World money transfer service provider, WorldRemit has announced that it is winding up business in Uganda and consequently, people in Uganda will no longer use it to send money abroad.
“We are letting you know that regrettably, WorldRemit has stopped providing send services and will not be accepting any new transactions sent from Uganda starting June, 6,” a notice from WorldRemit last week said.
The company explained that from that date, people in Uganda will no longer be able to use WorldRemit to send money to other countries or make airtime top ups using the company.
The company however noted that Ugandans and other people abroad can ably send money to Uganda using WorldRemit as this is not affected by the decision to close business in Uganda.
“Transactions sent to Uganda from senders overseas will continue and are not impacted by this decision,” the company said.
The company also noted that before June, 6, they will continue offering all services normally.
A number of Ugandans, especially those working and living abroad send money to their loved ones back home using WorldRemit but this will not be affected by the development.
Only those who wish to send money from Uganda are the only ones to be affected by the decision.
Money laundering
In January, the Financial Intelligence Authority warned that Uganda risks being blacklisted by the Financial Action Taskforce (FATF) if the government does not tackle money laundering by this month (May 2022).
“Uganda was placed in the grey list in 2020. It means the country has been identified but it made commitments with the FATF to address the specific issues within a given time frame,” Financial Intelligence Authority, Executive Director, Sydney Asubo told parliament in January.
Asubo said the consequences are dire because the impact of being on the grey list means that the world is aware that the country is having challenges in addressing money laundering.
“Some people have already started feeling the impact especially international transactions which would take a day or two, are now taking a week or two. That process of scrutiny is beyond the normal scrutiny,” he said.
It is however not clear whether WorldRemit's decision to leave Uganda is whether of the said sanctions.
