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City forex bureau sues Bank of Uganda

KAMPALA. A Kampala-based forex bureau has sued Bank of Uganda (BoU) for allegedly revoking its license over failure to renew it on time.

Tray Forex bureau in its documents it filed before the High Court, Civil Division earlier this week, contends that they applied to BoU for a license to conduct foreign exchange business on the September 16, 2016 which was duly granted under license number FXB 285/17.

Ms Henriettah Natukunda, the manager of the entity, claims that the forex bureau did not deliberately neglect or refuse to renew its license within the stipulated time but rather it was due to unavoidable circumstances related to internet connections.

In a letter dated January 15, 2018, to the director non-bank financial institutions department of BoU, and signed by the forex bureau’s manager, they apologized for not submitting its monthly returns for the months of November and December.

“From the commencement of the business, the applicant has at all times complied with its obligations as a forex bureau and money remittance service provider except for a few occasions when it failed to file its annual returns due to internet interruptions but the same was later rectified,” Ms Natukunda stated

“The delay was because we have been having technical issues with our internet service provider (Uganda Telecom) which made it impossible for us to submit our returns in time. However, it has been solved by hiring new service providers (Vodafone),” reads in part the letter.

Ms Natukunda further contends that the decision by BoU to revoke the forex bureau’s license as new licensee and first time offender, was harsh and unlawful.

This she says, is contrary to regulation 40(2) a, b, c of foreign exchange (Forex Bureaus and Money Remittance S.1 10/2006) having not cautioned them.

Through its lawyers of Muwema & Co Advocates, the forex bureau wants the court to declare that the decision by BoU to cancel its license in its exercise as the regulator, was unjustified.

They also want their license renewed.

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