AML/CFT Customer Due Diligence Guidelines for DNFBPs
The Customer Due Diligence (CDD) Guidelines for Designated Non-Financial Businesses and Professions (DNFBPs), issued by the Financial Intelligence Authority (FIA), provide a comprehensive framework to help these sectors comply with Uganda’s Anti-Money Laundering (AML) and Counter Financing of Terrorism (CFT) regulations.
The guidelines outline the minimum standards DNFBPs must meet to effectively identify, verify, and monitor their customers to mitigate risks associated with money laundering and terrorist financing including:
- Risk-Based Approach (RBA): DNFBPs must assess the risks of their customers and business relationships to apply appropriate due diligence measures, such as Enhanced Due Diligence (EDD) for high-risk customers and Simplified Due Diligence (SDD) for low-risk ones.
- Customer Identification and Verification: Detailed procedures are provided for identifying beneficial owners, politically exposed persons (PEPs), and customers engaged in high-risk activities.
- Ongoing Monitoring: DNFBPs must continuously monitor transactions to detect suspicious activity and update customer information.
- Compliance Obligations: DNFBPs must follow local and international AML/CFT standards, including maintaining records for a minimum of 10 years and submitting Suspicious Transaction Reports (STRs) to the FIA.
This guideline is meant to support DNFBPs in safeguarding their operations, protecting the integrity of Uganda’s financial system, and ensuring compliance with regulatory standards.