KAMPALA - Uganda said on Thursday that it planned to increase the minimum capital requirements for foreign exchange bureaus and money transfer firms.

Existing regulations governing those businesses were enacted in 2004, and the higher capital requirements are designed to help the central bank effectively handle fraud complaints and instil market discipline, the finance ministry said in a statement.

A foreign exchange bureau will need minimum capital of 50 million Ugandan shillings ($13,600), up from 20 million shillings previously. A money transfer company will need 200 million shillings capital, from 50 million shillings before.

Foreign exchange bureaus will also have to make a security deposit with the central bank of 25 million shillings.

The finance ministry did not say when a bill will be introduced in parliament to make the changes, but a draft has already been approved by the cabinet.

($1 = 3,675.0000 Ugandan shillings)

(Reporting by Elias Biryabarema Editing by Alexander Winning and Toby Chopra)