CODE OF CONDUCT

The code of conduct is made by the Uganda Forex Bureau Association in consultation with Bank of Uganda by Virtue of the powers conferred upon the bank by the Exchange Control (Forex Bureau Order 1991 as licensor and superintendent of Forex Bureau. The Code is not intended to replace or amend any of the provisions of the other laws currently in force relating to Forex Bureau operations and control.

Introduction:
The code is intended to guide Forex Bureau Operators in ensuring professionalism, high ethical standards and fair play while carrying out business and it outlines the basic rules and guidelines for the operation of Forex Bureaus. The code shall be updated from time to time as the need arises.

All licensed Forex Bureaus shall be members of the association.

1. Operational Standards

  • All Forex Bureau operators shall ensure that all their transactions and professional conduct reflect positively on the image of the Association.
  • All members of the association shall be deemed to have accepted to be bound by this code and no bureau shall opt out of this code.
  • Each bureau shall keep a copy of this code and ensure that all employees read and adopt these guidelines in their day-to-day operations.
2. Operational Guidelines
Bureau management should ensure that all staff are conversant with and deal accordingly to the set operational standards and guidelines:-
  • All transactions must be spot, i.e. immediate exchange of value across the counter with no remnant of business postponed to another day or time.
  • A Forex Bureau shall not engage in direct transfer of funds abroad, unless licensed to do so by BOU. Transfer of funds abroad must be effected through authorized commercial banks.
  • All Forex Bureaus shall keep and issue, for every transaction, a BOU official receipt in a format described by BOU.

3. Mandatory Displays
All bureaus must display in a conspicuous place the following information.

  • A valid operational license issued by BOU. Where a license has not been issued, (e.g. under renewal process), the authority granted by BOU to continue operations would suffice.
  • The buying and selling rates of all foreign currencies traded by the bureau. Where special rates are offered, this should be clearly spelt out for the public's guidance.
  • Notices to the public issued by Bank of Uganda.
4. Precautions
Bureau staff must be vigilant against fraud, forgery, counterfeit instruments, etc, especially staff must:
  • Check that all currency notes purchased/sold are genuine.
  • Training in the detection of fake counterfeit notes should be under taken by all bureau operators.
  • Counterfeits should not be traded in the bureaus and if detected should be cancelled in the presence of the customer, confiscated and forwarded to BOU for further analysis. Where possible details of the person presenting the counterfeit should be obtained cautiously.
  • Bureau staff should not involve themselves in fraud and forgeries e.g. by tampering with instruments like drafts, cheques, T/Cs, etc.
  • A bureau is responsible for the actions of any of its staff and as such management should ensure that their staff are trustworthy and people of high integrity e.g. instances of unpaid cheques drawn by members of staff should not arise.
  • Bureau staff should desist from speculative activities
  • Bureaus are cautioned against engaging in or abetting money-laundering activities and are required to report any suspicious transactions to BOU.

5. Security
All bureaus should:

  • Provide adequate security at their premises.
  • Share information that enhances protection of the market e.g. on staff dismissed for unprofessional conduct, like attempted robbery, involvement in money laundering, unlicensed illegal dealers, etc.
6. Maintenance of Records
A bureau must:
  • Maintain all records pertaining to the bureau at its premises.
  • Maintain accurate and proper books of accounts in its day-to-day operations.
  • Present all its records to BOU staff for inspection as and when required to do so.
  • Prepare annual accounts at the end of its financial year.
  • Ensure that the accounts are audited by auditors dully registered by the institute of Certified Public Accountants of Uganda (ICPAU).
  • The audited accounts must be submitted to BOU within 3(three) months after the end of the bureaus financial year.
NOTE:
1). All bureaus are required to operate within the basic framework outlined in this code.
2) Failure to observe any of the outlined operational requirements may result in disciplinary action as approved by the association;
  • Legal action will be taken against the concerned bureau.
  • The association may recommend to BOU withdrawal of the operational license of that bureau.