Apply for Authorization Letter to Engage in Mobile Phone Money Services In Uganda By Online
- A Mobile phone company that wishes to be authorised as a payment service provider must submit a written request for authorization to Bank of Uganda (BoU) to obtain an authorization.
- Effectively effectively, it is true that the BoU supervises the MNO indirectly through its partner bank, which has the power to revoke the bank’s license in instances of unconformity by the mobile money service provider.
- The BoU could, within 30 days after receiving an application for No Objection notice from the Bank could request additional information from the applicant , if the submitted information is not sufficient or in the event that the BoU thinks it is essential.
Stage 1. The Approval for NameA. Company Name Approval
- Get in touch with to the Central Bank of Uganda at the earliest stage to arrange an initial meeting to discuss the requirements for authorization and other questions.
- Make submissions to Bank of Uganda at least three (3) names that you would like to be included according to order.
- The applicant reserves the appropriate name at the Registrar of Companies.
- Any name that has been approved by the Bank cannot ever be utilized for any reason without the Bank has given the applicant an authorization.
- The name that is approved lasts for 12 months from the time that the approval is issued to Central Bank. Central Bank within which the applicant has received an authorization to operate a the business of providing payment services.
B. Approval of the Product Name
- Send to Bank of Uganda an idea for the name of the product in order of being subject to intellectual rights or intellectual properties that might exist but are not known for the Bank.
- The name that is authorized by the Bank is not to use for any reason without the Bank has given the applicant an authorization.
Stage 2. Application for Authorization
- Submit the Certified Application Form in the form of a BoU along with the necessary documents, such as
- A certified duplicate of Certificate of Incorporation and the memorandum and the articles of association, which indicate the core capital according to the 1st Schedule.
- A certified duplicate from the tax personal identification number (PIN) Certificate
- Valid license certified by a certified copy issued by the Uganda Communication Commission UCC.
- A certified document of management contract where the custodial Trust relationship is in place with the provider of mobile payments.
- The kind of service to be offered and the operation plan to provide these services.
- The business plan (with specifics as described within the Annex 1 to the first Schedule) with an estimated budget plan for the three first financial yearsthat shows that the applicant has the capacity to work efficiently and in a safe manner.
Submit your business plan that covers the following areas, but not limited to
- Background
- Structure of governance including ownership
- Audited financial statements covering at least 3 years;
- Directors’ identities and the individuals accountable for the management of the provider of payment services The custodial trustee.
- Internal controls and proposed structure
- This proposal includes Risk Management Policies and Procedures and the internal systems manual and
- Legal and regulatory compliance functions.
- an explanation of
- the governance arrangement of the applicant as well as internal mechanisms for control, which include the risk management, administrative, and accounting processes, which proves that these controls, governance arrangements and processes are proportionate, suitable, solid and appropriate;
- the internal controls mechanisms the applicant has formulated in order to meet the anti-money laundering requirements defined by the Proceeds of Crime and Anti-Money Laundering Act and the Prevention of Terrorism Act and the pertinent Regulations and guidelines.
- the organization structure of the applicant which includes the intention to use cash merchants, agents branches, outsourcing arrangements, and branches as well as its involvement in international or national payment
- The description of the method by which the provider of payment services will pay the obligations to make payments that result from the provision of electronic retail transactions;
- Officially confirmed notice of the company’s registered location of business as well as the potential locations where business operations will take place (Head Office branches, branch offices, agency as well as outlets, should there are any)
- The terms and conditions will be applicable to the clients, agents, and cash merchants.
- The current tax compliance certificate issued by Uganda Revenue Authority. Uganda Revenue Authority;
- Recent report by the Credit Reference Bureau;
- If the applicant is an affiliate of a foreign corporation or a foreign company, a letter of not expressing objections from the regulator recommending that they set up a payment system in Uganda must be sought;
- Make sure that the service provider has the capital initial as specified on the First Schedule;
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- Evidence must be documented in the bank statement of a microfinance institution or a licensed institution, which identifies the money as isolated or Government of Uganda Treasury Bills and Bonds not subject to lien
- The evidence should be under the names of the business and or the shareholders/ promoters of the company.
- The shareholders/ promoters must provide the Bank of Uganda authority to confirm that the legitimacy of the bank’s statement directly from the microfinance or bank institution.
- Promoters and shareholders need to give the distribution or allocation (ultimate beneficiaries number, citizenship, in percentage) of capital core to each shareholder/ promoter or company, which should indicate the most significant promoters/ shareholders (owning at minimum 5% of the share capital)
- Make a payment of a non-refundable cost of Ugshs. five million to the Central Bank by Bankers cheque or through any other means of payment that the Central Bank may prescribe.
- Any other documentation or details that the Bank might require.
- Complete the form and submit it Fit and proper forms for all important Directors, shareholders, trustees, and Managers who are in charge of the payments service provider.
Stage 3. Authorization
After a thorough assessment and the fulfillment of all the requirements set out in stage two and three;
- If there is a sense that the Bank of Uganda is satisfied that the applicant has fulfilled all requirements for a successful application The Bank shall , within seven days of receiving the authorization fee issue an authorization permit the applicant to begin the business of providing payment services.
- If the Bank denies an application for approval If it rejects an application for authorization, the Bank will communicate the reason of its decision to the applicant within seven days.
- The Bank can, in the event that the Bank refuses an application, impose conditions that must be followed by the applicant prior to the applicant can submit the application to be considered.
- The Bank could consider a request that was previously rejected, when the Bank is confident that the applicant has adhered to all of the requirements imposed.
Required Documents For Apply for Authorization Letter to Engage in Mobile Phone Money Services
- A certified replica of Certificate of Incorporation and the memorandum and the articles of association, which indicate the core capital in accordance with the first Schedule.
- An official duplicate of Tax Perso.
- The list of directors or shareholders.
- Directors’ Qualifications.
Office Locations and Contacts
Bank of Uganda
Lot 37/45 Kampala Road
P.O Box 7120, Kampala, Uganda
Tel:+256 414 258-441/6
Tel:+256 414 258 060/9
Tel:+256 417 302 000
Tel:+256 312 392 000
Fax: +256 41-4230878
Fax:+256 41-4233818
Email: info@bou.or.ug
SWIFT:UGBA UGKA
Web site: Bank of Uganda
Website: Contact Link Bank Of Uganda Branches.
- The bank has nine branches located in the following cities across the country:
Bank of Uganda.
Arua (Branch)
Location: Plot 27/29 Avenue Road (Inzikuru Road)
Address: P. O. Box 152 Arua
Tel:+256-476-420253
Site: Bank of Uganda
- Scroll down until at the end of page. Contact information is available.
Bank of Uganda
Fort Portal (Branch)
Location Lot 1 Kaboyo Road
Address: P.O. Post 562 Fort Portal
Tel: 256-483-422532 Web site: Bank of Uganda
- Scroll down until towards the very bottom of page. Contact details are readily available.
Bank Of Uganda
Gulu (Branch)
Airfield Road, Airfield Road
Address: P.O. Box 46 Gulu
Tel: +256-471-432330
Site: Bank of Uganda
- Scroll to at the end of page. Contact information is available.
Bank of Uganda
Jinja (Branch)
Location: Plot 3 Busoga Avenue/ Busoga Square
Address: P.O. Box 35 Jinja
Tel:+256-43-4121247
Site: Bank of Uganda
- Scroll to towards the very bottom of page. Contact details are readily available.
Bank Of Uganda
Kabale (Branch)
Location: Plot 137 Kabale Road
Address: P.O. Box 966 Kabale
Tel:+256-486-423595
Site: Bank of Uganda
- Scroll to at the end of page. The contact information is available.
Bank of Uganda
Masaka (Branch)
Location Lot 41 Kampala Road
Address: P.O. Box 1567 Masaka
Tel:+256-481-421246/8
Site: Bank of Uganda
- Scroll down until at the end of page. Contact information is available.
Bank of Uganda
Mbale (Branch)
The location: Plot 34-38 Cathedral Avenue
Address: P.O. Box 2402 Mbale
Tel: +256-454-433632
Web site: Bank of Uganda
- Scroll down until at the end of page. Contact details are readily available.
Bank of Uganda
Mbarara (Branch)
The address: Plot 2 High Street, Mbarara
Address: P.O. Box 1421 Mbarara
Tel:+256-485-420741
Web site: Bank of Uganda
- Scroll towards the very bottom page. The contact information is available.
Bank of Uganda
Kampala (Branch)
Place: Plot 37/43 Kampala Road, Kampala
Address: P.O Box 7120, Kampala
Tel: +256-41-4258441/6
Web site: Bank of Uganda
- Scroll down until at the end of page. Contact information is available.
Bank of Uganda Lira
(Currency Technology Center)
Place: Plot 2, Obote Avenue
Address: P.O. Box 211 Lira
Web site: Bank of Uganda
- Scroll to at the end of page. Contact details are readily available.
Eligibility
- All mobile phone companies
Any person who is capable of providing service of money transfer via mobile phones in Uganda must adhere to the following requirements:
- It must be a registered limited liability corporation;
- If you are not an Bank of Uganda licensed institution is not a partner, it must be an accredited institution. They is required to submit an application for approval from the Bank of Uganda seeking approval to provide mobile money services as a partnership with the provider of mobile money;
- You must submit proof of your financial standing along with a business plan as well as the risk management plan and
- It is essential to have in place the appropriate and tried and tested technology systems
Fees
Non-refundable cost of Ugshs. 5,500,000 payable to Bank of Uganda.
Validity
Valid for a very long time
Processing Time
The process takes about 60 days.
Instructions
To be eligible for authorization, your business is required to obtain authorization from Bank of Uganda and must fulfill all the conditions specified within the Mobile Money Guidelines 2013 and in the National Payment System Act, Regulations. You must give to the Bank of Uganda, detailed details of the services you are proposing to offer that are listed in the Authorization matrix A-Z comprising, among other things:
- specifics of the payment service business you’ll be running.
- the internal and governance procedures established.
- How do you achieve the capital requirements for capital.
- specifics of the persons accountable for the management of the proposed payments service provider.
If your business meets the requirements listed above and you wish to apply, submit the Application for Authorization that is outlined in the NPS Regulations in Form found in the Second and First Schedules.
Requirements Information
- Name of the business
- Background
- Structure of governance, including ownership;
- Audited financial statements covering at least 3 years;
- The identity of directors and other individuals accountable for the management of the provider of payment services The custodial trustee.
- Internal controls and proposed structure
- It is proposed to include Risk Management Policies and Procedures and the internal systems manual and
- Compliance with the law and regulations.
The Document is required
The Mobile phone money transfer companies are licensed for payment service providers by Bank of Uganda. Bank of Uganda. The definition of a Payment Service Provider is follows:
- A person, company, or any other organization that acts as a service provider for the sending receiving, storing, or processing payments, or providing other services in connection with payments made using any electronic system
- A person, company, or other organization that is the owner, operator, or possessor of or manages the public switched network that is used for the purpose of providing payment services.
- or any other individual, business or other entity who processes or maintains information on behalf of these payment service suppliers or users of the payment services.
- The industry of mobile financial services has seen a significant increase in the last few years since its inception at the beginning of 2009. The success and growth of these services is largely on the availability of a payment system that is user-friendly, simple to operate, trackable, and secure.
- The rise of mobile phone money transfer has placed Uganda on the global payments system map. It is noteworthy that mobile-based financial services for money have significantly improved access to financial services which is among the main goals of the Government to achieve its the vision 2040 goals.
- Particularly the case of mobile phone money transfer, platforms have gone beyond the traditional function of transferring funds to providing banking services to non-banked and banked customers.
- Commercial banks have formed partnerships with mobile operators to let customers login to bank accounts via mobile phones. Mobile phones are able to be used for opening and running virtual bank accounts as well as for access to traditional banking services, such as withdrawal, depositing and credit facilities , without any physical presence at the bank.
Information that could be helpful
- The Ugandan mobile money market has seen rapid growth since the introduction of mobile money in 2009. In the final quarter of 2015 there were 21.1 million mobile money users across Uganda, representing the penetration rate of around 54 percent. Alongside offering a cost-effective, convenient and secure means of transfer mobile money has led to the growth of financial inclusion. This has increased from 28 percent in 2009, to 54% in 2013. The explosive growth is happening in the context that are governed by “light touching” regulations in the industry that allows the first-movers to reap the benefits of their investments, however, it also raises competition concerns.
- The mobile money industry as well as the telecoms industry is defined by networks externalities, lock-in effects and the high barrier to entry, which can result in a concentrated market with one dominant participant.
- This research examines the effects of regulation based on light touch on the competitive dynamics of the mobile market for money in Uganda and compares it with the experiences in Tanzania where the regulations evolved away from simple touch approach to a more extensive framework as the industry developed.