Mobile money agents barred from foreign exchange trade

A lady seeks the services of a mobile money agent. PHOTO BY Michael Kakumirizi.

What you need to know:

Illegal. Police said many illegal money changers, including mobile money agents, have given unsuspecting clients counterfeits.

Kampala. Police have launched an operation to crack down on mobile money agents and money changers dealing in foreign exchange.
The operation started in Kampala Metropolitan Police area following a complaint from Uganda Forex Bureau and the Money Remittance Association that mobile money dealers carried out forex trading illegally.
Kampala Metropolitan Police spokesman Patrick Onyango said two people suspected to be dealing in foreign exchange without licences, have been detained in Kampala and a dozen more are being questioned in relation to a similar offence.
“No one is supposed to deal in forex exchange without a licence,” Mr Onyango said.
The emergence of illegal foreign exchange bureaus has affected businesses that have been legally licensed to operate forex bureaus. Unlike many licensed forex bureaus, illegal money changers are mobile and operate 24 hours a day.
However, Mr Onyango said many illegal money changers have given unsuspecting clients counterfeits.
Mr Onyango said police’s next targets are money changers at border points like Elegu, Busia, Tororo and Katuna.
“Many of these illegal foreign exchange traders at the border points are allowed by district authorities, which is also illegal. It is only Bank of Uganda that is authorised to grant licences to such operators. They should immediately stop it,” he warned.

Law on forex exchange
According to the Foreign Exchange Act, 2014, Section 17 “any person who engages in foreign exchange dealings without a licence issued under Section 5; commits an offence and is liable, on conviction, to a fine not exceeding two hundred currency points or imprisonment not exceeding two years or both such fine and imprisonment”.