The Uganda Bankers’ Association has issued guidelines on how to mitigate fraud within Uganda’s financial sector with one of the proposals entailing all commercial banks to blacklist customers, staff, and collaborators convicted of fraud.
The revelation was made by Sarah Arapta, the Association’s chairperson while unveiling the Banking Industry Guidelines on Mitigation of Fraud (BIGF) in Kampala.
She defended the proposal to cut off individuals and companies found guilty of fraud from Uganda’s financial institutions on grounds that fraud is a significant threat not only to the financial services but also to the wider economy since it poses grave challenges to its stability, credibility, and public trust.
Michael Atingi-Ego, Deputy Governor, Bank of Uganda in his remarks welcomed the guidelines and further called on players in the banking sector to ensure that the guidelines are effectively implemented to uphold the integrity of Uganda’s banking sector
“The Bank of Uganda aims to hold the integrity of public institutions and maintain public trust in the banking system. The guidelines that we are launching today are therefore very important milestones but they only mark the beginning,” he said.
The Association noted that before an individual or company is added to the blacklist, they must have been confirmed to have aided or abetted a cybercrime affecting a BIGF member and confirmation shall include validated reports or data obtained from the courts of law in Uganda.
According to Uganda Bankers’ Association, the new guidelines will; enhance collaboration, expedite investigations, and enable a more proactive approach to combat fraud, strengthen fraud prevention measures within financial institutions by providing guidance on risk assessment, fraud detection, among others.
