The Central Bank regulates forex bureaus and other financial institutions.

KAMPALA. Tray Forex Bureau in Kampala has sued Bank of Uganda (BoU) for revoking its License over failure to renew it on time.

An affidavit sworn and filed at the High Court Civil Division, indicates that the forex bureau applied to BoU for a license to conduct foreign exchange business on September 16, 2016 which was duly granted under license number  FXB 285/17.

“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,” Tray Forex bureau manager Henriettah Natukunda wrote in her affidavit.

She argued that the decision by BoU to revoke the forex bureau’s license as new licensee and first time offender was harsh and unlawful contrary to regulation 40(40)(a), (c) foreign exchange(Forex Bureaus and Money Remittance), since the Central Bank issued no caution.

The forex bureau on Wednesday asked courtto declare that the decision by BoU to cancel its license was was unjustified. They also asked that their license be renewed.

In a January 15, 2018 letter to the Director Non-bank Financial Institutions Department BoU, and signed by the forex bureau’s manager, the bureau apologized for not submitting its monthly returns for the months of November and December.

“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.

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Forex bureau drags Bank of Uganda to court for revoking license