BoU closes Arua forex bureau

Authorities at Bank of Uganda have revoked the foreign exchange license for Arua Forex Bureau Limited and warned the public to deal with the company at their own risk.

Although BoU effected the revocation on July 24, the Bank of Uganda Governor, Emmanuel Tumusiime Mutebile issued a statement today [Tuesday), confirming the cancellation of the license to the company.

“Bank of Uganda (BoU) has effective July 24, 2019 revoked the foreign exchange license No. FXB 107/19 issued to Arua Forex Bureau Limited, in accordance with Section 6(1) and 6(3) (d) of the Foreign Exchange Act 2004,” the BoU statement reads in part.

“Arua Forex Bureau Limited hitherto located at Plot 7 Adumi Road Arua Town is henceforth not permitted to transact any business prescribed under the Foreign Exchange |Act 2004.”

The statement adds: “The public is warmed that whoever deals with this Forex Bureau, its proprietors, directors or managers in relation to foreign exchange or money remittance business does so at his or her own risk.”

After revoking the license, Mr Mutebile issued a public statement citing Section 5 of the Foreign Exchange Act, 2004, explaining that no person is allowed to engage in business of dealing in foreign exchange without a licence.

“All persons interested in buying and selling foreign currency or money remittance should do so at an authorized forex bureau or money remittance outlet …”Mr Mutebile advised. He asked clients to check on the BoU website for the list of approved forex bureaus.

Without disclosing the reason for cancelation of the licence, Mr Mutebile assured the public that the bank will continue to safeguard the stability and integrity of the financial sector.

However, in May this year, Uganda Radio Network (URN) reported that police had launched a manhunt for one David Kimani, the proprietor of the forex bureau on allegations of defrauding his clients more than Shs 2 billion.
Kimani reportedly fled back to Kenya after collecting the money from his clients to buy foreign currency.
He reportedly drove from Arua to the eastern Uganda border town of Malaba where he abandoned his Land Cruiser Prado vehicle.

More than 30 businessmen including seven Indians stormed the forex bureau when news of Kimani’s disappearance spread in Arua town. Some of the victims had left huge sums of money with Kimani to buy for them foreign currencies including US Dollars, Euros and Pound Sterling but were shocked by the news of his disappearance.