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UMRA issues tough warning to unlicensed money lenders

Uganda Microfinance Regulatory Authority (UMRA), the agency mandated to regulate, license and supervise all the Tier IV Microfinance Institutions and Money Lenders in Uganda has issued a tough warning to unlicensed money lenders.

According to an official statement from UMRA’s Executive Director, Emong Ojulang, some unlicensed individuals are conducting money lending business in total disregard of the provisions of the law.

“It has come to the attention of the Authority that some unlicensed 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 license.” Ojulang said in a statement.

He added that the Tier 4 Microfinance Institutions and Money Lenders Act, 2016 is now effective. The Authority has noted with concern the mushrooming unlicensed 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 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 finalized plans to launch enforcement operations against all those operating outside the law.” Ojulang revealed.

He further encouraged borrowers to transact business with only licensed money lenders to avoid being cheated.

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