Section 44: High risk countries

(1) The Authority shall identify high-risk countries in respect of money laundering and terrorism financing and shall prescribe, by notice in the Gazette, measures to be applied by accountable persons in respect of a person or customer from, or transactions involving, those countries. (2) For the purposes of subregulation (1), the measures shall include- (a) applying specific elements of enhanced due diligence such as obtaining additional information on the customer, purpose of transactions, nature of the business relationship and the source of funds or wealth of the customer; (b) obtaining senior management approval to continue the relationship; (c) increased monitoring of transactions; (d) reviewing, amending and if necessary, terminating of correspondent banking relationships. (3) The Authority may also require a supervisory authority to take certain actions with respect to countries identified as high risk including- (a) imposing additional reporting requirements on accountable persons; (b) refusing the establishment in Uganda of subsidiaries or branches or representative offices of accountable person from that country; (c) prohibiting accountable person from establishing branches or representative offices in the country identified by the Authority; (d) requiring accountable persons to limit business relationships or financial transactions with the country or persons in that country; (e) increasing supervisory examinations or external audit requirements for branches and subsidiaries in Uganda of accountable persons from the country identified; and (f) requiring increased external audit requirements by accountable persons of their branches and subsidiaries located in the country identified.