Financial Institutions Act No. 2

Uganda

(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.