PROCEDURE FOR OBTAINING MONEY REMITTANCE LICENSE IN UGANDA
LAWS APPLICABLE INCLUDE,
ØTHE
FOREIGN EXCHANGE ACT, 2004.
ØFOREIGN
EXCHANGE (FOREX BUREAUS AND MONEY REMITTANCE) REGULATIONS, 2006,
ØAMONG
OTHERS.
§No
one is supposed to transact money remittance business in Uganda without a
license to do so from bank of Uganda.
permitted to transact money remittance
business in Uganda.§Only
companies limited by shares incorporated locally in Uganda are
§The
following are four types or classes of money remittance license one may obtain
In Uganda
a. Class A—International Money Transfer Agency License;
b. Class B—Forex Bureau and Money Remittance License;
c. Class C—Direct Entrants License; or
d. Class D—Sub – Agency License.
The requirements/considerations for each class or type of money remittance
license one may obtain in Uganda are as follows,
For Class A—International Money Transfer Agency License, that the applicant
has—
i. a clear license to operate in the base country;
ii. a good track record of conducting money remittance business;
iii. a recommendation from the regulatory authority in the base country;
iv. a minimum paid -up share capital of two thousand and five hundred currency
points;
v. the ability to comply with all applicable anti-money laundering and
combating of financing of terrorism standards and measures;
vi. acceptable Agency Agreements;
vii. a well spelt-out mode of money remittance that is formal, reliable and
transparent;
viii. an acceptable operational manual;
For Class B- Forex Bureau Remittances License that the applicant has—
i. A proven track record of licensed forex bureau operations for a period of
two years;
ii. A minimum paid-up share capital of two thousand and five hundred currency
points;
iii. Shareholders, directors and officers who are fit and proper persons for
purposes of money remittances;
iv. the ability to comply with all applicable anti-money laundering and
combating of financing of terrorism standards and measures;
v. separate counters and staff dedicated to the money remittance business;
vi. an acceptable operational manual;
vii. whether the public interest will be served by the granting of the license;
For Class C—Direct Entrants License—
i. the financial condition and history of the applicant;
ii. that the applicant has a minimum paid-up share capital of two thousand and
five hundred currency points;
iii. the nature of the business of the applicant;
iv. the competence and integrity of the applicant and its management;
v. the adequacy of the applicant’s business and financial plans and earning
prospects;
vi. whether the shareholders, directors and officers of the applicant are fit
and proper persons for purposes of transacting money remittance business;
vii. the geographical locations and branch distribution network of the proposed
business;
viii. the ability to comply with all applicable anti-money laundering and
combating of the financing of terrorism standards and measures;
ix. whether the public interest will be served by the granting of the license;
For Class D—Sub-Agent’s License—
i. The financial condition and history of the applicant;
ii. That the applicant has a minimum paid-up share capital of two thousand and
five hundred currency points;
iii. The nature of the business of the applicant and its management;
iv. The competence and integrity of the applicant and its management;
v. The adequacy of the applicant’s business and financial plans and earning
prospects;
vi. Whether the shareholders, directors and officers of the applicant are fit
and proper persons for purposes of transacting remittances business;
vii. The geographical locations and branch distribution network of the proposed
business (premises);
viii. The applicant’s ability to comply with all applicable anti-money
laundering and combating of the financing of terrorism standards and measures;
ix. Evidence of acceptable Agency Agreements with its principal;
x. Whether public the interest will be served by the granting of the license.
A person who satisfies the requirements above and wishes to carry on money
remittance business may apply to Bank of Uganda for a license to carry on that
business as follows
• Choose the type or class of money remittance license that you from the above
• Mobilize funds to run the business
• Incorporate company limited by shares with URSB Uganda. “See the post on this
blog on how to incorporate company limited by shares”
• Have at least ugx 50,000,000 minimum paid up share capital for the company.
• Prepare CV/RESUME for all the directors / share holders of the intending
applicant.
• Prepare the application for remittance license set out in Form A in schedule
5 to Regulations mentioned above depending on the type of license you are
interested in.,
• Prepare the Information sheet as set out in Form B in schedule 5 to
Regulations mentioned above , specifying the class of license being applied for
• Attach all the requirements indicated above according to the particular
remittance license you want on the application prepared.
• Submit the application for remittance license to Bank of Uganda.
• Bank of Uganda shall within three months after receipt of a complete
application for a money remittance license consider the application.
• After considering the application bank of Uganda shall prepare a detailed
report in respect of the application indicating the decision of the Bank of
Uganda to—
a. grant the license, if it is satisfied that the application fulfils the
requirements of the Foreign Exchange Act and the Regulations there under;
b. grant the license subject to the fulfillment of certain conditions that the
Bank of Uganda deem necessary;
c. Refuse to grant the license, stating the reasons for the refusal that shall
be stated in the notice of the decision or letter of refusal to the applicant.
• Bank of Uganda shall within those three months communicate the decision to
the applicant.
• If the application for money remittance was considered and granted the
applicant has to pay for the license fee.
• Upon payment of license fee he or she the license shall be processed for
collection.
• You pick the license if it is ready for collection and commence the
transactions as per the license.
•
Author is A regional transactions legal consultant (ADVOCATE) at NOA
REGIONAL ASSOCIATED ADVOCATES AND LEGAL CONSULTANTS
Email address: onlinetransactionconsultancy@gmail.com.
contacts +250787311255,+256788105242,+256782105042
What sup +250787311255
NOTE: whereas the author has made necessary efforts to ensure the accuracy of this post, it is not intended to provide specific legal advice to a particular individual as individual situations may differ.
For specific technical / legal transaction advice on this subject matter and
related subject, you may contact the author at online consultancy fee, or
contact any transaction legal consultant of your choice.
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