The Financial Institutions (Amendment) Act, 2016 is an amendment to the Financial Institutions Act, 2004. This Law's main purpose is to enable and supervise Islamic banking, bancassurance, agent banking, provision of special access to the Credit Reference Bureau by other accredited credit providers and service providers and to reform the Deposit Protection Fund.
The Law is amended to enable Islamic financial institutions to carry out safe and sound banking practices in accordance with the Shari'ah. A financial institutions wishing to engage in bancassurance must be in accordance with the Insurance Act and the Insurance Regulatory Authority of Uganda and have prior authorisation by the Central Bank. In this amendment the Deposit Protection Fund is reformed to be a separate legal entity from the Central Bank and is now governed by a board of directors.