The Government of Uganda through Uganda Microfinance Regulatory Authority (UMRA) has finalized plans to launch enforcement operations against unlicensed money lenders.
In a statement dated 30th August, 2021, Peter Emong Ojulang, UMRA Executive Director says it has come to the authority’s attention that some unlicensed individuals are conducting money lending business in total disregard of the provisions of the law.
“Section 84 of the tier 4 Microfinance Institutions and Money Lenders Act, 2016 prohibits anyone from conducting money lending business without license,” Mr Ojulang said.
“The Authority would like to inform the general public that Tier 4 Microfinance Institutions and Money Lenders Act, 2016 is now effective. The Authority has noted with concern the mashrooming unlicensed money lenders around the country conducting business in defiance of the sections under the Tier 4 Microfinance Institutions and Money Lenders Act, 2016 and accompanying regulations.”
Mr Ojulang added that the illegal money lending companies are taking advantage of desperate people affected by Covid-19 pandemic to cheat them.
” We are informing the general public that the authority has finalized plans to launch enforcement operations against all those operating outside the law. We encourage borrowers to transact business with only licensed money lenders to avoid being cheated.”
About UMRA:
UMRA is mandated to regulate, license and supervise all the Tier 4 Microfinance Institutions and Money Lenders in Uganda. The authority was established by Section 6 of the Tier 4 Microfinance Institutions and Money Lenders Act, 2016.
The act applies to money lenders, SACCOs, Non Deposit Taking Microfinance Institutions and Self Help Groups.
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