Members of parliament want special consideration from the telecommunications companies to increase their daily mobile money transaction limit from the current Shs 7 million to Shs 20 million.
The MPs presented the proposal when managers of MTN Uganda, Airtel and Uganda Telecom appeared before the parliamentary finance committee to submit views on the National Payment Systems Bill, 2019, a piece of legislation that seeks to regulate Real-Time Cross Settlement System (RTCS) for interbank transfers, automated clearing house system for cheques, Electronic Funds Transfers as well as digital and electronic money services.
Committee chairperson Henry Musasizi lauded the telecoms for overseeing the mobile money platform which he says has expanded financial inclusion in rural areas. Records show that there are 26.4 million mobile money subscribers in Uganda today, compared to 13 million bank accounts spread amongst the 24 commercial banks in the country.
Musasizi argued that MPs are big mobile money users because the platform has eased their transactions with constituents. He thereafter asked whether the telecom companies can provide special consideration to enable them to make a maximum of Shs 20 million via mobile money.
Musasizi says that during the peak season of electioneering, MPs from rural constituencies increase their daily transactions with constituents who use their mobile money accounts like bank accounts. Kibanda South MP, Jack Odur Lutanywa supported the proposal but hastened to add that the increase should apply to every Ugandan and not only MPs.
Airtel Legal and Regulatory director, Dennis Abigaba Kakonge said that it is possible only if MPs apply for due consideration to get a higher daily transaction maximum limit.
Meanwhile, MTN CEO, Wim Vanhelleputte said that revising mobile money transaction limits is not standard practice but it is only available for clients eligible for “enhanced Know Your Customer (KYC)".
MTN acting general manager Risk and Compliance Samuel Gitta explained that under the arrangement, the company assesses the applicant's risk exposure to money laundering and terrorist financing risk and successful individuals are given different daily transaction limits.
Committee chairperson Henry Musasizi lauded the telecoms for overseeing the mobile money platform which he says has expanded financial inclusion in rural areas. Records show that there are 26.4 million mobile money subscribers in Uganda today, compared to 13 million bank accounts spread amongst the 24 commercial banks in the country.
Musasizi argued that MPs are big mobile money users because the platform has eased their transactions with constituents. He thereafter asked whether the telecom companies can provide special consideration to enable them to make a maximum of Shs 20 million via mobile money.
Musasizi says that during the peak season of electioneering, MPs from rural constituencies increase their daily transactions with constituents who use their mobile money accounts like bank accounts. Kibanda South MP, Jack Odur Lutanywa supported the proposal but hastened to add that the increase should apply to every Ugandan and not only MPs.
Airtel Legal and Regulatory director, Dennis Abigaba Kakonge said that it is possible only if MPs apply for due consideration to get a higher daily transaction maximum limit.
Meanwhile, MTN CEO, Wim Vanhelleputte said that revising mobile money transaction limits is not standard practice but it is only available for clients eligible for “enhanced Know Your Customer (KYC)".
MTN acting general manager Risk and Compliance Samuel Gitta explained that under the arrangement, the company assesses the applicant's risk exposure to money laundering and terrorist financing risk and successful individuals are given different daily transaction limits.
"At a certain regular routine, we profile all our customers their money laundering and terrorist financing risk and attach an equivalent of KYC due diligence requirement. So, if a customer comes and they want to open a betting service, we have a valid due diligence report. If a customer comes and they want a remittance service we have enhanced due diligence. Even MPs if they do so wish to increase their limits, we do take their request and subject it to enhanced KYC or enhanced due diligence and if they meet that due diligence…we grant higher limits," said Gitta.
The Financial Intelligence Authority requires everyone involved in the financial industry must be subjected to due diligence in line with the Anti-Terrorism Act and Anti Money Laundering Act so that people with high-risk ratings are not considered for enhanced transaction limits.
The Financial Intelligence Authority requires everyone involved in the financial industry must be subjected to due diligence in line with the Anti-Terrorism Act and Anti Money Laundering Act so that people with high-risk ratings are not considered for enhanced transaction limits.