This Statute was repealed on 2004-03-26 by Financial Institutions Act, 2004.
Financial Institutions Act
- Commenced on 14 May 1993
- [This is the version of this document at 31 December 2000.]
- [Note: The version of the Act as at 31 December 2000 was revised and consolidated by the Law Reform Commission of Uganda. All subsequent amendments have been researched and applied by Laws.Africa for ULII.]
- [Repealed by Financial Institutions Act, 2004 on 26 March 2004]
Part I – Preliminary
1. InterpretationIn this Act, unless the context otherwise requires—
2. Application of the Act
Part II – Licensing
3. Licensing of financial institutions
4. Application for a licence
5. Factors to be considered when granting a licenceThe central bank shall, in considering an application for a licence under section 4, require to be satisfied to—
6. Processing of applications
7. Licence feeThe applicant shall, upon being granted a licence under this Act, pay a fee to be prescribed by the central bank; and the holder of the licence shall thereafter pay a fee to be prescribed by the central bank on or before each anniversary of the granting of the licence.
8. Duration of licence, etc.
9. Failure to commence operationsA licensed financial institution which fails to commence operations within twelve months from the date of issue of the licence shall have its licence revoked.
10. Revocation of licenceThe central bank may, at any time, in consultation with the Minister, revoke a licence of a financial institution if it is satisfied that the financial institution —
Part III – Capital requirements
11. Minimum capital requirements for financial institutions
12. Ongoing capital adequacy requirements
13. Review of minimum capital requirementsThe central bank may, with the approval of the Minister, from time to time, review the minimum capital requirements by statutory instrument as circumstances warrant.
14. Minimum holdings of liquid assets
15. Computation of minimum amount of liquid assets
16. Control of the foreign exchange holdingsThe central bank may fix or prescribe the manner of determination of the maximum working balances which financial institutions may respectively hold in foreign currencies generally or in any specified foreign currency and may, at any time, require any financial institution to sell to the central bank all or any specified part of the surplus in excess of that maximum amount.
Part IV – Restrictions and prohibitions on financial institutions
17. Advances, credits and guarantees
18. Trade, investments and immovable property
Part V – Supervision
21. Books and accounts to be kept in EnglishAll entries in any books and all accounts to be kept by a financial institution shall be kept and recorded in the English language using the system of numerals employed in Government accounts.
22. Appointment of an auditor by a financial institution
23. Appointment of an auditor by the central bankWhere a financial institution fails to appoint an auditor under section 22 or fails to fill a vacancy for the auditor, or where the central bank is not satisfied with the audit report in respect of a financial institution, the central bank may appoint an auditor for, and shall fix the remuneration to be paid to the auditor by, that financial institution.
24. Accessibility to books, etc.An auditor appointed under section 22 or 23 shall have a right of access at all times to such books, accounts, vouchers and securities of the financial institution and shall be entitled to receive from the officers and staff of the financial institution such information and explanations as he or she may require to perform his or her duties.
25. Responsibilities of the auditor to the central bank
26. Information to be furnished by financial institutions
27. Inspection of financial institutions
28. Powers of the central bank to issue orders after inspection
Part VI – Liquidation, seizure and reorganisation
31. Management of a seized financial institution
Part VII – The Deposit Insurance Fund
33. Establishment of the fund
34. Contributors and contributions to the fund
35. Protection of deposits and payments out of the fund
36. Power of the central bank to lendIf the central bank considers it desirable to reduce risk or avert threatened loss to the fund, the central bank may, on such terms and conditions as it may prescribe, lend, place a deposit or issue a guarantee or purchase the assets of a financial institution.
37. Annual report of the central bank’s activities
Part VIII – Miscellaneous
38. Branches, etc.
40. Restriction on transfer of shares
41. Mortgages, liensFor the avoidance of doubt, a financial institution may accept a lien on crops, animals or other chattels as collateral security for loans and overdrafts.
42. Unclaimed balances
43. Disqualification of officers
44. Officers deemed public officersAn officer or servant of a financial institution shall be deemed to be a person employed in the public service for the purposes of sections 87, 89 and 93 of the Penal Code Act.
45. Obligations under the Companies Act, etc.Nothing in this Act shall be deemed to relieve a financial institution from any of its obligations under the Companies Act or the Building Societies Act.
46. Use of the word “bank”
47. Examination of persons suspected of doing banking business, etc.Whenever the central bank has reasonable grounds leading it to believe that any person is transacting banking or credit institution or building society business without a licence, it shall have the power to examine the books of account and records of that person in order to ascertain whether or not that person has violated or is violating any provisions of this Act; and any refusal to submit the books, accounts and records shall be prima facie evidence of the fact of operation of banking or, as the case may be, credit institution business or building society business, without a licence.
48. Protection of the central bank, etc.No suit or other legal proceedings shall lie against the central bank or any officer of the central bank for anything which is done or is intended to be done in good faith pursuant to the provisions of this Act.
49. Declaration of bank holidays
50. Nonapplication of the Interpretation ActSections 37 and 38 of the Interpretation Act shall not apply to this Act.
51. RegulationsThe central bank may, in consultation with the Minister responsible for finance, make regulations —
52. Offences and penalties
53. Act to take precedence over other Acts that relate to banking. etc.For purposes of banking, credit institutions and building societies business, this Act shall take precedence over any legislation relating to financial institutions, and in case of conflict this Act shall prevail.
History of this document
26 March 2004
Repealed by Financial Institutions Act, 2004
14 May 1993