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Central Bank warns forex bureaux

By Vision Reporter

Added 2nd December 2007 03:00 AM

THE central bank has warned forex bureaux and money remitters to be vigilant and avoid becoming conduits for money laundering.

THE central bank has warned forex bureaux and money remitters to be vigilant and avoid becoming conduits for money laundering.

By Sylvia Juuko

THE central bank has warned forex bureaux and money remitters to be vigilant and avoid becoming conduits for money laundering.

Justine Bagyenda, the executive director supervision, said the anti-money laundering guidelines issued in 2003 to all forex bureaux would assist the institutions in combating such activities.
“Licensed forex bureaux and money remitters should be our partners in the fight against money laundering and combating of the finance against terrorism,” she said.

Bagyenda was opening an awareness workshop on the Foreign Exchange Act 2004 and the Foreign Exchange (forex bureau and money remittance) Regulations, Hotel last week.
She said forex bureaux and money remitters that were not submitting returns to the central bank in line with regulations, risked suspension or revocation of licenses.

“I must emphasise that when BOU (Bank of Uganda) underscores adequate reporting requirements, there is no intention of re-introducing foreign exchange controls or reversing the current exchange rate management policy. We have noted and warn some few errant forex bureaux and money remitters especially those located upcountry who are not submitting returns in time,” she said.

Money laundering, the manipulation of illegally acquired wealth with the intention of obscuring its true nature or source--is reportedly the world’s third largest business, coming on the heels of foreign exchange transactions and international oil trade.

It is estimated that global money laundering amounts to $2.85 trillion per year mostly concentrated in Europe and North America.

Benedict Sekabira, the acting deputy director, non-bank financial institutions department, said they had streamlined operations of forex bureaux and money remitters.

Money remitters, he said should deposit a security of sh50m with the central bank.
He, however, noted that some operators had not complied with the requirement of asking customers the source and purpose of foreign exchange transacted.

Central Bank warns forex bureaux

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