The Bank of Tanzania (BoT) has cautioned mobile phone money transfer operators to ensure that they put in place appropriate measures to safeguard the integrity of their operations and protect their customers against money transaction risks.
Speaking in Dar es Salaam recently, Deputy BoT Governor Juma Reli said with the increase in mobile phone money transfer services by the wider general public, inherent system-wide risks and implication are also bound to increase.
He said customers need to be protected against fraud, money loss and invasion of privacy.
The operators must ensure that the system in place provide adequate safeguards against money laundering, he noted.
“They have to put in place the system which is capable of mitigating the risks of access by non-authorized persons such as hackers and others,” he noted.
Further, he said, the system has to ensure the seamless and secure flow of the services, operating platforms within reach and disaster recovery sites in secure locations and tested at all times.
Mobile finance service is changing the ways of life for many by offering convenience, reach and most important financial inclusion for the previously off reach population, he noted.
“As a regulator our objective is to offer effective and better guidance in all policy and oversight activities of payment system operators and regulators,” he stated.
The deputy governor said the Central Bank is working on regulations whose objective is to ensure that e-money issuers and payment service providers conduct their businesses prudently and in accordance with the prerequisites of the relevant legal provisions.
They include the Banking Act, Central Bank of Tanzania Act, the Proceeds of Crime and Anti-Money Laundering Act, the Companies Act, the Microfinance Act, and the Saccos Societies Act.