Connect with us
  • MY MONEY

    We Have Not Licensed Any Person Or Company To Offer Such Services – BoU Blacklists Use Of Cryptocurrency In Uganda …

    Published

    on

    Bank of Uganda says it has not licensed any institution to sell cryptocurrencies

    Bank of Uganda (BoU) has revealed that it has not licensed any company or any person to offer cryptocurrency services in Uganda thus cautioning the public not to get involved in it.

    Andrew Kawere, the acting director of the national payments system noted that this is in line with the official government position as communicated by the Ministry of Finance, Planning and Economic Development in October 2019.

    “This is to advise that Bank of Uganda has not licensed any institution to sell cryptocurrencies or to facilitate the trade-in crypto-currencies, ” Kawere said.

    Many Ugandans, especially those in urban centers seeking a supplementary income and the unemployed have invested in cryptocurrencies to make extra cash. However, BoU said it is a big risk and several Ugandans have lost millions of money in such fraudulent transactions.

    According to BoU, there are several media reports and adverts telling the public that they can convert cryptocurrencies into mobile money and vice versa which is not true.

    “We are also aware that such a conversion cannot happen without the participation of the Payment Service Providers or Payment System Operators,” BoU noted.

    The Central Bank has consequently warned all licensed entities under the National Payment Systems Act, 2020 to desist from facilitating cryptocurrency transactions.

    “Bank of Uganda shall not hesitate to invoke its powers under Section 13(1)(b) and (f) of the NPS Act 2020 for any licenses that will be found in breach of the above directive,” BoU added.

    In 2019, the Finance Ministry stated that despite the emergence of the practice of using, holding, and trading in cryptocurrencies in the country, the holders bear the risk since the same is not issued or regulated by any government or central bank in any part of the world.

    The ministry clearly noted that the government of Uganda does not recognize any cryptocurrency as legal tender in Uganda adding that it has also not licensed any organization in Uganda to sell crypto-currencies or to facilitate the trade-in crypto-currencies and so these organizations are not regulated by the government or any of its agencies.

    It also added that unlike other owners of financial assets who are protected by government regulation, holders of crypto-currencies in Uganda do not enjoy any consumer protection should they lose the value assigned to their holdings of crypto-currencies, or should the organization facilitating the use, holding or trading of crypto-currencies fail for whatever reason to deliver the services or value they have promised.

    Cryptocurrencies are digital assets that are designed to effect electronic payments without the participation of a central authority or intermediary such as a Central Bank or licensed financial institution.

    Cryptocurrencies may be used to effect anonymous electronic payments or bought and held for speculative purposes in the expectation that their value will rise at a future time, whereupon they could be sold for a profit.

    However, this digital payment system doesn’t rely on banks to verify transactions presenting a risk to members of the public.

    Crypto-currencies tend to change value rapidly over time. While holders of crypto-currencies may make profits when their value rises, they will be exposed to losses when their value falls.

    The nature of crypto-currencies makes them attractive for use in criminal transactions such as money laundering, sale of prohibited goods and services, and fraudulent ventures such as Ponzi and pyramid schemes.

    According to records, over 1,000 Ugandans lost over Shs.3 billion in online digital transactions between 2018 and 2020 to fraudulent cryptocurrency dealers.

    Victims from Kampala, Masaka, Wakiso, Kabarole, Bushenyi, Ibanda, Kagadi among other parts of the country lost billions of money when the companies abruptly closed and the known dealers disappeared in thin air and authorities have nothing much to do since such online transactions are not regulated.

    Several cases have been reported to police but all in vain since the dealers tend to erase all their details and records after taking billions of money from their victims.

     

    By Kobusiinge Monica

    Comments

    CRIME

    Stanbic Bank In Trouble, Client Petitions Court After She Was Defrauded Of Shs68m Via Flexi Pay…

    Published

    on

    Stanbic Bank CEO Anne Jjuuko whose bank is under fire

    Nakku Joweria a resident of Kyebando has sued Stanbic Bank Uganda limited for failing in its duty of protecting her saving account leading to defrauding her of shillings 68 million which was withdrawn from her account in a period of 24 hours through Flexi pay an application she had never registered for.

    In a court case filed before the Commercial division of the High Court of Uganda and coming up for directions in the registrar Christa Namutebi’s chambers, on the 24th June, 2024 at 9:40am, Nakku Joweria through his lawyers of Kimanje Nsibambi Advocates contends that between 7th and 8th February, 2023, there was unauthorized withdrawal of 68 million shillings from her savings account No. 903000026244 via the Flexi Pay Banking, a platform of Stanbic Bank and a total of 28 unauthorized transactions were conducted by fraudsters who fraudulently accessed her account undetected by the bank.

    She questions how a savings account which had a transaction limit was significantly exceeded during the unauthorized and undetected fraudulent transactions which led to her losing her’ money.

    “Our client has been a loyal client of Stanbic bank since 2001 way before the implementation of the FlexiPay system and at no point did she sign up for or activate the flexi pay on her savings account. The 28 unauthorized withdrawals from our clients account using four unknown Airtel lines raises serious questions and/ or lapses on the part of the bank for which we hold the bank specifically liable for the loss since it was in a better position to detect and prevent this fraud had it exercised reasonable care to detect these suspicious 28 unauthorized transactions that took place within 24 hours on a savings account that was rarely operated by our client,” reads the documents in parts.

    She also questions the effectiveness of the bank’s authentication protocols with their flexi pay system, effectiveness of the transaction monitoring to the extent of allowing 28 unauthorized transactions within 24 hours using four unknown Airtel lines and significantly exceeding the account limit.

    Nakku wants court to direct Stanbic Bank to reimburse 68 million to her account that was fraudulently withdrawn and pay her the costs and damages.

    On 6th February 2023, Nakku Joweria lost her phones to the robbers on her way to work at around 9pm. She reported the incident to police at 9am and to the telecom companies on the 7th February 2023.

    However, the telecom companies MTN and Airtel couldn’t process the new simcards because she had misplaced her original National Identity card.

    The robbers used her MTN number to open up a wallet on the Flexi pay which number had four other Airtel numbers that don’t belong to her which they used to make 28 unauthorized withdraws of 68 million shillings from her Stanbic bank saving account on the 7th and 8th February in a space of only 24 hours.

    When she went to withdraw some money from her account on the 6th, March 2023 that’s when she realized that her money was fraudulently withdrawn from her account.

    She wrote to the bank manager complaining about the matter and the bank promised to do thorough investigations to reveal how the money was withdrawn by the fraudsters.

    Through her lawyers of Kimanje Nsibambi Advocates, she wrote a demand notice to Stanbic Bank manager to reimburse her money since it was their weakness and fault for failure to efficiently protect her account.

    The bank through Twine Arnold, the senior legal advisor, Risk and Dispute Management wrote back with an out of court settlement request.

    However, the bank had proposed to reimburse only 34 million out of the 68 million on the premise that the settlement shall not be taken as admission of liability by any of the parties, a proposal she rejected and instead thought for legal redress in the commercial court.

     

    By Sengooba Alirabaki

    Comments

    Continue Reading

    MY MONEY

    Minister Kabanda Panics As Traders Plan To Front Ssekitto To Battle Her For Kampala Central MP Seat…

    Published

    on

    KACITA'S Issa Ssekitto and Minister Minsa Kabanda

    Kampala City Traders Association (KACITA) spokesperson Issa Ssekitto has confirmed that come 2026, he is pondering contesting for the position of Kampala Central Division Member of Parliament as an independent.

    Ssekitto revealed that his decision was based on the number of requests he has received from desperate traders who think that the only way to fight bad policies and laws made against them is to have their own in the parliament to argue their case.

    It should be noted that when traders met President Museveni in May 2024 at Kololo independence ground, they warned legislators in parliament who have been passing laws against them that they are going to sponsor their own candidates against them come 2026.

    They claimed that the legislators and other leaders who they showered with votes in the previous elections have betrayed them and it is high time they take over the country’s leadership.

    Sources inside KACITA told theGrapevine that Nagenda Musoke their chairperson also plans to stand for a Member of Parliament in one of the constituents in Mukono district.

    John Kabanda also plans to stand as councilor representing Kampala Central Division on the Lord Mayor’s Council.

    The traders insist that Kampala city and Metropolitan senior minister Hajjat Minsa Kabanda has not helped them as a minister and accuse her of sidelining with their tormentors, especially the Uganda Revenue Authority (URA).

    Since 2023, Minister Kabanda has been conducting clandestine political mobilization to replace Muhammad Nsereko who declared that he is not going to contest in 2026.

    Because of Kabanda’s declaration, Bobi Wine’s elder brother Fred Nyanzi Ssentamu shifted his interest from contesting for Kampala Central MP Seat to Lord Mayor fearing that chances are high that Kabanda will defeat him.

    Traders want parliament to remove EFRIS and reduce taxes on commodities especially imported items.

    However, President Museveni assured them that his government will not accept their prayers because they are against the country’s development.

     

    By Hadijjah Namagembe

    Comments

    Continue Reading

    CELEBRITY GOSSIP

    Bank Bosses In Trouble For Allowing Sanctioned M7 Gov’t Official To Access Money On Her Account..

    Published

    on

    L-R: Agnes Nandutu, Goretti Kitutu and Speaker Anita Among were all recently sanctioned

    The Western powers have kicked off investigation into allegations that bank bosses in Kampala allowed President Yoweri Kaguta Museveni’s sanctioned government officials to access and use their financial services.

    Sources in one of the top banks intimated to theGrapevine that their boss has been summoned at their bank headquarters in the United Kingdom to record a statement detailing how the incident happened and why.

    Sources claim that this senior government official was informed early that President Museveni was briefed about her sanctions and when she asked her lawyers what the sanctions meant, they quickly advised her with immediate effect to rush to the bank and withdraw her money which she did.

    “She came herself and withdrew her money and went with it, but we don’t know whether our bosses were already informed about the sanctions,” a source said.

    This bank source narrated to us a scenario where the former Inspector General of Police Gen. Edward Kale Kayihura’s close relative was denied the opportunity to open a bank account in their bank on grounds that his father was sanctioned and their bank was not allowed to do any financial business with him.

    Recently, the State Minister for Lands Dr. Sam Mayanja revealed that retired High Court Judge Moses Mukiibi told him that because of the sanctions, he could no longer access his money in the banks.

    He added that they asked President Museveni to intervene.

    However, the judiciary last week issued a statement noting that Justice Mukiibi is receiving his retirement benefits as a retired judge.

    Veteran journalist Joseph Tamale Mirundi explained that western powers give a sanctioned official six months to clear whatever they have in their respective countries including repatriating their relatives from their countries.

    But Alex Waiswa Mufumbiro, the National Unity Platform (NUP) deputy spokesperson said that the sanctions take immediate effect and all the money on bank accounts and properties of the sanctioned persons in foreign countries is frozen immediately when the sanctions are announced.

    Mufumbiro’s explanation was supported by a powerful security officer who told theGrapevine that recently, President Museveni posted one of his sanctioned security chief to one of the neighbouring countries; however this officer failed to access his bank account and when he tried to fix his ATM card into the ATM machine, it was swallowed by the machine and he immediately called Museveni pleading with him to withdraw him from the said country.

    Recently, the United Kingdom sanctioned Annet Anita Among the speakers of parliament, Agnes Nandutu the former State Minister for Karamoja affairs and Mary Goretti Kitutu the former senior minister for Karamoja affairs.

    Other government officials who were sanctioned include; Gen. Kayihura, Lt. Gen. Peter Elwelu, Maj. Gen. Abel Kandiho, Maj. Gen. Sabiiti Muzeyi, Maj. Gen. Don Nabasa and a number of others including members of parliament.

     

    By Sengooba Alirabaki

    Comments

    Continue Reading

    like us

    TRENDING

    theGrapevine is a subsidiary of Newco Publications Limited, a Ugandan multimedia group.
    We keep you posted on the latest from Uganda and the World. COPYRIGHT © 2022
    P.O Box 5511, Kampala - Uganda Tel: +256-752 227640 Email: info@thegrapevine.co.ug
    theGrapevine is licenced by Uganda Communications Commission (UCC)