Barclays breaks ties with forex bureaux
Dec 17, 2006
BARCLAYS Bank is cutting ties with forex bureaux over suspected money laundering. The bank has issued a notice of intent to close down accounts of all the 92 forex bureaux it is holding by December 29.
By Peter Kaujju
and Macrines Nyapendi
BARCLAYS Bank is cutting ties with forex bureaux over suspected money laundering. The bank has issued a notice of intent to close down accounts of all the 92 forex bureaux it is holding by December 29.
Notices have been sent to respective bureaux. The bank is, however, tight-lipped on the details of the suspected money laundering and the bureaux involved.
But commercial bank sources said the move was prompted by lack of a clear inflow and outflow of unspecified sums of money into the country. Some of this money is suspected to be ‘dirty money’ which is against the international practice. “We hereby give you notice of our intention to terminate our relationship with you and please note that as at close of business on December 29, your accounts with Barclays Bank of Uganda Limited shall be closed,†read a notice.
However, Nick Mbuvi, the Barclays Bank managing director, explained that the bank deals with customers on a case-to-case basis but addimtted that they would close all forex bureaux accounts.
Some bureaux contacted said they were disappointed with the bank’s move.
“I think Barclays is looking at us as competitors. They also think that other banks will follow this move to kill competition,†a forex bureaux source said.
The central bank sources added that Barclays claims that the forex bureaux were not giving adequate information about their clients.
“The bank might be disengaging from the bureaux after getting proof that their clients engage in money laundering,†the source stated.
and Macrines Nyapendi
BARCLAYS Bank is cutting ties with forex bureaux over suspected money laundering. The bank has issued a notice of intent to close down accounts of all the 92 forex bureaux it is holding by December 29.
Notices have been sent to respective bureaux. The bank is, however, tight-lipped on the details of the suspected money laundering and the bureaux involved.
But commercial bank sources said the move was prompted by lack of a clear inflow and outflow of unspecified sums of money into the country. Some of this money is suspected to be ‘dirty money’ which is against the international practice. “We hereby give you notice of our intention to terminate our relationship with you and please note that as at close of business on December 29, your accounts with Barclays Bank of Uganda Limited shall be closed,†read a notice.
However, Nick Mbuvi, the Barclays Bank managing director, explained that the bank deals with customers on a case-to-case basis but addimtted that they would close all forex bureaux accounts.
Some bureaux contacted said they were disappointed with the bank’s move.
“I think Barclays is looking at us as competitors. They also think that other banks will follow this move to kill competition,†a forex bureaux source said.
The central bank sources added that Barclays claims that the forex bureaux were not giving adequate information about their clients.
“The bank might be disengaging from the bureaux after getting proof that their clients engage in money laundering,†the source stated.