We’re being blocked from bank transactions over our political status — Ex-ministers
The matter has prompted Deputy Speaker of Parliament Thomas Tayebwa to ask the Attorney General, Sam Mayanja, to clarify when a person ceases to be considered politically exposed and what obligations banks should continue to impose on former public officials.
While chairing plenary today (October 6), Tayebwa told Parliament that he had received several complaints from former MPs and ministers, who said they are routinely subjected to additional scrutiny whenever they seek to conduct certain transactions through their bank accounts.
KAMPALA - Former ministers and Members of Parliament (MPs), who left public office more than a decade ago, are still facing difficulties accessing some banking services after being classified as politically exposed persons.
The matter has prompted Deputy Speaker of Parliament Thomas Tayebwa to ask the Attorney General, Sam Mayanja, to clarify when a person ceases to be considered politically exposed and what obligations banks should continue to impose on former public officials.
While chairing plenary today (October 6), Tayebwa told Parliament that he had received several complaints from former MPs and ministers, who said they are routinely subjected to additional scrutiny whenever they seek to conduct certain transactions through their bank accounts.
“Former ministers have approached me seeking clarity and wanted the central bank to communicate guidance to all banks so they could transact freely,” Tayebwa said.
“We are all going to that route when we leave this place, so we need this sorted. Attorney General, can you clarify on this matter?” Tayebwa requested.
He said the former politicians want the Attorney General's clarification to be formally communicated to Bank of Uganda, which should in turn communicate the position to commercial banks to ensure that there is a uniform interpretation.
Why banks ask for political exposure
According to the Financial Action Task Force, persons with access to public funds or decision-making power can potentially abuse their positions to obtain or move illicit funds. Banks, therefore, have to establish who their customers are, understand the purpose of their banking relationships, and monitor transactions for unusual activity.
Under Uganda's Anti-Money Laundering Act, a politically exposed person includes an individual who “is or has been” entrusted with a prominent public function in Uganda or another country. The definition includes senior politicians, senior government officials, judicial or military officials, senior executives of state-owned corporations and political party officials.
Tayebwa said the former MPs and ministers had asked that the Attorney General's clarification be communicated beyond Parliament so that it can be implemented consistently across the banking sector.
He said the Attorney General should communicate the position to the central bank, which would then communicate it to all banks.
Sheema Municipality MP Dickson Kateshumbwa noted that in 2003, the Financial Action Task Force had come up with a definition of politically exposed persons, the latest being in 2012. He said the Attorney General should clarify so that the law does not disadvantage those who have left politics.