Assessing compliance challenges in supervised financial institutions: a case study of forex bureaus and money remittance in Kampala district

Abstract

This research studied compliance challenges in supervised financial institutions with the main focus on forex bureaus and money remittance as the case study. The objectives of this study were, to identify the triggers and changes within the financial services industry, to find out the causes of compliance challenges in forex bureaus and money remittance and to establish the possible strategies to the causes of compliance challenges. The study was descriptive in nature and was carried out in forex bureaus and money remittance companies in Kampala-Uganda. The sample comprised of 48 respondents and simple random sampling method was used to determine the sample. Primary data was obtained from the respondents mainly through administering the questionnaire and Statistical Package for Social Sciences (SPSS V.25) was used in data analysis. The findings of the study revealed that deregulation was the major trigger and change within the financial services industry. The study also revealed that the major causes of compliance challenges were incapacitation of those regulated and the cost of compliance and the suggested strategies/solutions to the causes of compliance challenges were creation of training systems and reward and incentives. The recommendations of the study included government/regulatory intervention in acquisition of centralized management information systems that aid compliance and ease of customer due diligence and enhanced trainings of compliance teams of forex bureaus and money remittance.