Ugandan court says mobile money illegal, but no jurisdiction

Tuesday, June 2, 2015

A court has pronounced that mobile money business operated by the five major telecommunication companies is illegal, New Vision reported. Justice Christopher Madrama of the Commercial Court in Kampala ruled on 29 May that a person who is not licensed to transact a financial business does so illegally, and it is a crime only handled by the Director of Public Prosecutions (DPP).

Madrama was delivering a ruling in a case where Bugweri County lawmaker Abdu Katuntu had filed a petition seeking a declaration to have mobile money regulated under the Financial Institutions Act. Katuntu wanted a declaration that the mobile money services are currently operating outside the licence issued to them by the Uganda Communications Commission (UCC) to operate as telecommunication companies.

Source: Telecom Paper (link opens in a new window)

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financial inclusion, government, mobile banking, mobile finance, mobile money, regulations