Latest Posts

Parliament Passes Bill Regulating Mobile Money

The Parliament of Uganda has passed the National Payment Systems Bill, 2019, that will among others regulate and provide for the safety and efficiency of payment systems and issuance of electronic money.

The Bill presented to the House by State Minister for Finance, Hon. David Bahati on Thursday, 14th November 20l9 seeks to create a comprehensive payment system law in Uganda.

According to a report on the Bill by the Committee on Finance, Planning and Economic Development, the absence of a national payment systems law has created uncertainty in the market regarding licensing of payment systems service providers who are not financial institutions.

These include among others telecom companies providing mobile money services as well as mobile applications that offer services in exchange for money.

Committee Chairperson, Hon. Henry Musasizi told the House sitting on Thursday, 28 May 2020 that there was limited regulation and oversight of payment systems, coupled with inadequate protection of payment and securities settlement systems.
“Uganda’s economy has seen a shift from traditional payment systems to the new systems like electronic and mobile money. But licensing, regulation and supervision of providers of emerging payment systems is lacking thus posing a danger to users of these payment systems,” Musasizi said.

He added that  managing the regulation of mobile money and other financial services offered over communication platforms was weak and did not sufficiently address all issues regarding digital financial services.

The report states in part that, “The broad legal framework for the financial sector does not cover non-financial institutions like MTN, Airtel, Uganda Telecom, PayWay, SafeBoda and Uber that provide payment systems. This bill will address the regulatory gaps that have affected users of these payment systems for some time”.

The Bill will also cater for fair competition in the sector with provisions that will ensure operators do not engage in activities that could unfairly prevent or distort competition in relation to any activity relating to payment systems.
“This Bill is going to protect small players in the industry especially financial technology companies which are mainly owned by youth against the dominant players in the market,” Musasizi said.

All provisions of the Bill will take immediate effect after assent to by the President and publication in the Gazette; key being Clause 74 that provides for a transitional period of operations under existing laws, to operation under the new law when it is in effect.

Clause 74 states that, “A person who, before the commencement of this Act, obtained a written approval of the Central Bank to operate a payment system or issue a payment instrument or carry out any activity for which a license is required under this Act, shall within six months of commencement of this Act apply for a licence in accordance with this Act”.

The Attorney General Hon Byaruhanga makes his contribution on the Bill

MPs welcome new legislation on National Payment Systems

Members of Parliament commended Government for presenting the Bill which they said was long overdue, and would protect funds of Ugandans operating via the different electronic money systems.
“This mobile money is being used by operators at the expense of the owners of the money [customers]. Some of this money is lent to banks and it accrues interest but the owners do not get anything. The new Bill is going to turn this around,” said Hon. Michael Mawanda (NRM, Igara East)

Padyere County MP, Hon. Joshua Anywarach said the Bill would go a long way in allowing telecom companies to easily transfer funds from the mobile money platform to escrow accounts, which can only be done by banks under existing laws.

Hon. Okupa Elijah (FDC, Kasilo County) said the Bill will harmonize charges by telecom companies on mobile money services, noting that “…different telecom companies have been placing different charges on withdrawals and transfers of this money so the Bill will address that issue”.

Source: Parliament of Uganda

Loading

Don't Miss

EXPOSED! Muyenga Tycoon’s Maid Cited In Land Wrangle

In recent days, Muyenga, Y2K Zone a push Kampala suburb,

Parliament Orders Closure Of Fuelex Petrol Stations For Adulterating Fuel

The Parliamentary Committee on Trade And Industry led by Mbarara

Big Story: Parliament Probes UETCL Bosses Over Corruption, Mismanagement & Controversial UGX 28Billion Compensation Deal

Members of Parliament on the Committee on Environment and Natural

‘Back Off Buganda Land’ Kabaka Mutebi Castigates People Pushing For Abolition Of Mailo Land Tenure System

The Kabaka of Buganda Kingdom Ronald Muwenda Mutebi II has

Big Story: IGG Probes Over Shs1bn Ubos Fraud

The Inspector General of Government (IGG) is investigating top officials

EXPLOSIVE: How Speaker Kadaga & Confidant Hon. Okupa Spent Over US $764,000 (Shs2.8 BN) In-less Than 2 Years In Travels Abroad

Since taking office as Deputy Speaker of Parliament way back

Ham Vs DTB Appeal: Bank Of Uganda Runs Out Of Case, Leaves DTB To Carry Its Own Cross

Bank of Uganda has officially quit the case involving city

Amnesty International Joins Push To Free Presidential Runner Robert Kyagulanyi

The Ugandan authorities must immediately lift the police and military

Exporters Call For Strong Action Against EAC States’ Trade Barriers

Manufacturers have called on the government to impose tough measures

Big Story: How KCCA Officials Messed Up Youth Fund Programs, Stole Billions of Gov’t Funds In Shoddy Deals

Kampala: If there is any government Authority that frustrating President

I Predict Museveni, NRM Victory In 2021 Elections

By Faruk Kirunda Kampala: As we dive into the high

Crisis: Lord Mayor Lukwago Defies Court Order, Appoints Balondemu As Chairman K’la District Land Board

Veteran lawyer Hajji Elias Lukwago, who is the Kampala city

Scandal: Stanbic Bank Bosses Allegedly Steal Borrowers’ Land Titles, Mortgage Them To Dfcu Bank

Several officials at Stanbic Bank are in deep trouble after

Scandal: KCCA Officials On Spot For Blowing Shs 8Bn Under The Guise Of Renovating Old Tax Park

Several officials at the Kampala Capital City Authority (KCCA), are

Covid-19 Crisis: Ugandan Students Expected To Sit For UNEB Exams In March 2021

All indications are that a dead year will not be

BoU To Appeal In Supreme Court Over Trashed Crane Bank Case

The Bank of Uganda (BOU) has said it will be

Shame As Top Police Boss Is Convicted Of Car Theft, Ordered To Pay Over Shs282M

Untold shame has engulfed the Uganda Police a senior officer

Just In! Energy Mafias Rock Parliament As Patriotic Young Turks Question AIGP Akullo’s Involvement In Min. Energy Corruption

Panic has rocked Parliament as renowned Parliamentarian and Lawyer Hon.

Energy Mafias Debunked Part III: How Werikhe, Turyagyenda Corruptly Swindled Shs15 Bn For 3 Electricity Distribution Projects In Acholi, Bunyoro & Kiruhura

FUNDING THE COUP THROUGH ENERGY AND MINERALS CORRUPTION By the

Just In: Top Energy Officials Fired On Presidential Orders Over Massive Theft Of Electricity Distribution Funds

By Our Reporter Kampala: Two senior officials of Rural Electrification

Salary Scam Hits KCCA AS 29bn Is Paid To Ghost Workers

After Eng Andrew Kitata took over as the acting Executive

UPDF Marines Kill Two Fish Dealers,Injure 12 Residents

Soldiers attached to Fisheries Department on Sunday shot and killed

Court Orders Nine Youths To Defend Themselves In Pastor Kayanja’s Sodomy Case

Nine youths have been ordered by Mwanga II Magistrates Court