THE Bankers’ Association of Zimbabwe (BAZ) has called for legislation to govern mobile banking, which is currently not catered for in the Banking Act.
BY VICTORIA MTOMBA
BAZ legal chairperson Aisha Tsimba told a Parliamentary Portfolio Committee on Budget and Finance yesterday that the central bank needed to move fast to ensure that mobile banking has strict legislation similar to countries such as Kenya.
“There should be subsidiary legislation to govern mobile banking. Currently mobile banking is based on a contractual agreement between the bank and the service provider and there is no law that oversees it in the banking area,” she said.
BAZ was responding to Gokwe Member of Parliament Dorothy Mangami, who wanted to know if mobile banking operated under some regulations, since most of the banks now have mobile banking desks and what effect this would have in the event of a mobile banking collapse.
The country’s three mobile phone network operators Econet, Telecel and NetOne offer mobile banking services. During the first quarter of this year, mobile money subscribers increased by 7,3% to 5,8 million from 5,3 million recorded in the last quarter of 2014.
The number of agents also increased from 23 379 agents to 25 427 agents, but the total value of money transferred in the quarter declined by 7,7% to record $406,9 million from $445,7 million.
BAZ also said the definition of close relative in the Banking Act Amendment Bill was too wide, saying this could lead to breach of the provision in which it is used.
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The term close relative is used in relation to insider loans and directors’ disclosure of assets. The definition is extensive as it includes parents, siblings, grandparents, in laws and the director’s children and spouse.
“It will create an onerous burden on the directors when they disclose their assets annually, having to acquire information on assets, business activities and financial and proprietary interests from all the people listed as close relatives,” BAZ said.
