Finance ministry seeks amendment of Foreign Exchange Act
The Ministry of Finance is seeking to make amendments to the Foreign Exchange Act which would see the capital requirement run a money remittance business increased to 10,000 currency points which is equivalent to Shs200 million.
This was revealed by the state minister of Finance Henry Musasizi while introducing the Bill before the finance committee of parliament.
Musasizi said that the government is seeking to increase the minimum paid-up share capital to carry out the money remittance business to shs200 million from Shs50 million.
The ministry also wants to increase the minimum paid-up capital to carry out a foreign exchange to Shs50 million shillings.
The ministry also wants parliament to give the Governor of Bank of Uganda, the entity supervising forex bureaus, a statutory instrument made in consultation with the minister, to revise the minimum capital requirements for foreign exchange business and money remittance without first seeking parliamentary approval as is the practice.
The ministry also seeks to insert a new clause in Section 5 of the Principal Act to provide for modalities upon which Bank of Uganda can handle any Foreign Exchange Bureau that becomes undercapitalized.
