Bank of Uganda Warns Forex Bureaus Over Unauthorized Ownership Shifts

The Bank of Uganda (BoU) has issued a stern warning to licensed forex bureaus and money remittance businesses regarding the unauthorized alteration of their ownership and management structures. According to the central bank, making such changes without official clearance exposes the country’s broader financial system to severe vulnerabilities, including money-laundering risks.

In a public notice released by the regulator, the central bank highlighted that certain institutions have been altering their directors and shareholders without seeking the mandatory green light. This practice directly violates Regulation 33(2) of the Foreign Exchange (Forex Bureaus and Money Remittance) Regulations, 2006.

Regulatory authorities stress that maintaining strict oversight over who controls financial institutions is vital for safeguarding Uganda’s economic stability. Unvetted ownership changes can easily create loopholes that illicit actors exploit to move tainted money through the formal financial network.

Operators within the foreign exchange and remittance sector are now being urged to strictly adhere to established legal procedures and secure proper approvals before implementing any structural or administrative changes. The central bank has signaled that severe penalties await any entity found flouting these compliance directives.

For more details on this regulatory update, read the original report on Daily Monitor.