By Ivan Mwine
Several Ugandans in the diaspora are caught between a rock and a hard place after the Bank of Uganda (BoU) announced the closure of WorldRemit (U), a company they have been using to send money to relatives, colleagues and business associates in Uganda.
The closure of WorldRemit (U) Limited is confirmed in a statement titled WORLDREMIT TRANSFER (U) LIMITED CEASES OFFERING MONEY REMITTANCE BUSINESS issued July 4, 2022 by the management of BoU, which states is part thus;
Pursuant to regulation 19(3) of the Foreign Exchange (Forex Bureaus and Money Remittance ) Regulations, 2006, the Bank of Uganda hereby informs the public that WorldRemit Money Transfer (U) Limited voluntarily ceased to carry on money remittance business.
The public is notified that the closure of WorldRemit Money Transfer (U) Limited as a company will not affect WorldRemit money remittance product offered by several supervised financial institutions in Uganda.
Customers with outstanding claims for monies given to WorldRemit Money Transfer (U) Limited for remittance purposes should submit the claims, with evidence, to the office of the Director Non-Bank Financial Institutions Department at Bank of Uganda by July 18, 2022.
Bank of Uganda assures the public that it will continue to safeguard the stability and integrity of the financial sector…”
However, although BoU contends that WorldRemit Money Transfer (U) limited voluntarily shut down business, sources privy to the matter reveal that it involved a lot of political pressure from Above.
It is said that the pressure started mounting after Financial Intelligence Authority (FIA) operatives discovered that some opposition politicians have been receiving money through WorldRemit from their supporters in the Diaspora to finance their activities in Uganda.
Anyways, we shall keep you updated about this developing story so watch the space.