Uganda - Apply for Money Remittance License

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Procedure

Apply In-Person
Stage 1: Approval of Name

1. Contact Bank of Uganda at an early stage for preliminary meeting to discuss licensing requirements and related issues.
2. Propose and reserve at least three business names with the Registrar of Companies that have the words “money remittance” or “money transfer” as a brand name.
3. Submit the proposed names to Bank of Uganda in order of priority before incorporation of the company as a company limited by shares.
   

Stage 2: Application for Licence

Complete and Submit a certified Application Form A- to Bank of Uganda together with an Information Sheet as set out in Form B in Schedule 5 to the Regulations, specifying the class of licence being applied for and also furnish the Bank of Uganda with any other information that the Bank of Uganda may require accompanied by all supporting documents, including –

• A certified copy of the Certificate of Incorporation;
• Certified copy of the tax Personal Identification Number (PIN) certificate;
• Certified copy of the registered Memorandum and Articles of Association indicating paid up capital of at least Ugshs 50 million.
• A Clear licence to operate in the base country.
• A good track record of conducting money remittance business;
• A recommendation from the regulatory authority in the base country;
• A minimum paid -up share capital of two thousand and five hundred currency points;
• The ability to comply with all applicable anti-money laundering and combating of financing of terrorism standards and measures;
• Acceptable Agency Agreements;
• Verified official notification of the company’s registered place of business, including the prospective places of business (Head Office, branches, agency and outlets, if any);
• A well spelt-out mode of money remittance that is formal, reliable and transparent;
• An acceptable operational manual;
• Pay a non-refundable application fee of Ugshs 1,000,000 to the Bank of Uganda by bankers’ cheque or RTGS.
  • Provide evidence of minimum core capital of Ugshs.50 million.
  • Prepare and submit a comprehensive feasibility study and business plan.
  • Complete and submit the `Fit and Proper Forms’ for all significant shareholders (at least 10% shareholding) and proposed directors accompanied by supporting documentation (certified).
  • The applicant shall ensure that there are no factors, such as unavailability or inadequacy of information and lack of transparency, which may—
    • Hinder the conduct of investigations by the Bank of Uganda after the submission of its application; or
    • inhibit effective supervision of the licensee by the Bank of Uganda after the issuance of a money remittance licence.
      

Stage 3: Detailed report.

The Bank of Uganda shall, within three months after receipt of a complete application for a money remittance licence, consider the application and prepare a detailed report in respect of the application indicating the decision of the Bank of Uganda to—

1. Grant the licence, if it is satisfied that the application fulfils the requirements of the Act and these Regulations;
2. Grant the licence, subject to the fulfilment of certain conditions that the Bank of Uganda deem necessary;
3. Refuse to grant the licence, stating the reasons for the refusal that shall be stated in the notice of the decision or letter of refusal to the applicant.
4. The Bank of Uganda may at any time vary or revoke any of the existing conditions of a licence or impose new conditions.
   

Stage 4: Letter of intent.

• Upon assessment and fulfilment all the above requirements in stage three, the Central Bank will issue a Letter of Intent, which is an approval in principle and advise the applicant on the next steps and requirements to be fulfilled before issuance of a licence and approval to commence operations, including.
  • Payment of licence fee of Ugshs 1,000,000 to the Central Bank by bankers’ cheque or RTGs.
  • Obtain a security consisting of either a surety bond, an irrevocable letter of credit from a commercial bank or a microfinance institution or an insurance bond of not less than Ugshs.10 million or an amount equal to one percent of the applicant projected total volume of business for the first year of operation.
  • Preparations of premises to meet prescribed standards and seek the Central Bank approval/ licence before commencement of operations.
  • Complete and submit the Fit and Proper Forms for key senior officers accompanied by all the supporting documentation,
  • Preparing and putting in place management information system and other institutional structures required for conducting the money remittance business.
    

Stage 5: Issuance of Licence

• Central Bank, if satisfied that the Applicant has met all the requirements, may issue a licence authorizing the applicant to commence money remittance business.

NOTE: The Central Bank shall undertake a due diligence on the management and an assessment on the MIS and internal controls and procedures.

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Required Documents

• A certified copy of the Certificate of Incorporation;
• Certified copy of the tax Personal Identification Number (PIN) certificate;
• Certified copy of the registered Memorandum and Articles of Association indicating paid up capital of at least Ugshs 50 million.
• Verified official notification of the company’s registered place of business, including the prospective places of business (Head Office, branches, agency and outlets, if any);
• Pay a non-refundable application fee of Ugshs 1,000,000 to the Central Bank by bankers’ cheque or RTGS.

Office Locations & Contacts

Bank of Uganda - HEAD OFFICE,
Physical Address:Plot 37/45
Kampala Road
Kampala, Uganda
Postal Address: P.O Box 7120,
Kampala, Uganda
Telex: 61059
Telephone numbers: +256-414-258-441/6
Fax: + 256-41-4230878 , +256-41-4233818
Email: [email protected]
Website Link

Eligibility

• Any person is eligible to make an application to run a Money Remittance Firm in Uganda.

Fees

• The name a search and reservation fee of Ugsh.100,000
• Application fee is Ugsh.1,000,000 for a new licence (fees are in bankers cheque payable to the Bank of Uganda);
• The Annual licence fee of Ugsh.2,000,000
  

Note:The Bank of Uganda may prescribe different licence fees in respect of different classes or categories of licensees.

• For More information on the charges Visit this Link:
  

Bank Fees Charges

Validity

• The validity period is one year.
• A licence issued under this section shall, unless earlier revoked, expire on the 31st December next following the date of issue

Documents to Use

Application Form

Sample Documents

Please attach sample completed documents that would help other people.

Processing Time

Processing time 120 days.

Related Videos

Videos explaining the procedure or to fill the applications. 
Attach videos using the following tag <&video type='website'>video ID|width|height<&/video&> from external websites. 	
Please remove the '&' inside the tags during implementation.
Website = allocine, blip, dailymotion, facebook, gametrailers, googlevideo, html5, metacafe, myspace, revver, 
sevenload, viddler, vimeo, youku, youtube
width = 560, height = 340, Video ID = Can be obtained from the URL of webpage where the video is displayed.
e.g In the following url 'http://www.youtube.com/watch?v=Y0US7oR_t3M' Video ID is 'Y0US7oR_t3M'.

Instructions

1. For issuance of a license, please submit the duly completed form, to Bank of Uganda.
2. For purposes of application for a new license, an applicant is required first to seek approval name from Bank of Uganda and thereafter will be advised on the documents to be submitted together with the duly completed form.
3. Upon satisfying all the requirements and paying the applicable licensing fees the applicant will be issued with a license.
4. All information provided shall be treated as confidential.
5. No refund of any licence fees paid to the Bank of Uganda shall be made in the event that—
   • a licence is cancelled or revoked; or
   • the licensee ceases to carry on Business before the expiry of the licence.
6. An additional fee of fifty currency points shall be payable by a licensee for each of its branches.
7. A licence issued under these Regulations shall not be transferable or assignable.

Required Information

1. Name of applicant
2. Head/ Main office
3. Physical and postal address of head office/ proposed new outlet
4. Date of incorporation
5. Form of incorporation
6. Description of the applicants business or functions
7. Certificate of incorporation Number
8. Details of subsidiaries and affiliates (Name of Outlet, County, City/Town, Street, Building, Date opened)
9. Particulars of shareholders (Name, Nationality, Date of acquisition, Amount of shareholding, % of shareholding)
10. Particulars of directors (Name, Nationality, Date of appointment, Level of education)
11. Particulars of the officers in the order of seniority (Name, Designation, Nationality, Date of appointment)
12. Ownership profiles
13. Shareholding in any other financial institution
14. Name of applicants external auditors
15. Declaration.

Need for the Document

• This license allows the holders to operate a Money Remittance Firm in Uganda.
• A person who operates Money Remittance Firm without a valid license commits an offence and shall, on conviction be liable to a fine not exceeding five hundred thousand shillings, or to imprisonment for term not exceeding three years, or both.
• To increase transparency of remittance and payment flows in and outside Uganda by ensuring that anti-money laundering and the combating of the financing of terrorism measures are observed in forex bureau and money remittance businesses.

Information which might help

• The Money Remittance Firm shall be body corporate with perpetual succession and a common seal, with power to acquire, own, possess and dispose of property, to contract, and to sue and to be sued in its own name.
• This application allows a person to operate a Money Remittance Firm in Uganda.
• In Uganda no person shall, operate a Money Remittance Firm in Uganda unless authorized by the Bank of Uganda.

Other uses of the Document/Certificate

Please explain what are other uses of obtaining this document/certificate.
e.g. Birth Certificate can be used as proof of identity.

External Links

• External Link 1
• External 2
• External Link 3