On 14^th October 2020 BoU issued a statement on financial institution business regulated by Bank of Uganda clarifying that BoU does not regulate extension of loans/credit or the financing of commercial transactions that are funded;

1. Using funds owned privately by individuals, corporates, private equity funds local or foreign;
2. Using funds of members of small member-based collective savings or lending organizations that do not advertise themselves as safe keepers of money or solicit for funds from the public in Uganda;
3. Using funds obtained from foreign banks that do not take deposits from the public in Uganda;
4. Using funds of International, Regional or Local Development Finance Institutions whether such funds are advanced and administered directly by those institutions or through financial institutions in Uganda.
5. Using funds of Development Institutions, be they multilateral or bilateral, whether such funds are advanced and administered directly by these institutions or through financial institutions in Uganda. and that;
6. BoU’s regulatory and supervisory powers only apply to financial institution business conducted by BoU licensed entities in or outside Uganda or activity which should be licensed as such in Uganda.

The decision of the trial court was appealed against by DTBK and Diamond Trust Bank Uganda on eleven grounds. However, for purposes of this article, we shall focus on the impact of the court of appeal decision on cross border financial services.