The Uganda Microfinance Regulatory Authority (UMRA) has started operations against unlicenced money lenders and individuals conducting business with the public.
According to a statement from the Executive Director UMRA Peter Emong Ojulang, they have learnt that some unlicenced 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 a licence.
“The Authority has noted with concern the mushrooming unlicenced 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,” the statement reads in part.
“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 finalised plans to launch enforcement operations against all those operating outside the law,” the statement continues.
The Authority called upon members of the public to seek business only with Money Lenders that can prove they are licenced.