Section 15: Application for and grant of licence

(1) An applicant for a money remittance licence shall be locally incorporated in Uganda as a company limited by shares. (2) A person who desires to obtain a money remittance licence shall submit an application to the Bank of Uganda as set out in Form A in Schedule 5 to these Regulations, together with an Information Sheet as set out in Form B in Schedule 5 to these Regulations, specifying the class of licence being applied for and shall furnish the Bank of Uganda with any other information that the Bank of Uganda may require. (3) A licence issued under the Act and these Regulations may be- (a) Class A-International Money Transfer Agency Licence; (b) Class B-Forex Bureau and Money Remittance Licence; (c) Class C-Direct Entrants Licence; or (d) Class D-Sub - Agency Licence. (4) In considering an application under subsection (2), the Bank of Uganda may require to be satisfied as to the following licensing criteria- (a) For a Class A-International Money Transfer Agency Licence, that the applicant has- (i) a clear licence to operate in the base country; (ii) a good track record of conducting money remittance business; (iii) a recommendation from the regulatory authority in the base country; (iv) a minimum paid -up share capital of two thousand and five hundred currency points; (v) the ability to comply with all applicable anti-money laundering and combating of financing of terrorism standards and measures; (vi) acceptable Agency Agreements; (vii) a well spelt-out mode of money remittance that is formal, reliable and transparent; (viii) an acceptable operational manual; (b) for a Class B- Forex Bureau Remittances Licence that the applicant has- (i) a proven track record of licensed forex bureau operations for a period of two years; (ii) a minimum paid-up share capital of two thousand and five hundred currency points; (iii) shareholders, directors and officers who are fit and proper persons for purposes of money remittances; (iv) the ability to comply with all applicable anti-money laundering and combating of financing of terrorism standards and measures; (v) separate counters and staff dedicated to the money remittance business; (vi) an acceptable operational manual; (vii) whether the public interest will be served by the granting of the licence; (c) for a Class C-Direct Entrants Licence- (i) the financial condition and history of the applicant; (ii) that the applicant has a minimum paid-up share capital of two thousand and five hundred currency points; (iii) the nature of the business of the applicant; (iv) the competence and integrity of the applicant and its management; (v) the adequacy of the applicant's business and financial plans and earning prospects; (vi) whether the shareholders, directors and officers of the applicant are fit and proper persons for purposes of transacting money remittance business; (vii) the geographical locations and branch distribution network of the proposed business; (viii) the ability to comply with all applicable anti-money laundering and combating of the financing of terrorism standards and measures; (ix) whether the public interest will be served by the granting of the licence; (d) for a Class D-Sub-Agent's Licence- (i) the financial condition and history of the applicant; (ii) that the applicant has a minimum paid-up share capital of two thousand and five hundred currency points; (iii) the nature of the business of the applicant and its management; (iv) the competence and integrity of the applicant and its management; (v) the adequacy of the applicant's business and financial plans and earning prospects; (vi) whether the shareholders, directors and officers of the applicant are fit and proper persons for purposes of transacting remittances business; (vii) the geographical locations and branch distribution network of the proposed business (premises); (viii) the applicant's ability to comply with all applicable anti-money laundering and combating of the financing of terrorism standards and measures; (ix) evidence of acceptable Agency Agreements with its principal; (x) whether public the interest will be served by the granting of the licence. (5) The applicant shall ensure that there are no factors, such as unavailability or inadequacy of information and lack of transparency, which may- (a) hinder the conduct of investigations by the Bank of Uganda after the submission of its application; or (b) inhibit effective supervision of the licensee by the Bank of Uganda after the issuance of a money remittance licence. (6) The Bank of Uganda shall, within three months after receipt of a complete application for a money remittance licence, consider the application and prepare a detailed report in respect of the application indicating the decision of the Bank of Uganda to- (a) grant the licence, if it is satisfied that the application fulfils the requirements of the Act and these Regulations; (b) grant the licence, subject to the fulfilment of certain conditions that the Bank of Uganda deem necessary; (c) refuse to grant the licence, stating the reasons for the refusal that shall be stated in the notice of the decision or letter of refusal to the applicant. (7) The Bank of Uganda may at any time vary or revoke any of the existing conditions of a licence or impose new conditions.