line items 1 and 5) Gross financial expenses of lending funds (Line 9 items 10 and 11) 10 Interest and fee expenses on debt(borrowing) 11 Interest expense on member savings 12 Provisions for non-performing loans

Net financial income (Line item 8 less line items 9 13 and 12) 14 Operating expenses (Line items 15 to 20) 15 Salaries and benefits 16 Administrative expenses 17 Rent and utilities 18 Travel and transport 19 Depreciation 20 Other operating expenses Net income (Loss) from operating (Line item 13 less 21 line item 14) Grant income for Financial services (Line items 23 22 to 26) 23 Grant income for the loan fund 24 Grant income for fixed assets 25 Grant income for operations 26 Unrestricted grant income Grant income for Non-Financial services (Line items 27 28 to 30) 28 Grant income for fixed assets 29 Grant income for operations 30 Unrestricted grant income 31 Income from non-financial services 32 Operating expenses on non-financial services Net operating profit /Loss from non-financial 33 services (Line item 31 less line item 32) Net profit /Loss for the period (Sum of Line items 34 21, 22, 27 and 33) 35 Tax 36 Dividends Retained earnings (Line item 34 less line items 35 37 and 36)

SCHEDULE 7 FORM - RS 120 Regulation 27(2)(d) BANK OF UGANDA MONTHLY SCHEDULE OF PROVISIONS FOR BAD DEBTS

Name of the Registered Society……………………………………………..

Month ending………………………………………………………………..