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Tier 4 Microfinance Institutions and Money Lenders Act.

Country/Territory
Uganda
Document type
Legislation
Date
2016
Source
FAO, FAOLEX
Long title
An Act to establish the Uganda Microfinance Regulatory Authority; to provide for the licensing and management of tier 4 microfinance institutions; to provide for management and control of money lending Business; to establish the SACCO Stabilization Fund; to establish a SACCO Savings Protection Scheme; to provide for a Central Financing Facility; to provide for licensing of money lenders; to provide for self help groups and commodity microfinance; to provide for receivership and liquidation of a Tier 4 microfinance institution; to repeal the Money Lenders Act, Cap. 273 and, for related matters.
Subject
Agricultural & rural development
Keyword
Agricultural development Credit Community management Non-governmental entity Financial agricultural measures
Geographical area
Africa, Eastern Africa, Landlocked Developing Nations, Least Developed Countries
Abstract

This Act provides rules for the micro-financing business in Uganda. The purpose of this Act is (I) To regulate tier 4 micro finance institutions by (a) facilitating the microfinance industry to promote social and economic development; (b) promoting legitimacy and building the confidence of members, customers and investors in the microfinance business; (c) establishing prudential standards for microfinance institutions in order to safeguard the deposits of members, prevent financial system instability of the funds of depositors and ensure stability of the financial system; and (d) applying non-prudential standards to tier 4 microfinance institutions by(i) defining sources of capital; (ii) establishing default protection mechanisms; (iii) enforcing compliance with generally accepted accounting practices; and (iv) instituting mechanisms for the prevention of fraud and financial crimes (II) To provide a regulatory framework for the management and control of money lending business. For the purposes of this Act, tier 4 micro finance institutions shall comrise (a) Savings and Credit Cooperative; (b) non deposit taking microfinance institutions; ( c) self help groups; and ( d) community based microfinance institutions.

Full text
English
Website
www.ulii.org