Section 9: Agency agreement

(1) A microfinance deposit-taking institution approved to conduct agent banking shall enter into a written agreement with each agent before the agent conducts business on behalf of the microfinance deposit-taking institution. (2) A person shall not offer microfinance services on behalf of a microfinance deposit-taking institution without a valid agency agreement. (3) An agency agreement under subregulation (1), shall - (a) specify the liability of any acts or omissions of the agent to the extent of the agent's express or implied authority, to be bom by the microfinance deposit-taking institution; (b) set out the services to be provided by the agent; (c) set out the activities the agent is prohibited from engaging in; (d) provide for the remuneration arrangement; (e) set out the anti-money laundering and countering the financing of terrorism arrangements including a requirement for an agent to report suspicious transactions to the microfinance deposittaking institution; (f) provide the responsibilities and liabilities of the agent and the microfinance deposit-taking institution; (g) require that all information or data the agent collects in relation to agent banking is property of the microfinance deposit-taking institution and subject to data protection requirements; (h) provide for the power of the Bank of Uganda to access any information, systems and premises related to the agent; (i) set out transaction limits of the agent; (j) specify the terms and conditions of termination of the agency agreement; (k) provide that the Bank of Uganda can direct the termination of the agreement as it deems appropriate; (1) set out a transitional clause on rights and obligations of the microfinance deposit-taking institution and the agent upon termination or cessation of the agency agreement; and (m) specify that employees of the agent shall not be treated as employees of microfinance deposit-taking institution.