UGANDA: THE NATIONAL PAYMENTS SYSTEMS ACT, 2020, BECOMES LAW
The Ugandan National Payments Systems Act, 2020 (Act), effectively became law when it was assented to by the President late last month. Its commencement date will be the date of its publication in the Uganda Gazette.
Among others, the Act will provide for the following:
- The Act regulates operators of payment systems, payments service providers, issuers of payment instruments and issuers of electronic money. All these will now require licences issued by the Central Bank of Uganda (CBU) with the exception of payment systems operated by the CBU.
- The Act introduces a regulatory Sandbox under which a person may obtain limited access to a payment system or eco-system to test innovative financial products or services without obtaining a licence.
- The Act has a transitional provision that requires holders of existing licences issued by the CBU to operate a system to apply for a licence in accordance with the Act within 12 months of its commencement. This means that for those who were not licensed prior to the Act coming into effect, the licensing requirement will be immediate upon commencement.