The Ugandan government is proposing a draft law that would require individuals or businesses offering foreign exchange services to have a minimum capital of at least Shs200 million. Failure to meet this requirement within six months could result in closure.
Currently, the minimum capital requirement for forex bureaus is Shs50 million. The government justifies the increase by highlighting the operational costs involved in running a forex bureau, such as hiring professional staff, maintaining premises, and investing in security measures. The proposed law also grants the central bank the authority to become shareholders of under-capitalized institutions and allows the Finance ministry and Bank of Uganda to revise capital amounts for forex bureaus without parliamentary approval.
Some legislators have raised concerns about granting unfettered powers to the central bank and the finance minister. The government’s aim is to strengthen the regulation and efficiency of the foreign exchange and money transfer business. The move comes in the context of recent attacks on mobile money outlets and financial institutions, although the government argues that separate legal provisions address physical security concerns.
Source: Daily Monitor
I don’t think the title of your article matches the content lol. Just kidding, mainly because I had some doubts after reading the article.