From CapeNews.Net By ELIZABETH W. SAITO August 8, 2014 Forty years ago today, President Richard M.
Financial Institutions Act No. 2
(enacted in 2004)
Financial Institutions Act No. 2 of 2004 regulates and controls financial institutions within Uganda.
This act is divided into the following fourteen parts:
- Part I Preliminary: defines language within this act;
- Part II Licensing: describes the procedures for applying for a license and lays out the responsibilities and duties of applicable financial institutions;
- Part III Shareholding in Financial Institutions;
- Part IV Capital Requirements: addresses the minimum and ongoing capital requirements for financial institutions;
- Part V Prohibitions and Restrictions: states the prohibitions and restrictions on financial activities, such as lending, credit concentration, and insider transactions;
- Part VI Accounts and Financial Statements;
- Part VII Corporate Governance: explains the duties and responsibilities of the institution, board meetings, removal of directors, auditing, and other matters related to corporate governance;
- Part VIII Supervision: includes inspections of financial institutions and information to be provided by financial institutions;
- Part IX Corrective Actions: addresses topics such as management take-over, powers of the central bank, and duties of a statutory manager;
- Part X Receivership: explains options available to a receiver and placing a financial institution under receivership;
- Part XI Liquidation: explains the process of liquidation and powers of the liquidator;
- Part XII The Deposit Protection Fund: addresses the establishment of the deposit protection fund, contributions to the fund, and protection of deposits and payments out of the fund;
- Part XIII Amalgamations, Arrangements, and Affected Transactions; and
- Part XIV Miscellaneous.