Money

The Uganda Microfinance Regulatory Authority (UMRA) has noted with concern the unlicensed money lenders taking advantage of desperate people and said it finalized plans to launch and enforce operations against all those operating outside the law.

Peter Emong Ojulang, the UMRA Executive Director said; “It has come to the attention of the Authority 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 lending business without a license.”

“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 mushrooming 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.”

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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 enforce operations against all those operating outside the law.”

Uganda Microfinance Regulatory Authority (UMRA) is mandated to regulate, license and supervise all the Tier IV Microfinance Institutions and Money Lenders in Uganda. The Authority was established by section 6 of the Tier IV Microfinance Institutions and Money Lenders Act, 2016.

The Act applies to Money Lenders, SACCOs, Non Deposit Taking Microfinance Institutions and self-Help Groups.