Business 28 April 2026 Daily Monitor (Uganda)
IRA Directs Insurers to Strengthen Defenses Against Money Laundering and Terrorism Financing
Uganda's Insurance Regulatory Authority (IRA) has issued a directive requiring all licensed insurers and intermediaries to enhance their internal policies using a risk-based approach to combat money laundering and terrorism financing. The focus is on high-risk products like life insurance with investment components, annuities, and single premium policies. Source: https://www.monitor.co.ug/uganda/business/insurance/insurers-on-alert-as-ira-tightens-grip-on-illicit-finance-5439104
The Insurance Regulatory Authority (IRA) has issued a circular on March 17, 2026, urging all licensed insurers and intermediaries to thoroughly review and strengthen their internal policies and procedures. This move aims to prevent the sector from being exploited for money laundering or terrorism financing.
Players must adopt a risk-based approach in line with Section 120 of the Insurance Act and the Anti-Money Laundering Act Cap 118. They are required to perform periodic document reviews and maintain enterprise-wide risk assessments, particularly for vulnerable products such as life insurance policies with investment components, annuity contracts, and single premium policies.
Insurers must conduct anti-money laundering and terrorism financing risk assessments before launching new products, business practices, or technologies. Customer categorization is mandatory based on factors like occupation, source of wealth, geographical location, and beneficial ownership. High-risk customers require verification of wealth and fund sources.
For investments in non-traded assets or entities in non-equivalent jurisdictions, detailed risk assessments must be documented. Transactions should be monitored against customer risk profiles, with records retained for at least five years post-relationship.
Company boards and senior management are tasked with approving these risk assessments, ensuring they stay current through periodic reviews or after significant events.
This directive addresses growing concerns that life and investment-linked insurance products are attractive targets for criminals seeking to legitimize illicit funds.