Ugandan banks are urging the government to exclude them from proposed "foreign agents" registration legislation, warning the measure would damage their ability to raise capital from international markets. The banking sector is seeking an exemption from requirements that all businesses and individuals receiving funds from outside the country register with authorities.

The legislation would mandate registration for any entity that receives foreign funding, a broad definition that would capture most of Uganda's major banks. Bank executives argue the requirement would create significant regulatory burdens and complicate correspondent banking relationships that are essential for international transactions.

The pushback highlights growing tension between regulatory oversight and Uganda's need for foreign investment. If banks cannot easily access international capital, it could constrain lending and slow economic growth across the sector.