Microfinance Regulator set to act on illegal moneylenders.
Written by Derrick Asaba on August 30, 2021
The Uganda Microfinance Regulatory Authority (UMRA) has cautioned all borrowers to only transact business with only licensed moneylenders to avoid being cheated.
This follows a rise in the number of unlicensed money lenders countrywide conducting business in defiance of the Tier-4 Microfinance Institutions and Money Lenders Act, 2016 and accompanying regulations.
“The illegal money lending companies are taking advantage of desperate people affected by COVID-19 pandemic to cheat them. We’re informing the general public that the Authority has finalized plans to launch enforcement operations against all those operating outside the law,” said Peter Emong Ojulang, the Director of Finance and Administration at the Authority.
Ojulang further noted today that the Tier-4 Microfinance Institutions and Money Lenders Act, 2016 is now effective. Section 84 of this Act prohibits anyone from conducting money lending business without a license.
UMRA is mandated to regulate, license and supervise all the Tier-4 Microfinance Institutions and Money Lenders in the country. 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.