In a rapidly evolving global financial landscape, regulatory vigilance is no longer a choice but a necessity. In Europe, the European Banking Authority (EBA) has taken a critical step forward with the release of its Final Report on the Draft Regulatory Technical Standards (RTS) concerning the appointment of Central Contact Points (CCPs) for Electronic Money Issuers (EMIs) and Payment Service Providers (PSPs).
This update, linked to Regulation (EU) 2023/1113, now extends obligations under the Fourth EU Money Laundering Directive (4MLD) to include Crypto-Asset Service Providers (CASPs). From December 30, 2024, entities operating without a traditional branch structure across EU member states must appoint a CCP to ensure effective Anti-Money Laundering (AML) and Counter-Terrorism Financing (CFT) compliance.
Why Should Uganda Care?
While these developments are tailored for the European market, their relevance to Uganda cannot be overstated. As cross-border financial transactions become routine and the digital economy matures, Uganda stands at a strategic inflection point where adopting global best practices is crucial.
Four Key Lessons for Uganda:
Cross-Border Compliance is Non-Negotiable:
With many Ugandan fintechs and banks engaging internationally, aligning with evolving EU standards safeguards relationships with European partners and fosters trust.
Time to Elevate Uganda’s AML/CFT Frameworks:
By considering the establishment of CCPs for foreign EMIs, PSPs, and emerging CASPs operating in Uganda, regulators like the Bank of Uganda can streamline supervision and communication, improving responsiveness and oversight.
Protecting the Integrity of Uganda’s Financial System:
Central Contact Points act as control towers, helping regulators monitor activities, enforce regulations, and ensure that financial services companies operating without a physical presence do not fall through the cracks.
Positioning Uganda as a Forward-Thinking Financial Hub:
Proactively strengthening Uganda’s regulatory frameworks will not only secure its financial system but also position it as a compliant and attractive market for responsible international fintech investment.
Conclusion:
Europe’s move towards stricter control of EMIs, PSPs, and CASPs underlines the global urgency to fight financial crime in the digital era. Uganda has a unique opportunity to learn from these standards, adapt them contextually, and reinforce its own defenses. As the financial world flattens, countries that move swiftly towards robust compliance will lead in building resilient, inclusive, and globally integrated economies.
Publicist East Africa will continue to spotlight emerging regulatory trends that shape the future of finance across the continent.