The Bank of Uganda has announced a new mandate requiring ID verification for all digital transactions over one million Uganda shillings. The directive, unveiled via the bank’s official Twitter (X) account, aims at curbing the rising tide of fraudulent activities associated with mobile money services.
Under this new regulation, which aligns with the National Payments Systems Act of 2020, and the subsequent 2021 regulations, users making substantial payments through digital platforms must now verify their identity using a government-issued ID, necessitating a national ID card or passport for Ugandan nationals, while foreign residents are required to present a refugee or alien ID.
The enforcement of this rule raises concerns among some stakeholders about the potential for reduced transaction speed and the impact on individuals lacking formal identification. Additionally, fears loom over a possible rise in ID card forgeries spurred by the new requirements.
Despite these challenges, Uganda is poised to bolster its digital security measures with a forthcoming mass enrolment drive for new biometric national ID cards in June. This initiative promises to strengthen the integrity of online transactions by ensuring more reliable verification of user identities.
