Uganda's Remittance Corridors from United Kingdom, United States and South Africa

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Table 2.9. (Continued) United Kingdom

Highly significant source of remittances Significant source of remittances Estimated at US$127 million to Estimated at US$70 million to US$162 US$296 million (19% to 45% of the million (11% to 24% of the total inflows) total inflows)

South Africa Seemingly insignificant However, regional source as well as a sending country in South-South remittance corridor Remittance flows cannot be estimated

Remittance Mechanisms and Service Providers Access to Financial Services

Documented migrants enjoy full Documented migrants enjoy full access. access. Undocumented workers have access to Undocumented workers have access certain formal financial services such as to certain formal financial services such MTOs that allow remittance transfers without as MTOs. ID if under threshold.

RSPs

Banks International MTOs Ethnic-based MTOs Informal RSPs

Documented migrants enjoy full access Undocumented workers have no documentation, so they use informal RSPs.

Banks International MTOs: Western Union and MoneyGram Fewer informal RSPs

Banks International MTOs: MoneyGram and Western Union Authorized forex dealers (some are subsidiaries of commercial banks) Post Bank (postal services) Informal (friends and family)

Remittance Amounts and Costs Average Monthly Principal Amount Remitted to Uganda

US$605

US$400–US$600

Unknown

Cost of Remittances

Comparatively high (ranges from 6.0% to 16.8% of the principal amount)

Comparatively low (ranges from 3.5% to 17.4% of the principal amount)

Comparatively high (ranges from 16.2% to 33.9% of the principal amount on average)

BSA and the USA PATRIOT Act Each state authority regulates money transfer business

Exchange Control Regulations, 1961 Financial Intelligence Centre Act, 2001

Regulatory Framework Laws and Regulations on Remittances

Payment Services Regulations 2009 MLR 2007 Proceeds of Crime Act (Part 7) The Terrorism Act 2000 (as amended by the Anti-Terrorism and Crime and Security Act 2001 [Section 21A])

World Bank Working Paper

Uganda as Source of Remittance

United States


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