Tanzanian regulators pass bill on e-payments fraud-proof system

Mussa Azan Zungu, a Tanzanian regulator, has claimed that the proposed law has come as a solution to electronic fraud and it is also meant to provide an efficient customer-centred payment system, dailynews.co.tz reports. However, Mr Zungu cautioned the government against the electronic magnetic pulse that could jam systems and destroy communications. He said this could happen because the country was not in control of the server.

Mr Zungu added that the more the country uses electronic devices controlled by other people, the more dependent and vulnerable it would be. He suggested that the country should develop a device that can withstand the electronic magnetic pulse. He said computer hacking is widespread in the country at the moment, saying further that the syndicate should be dealt with accordingly through the government security apparatus systems.

Suzan Lyimo, member of the Tanzanian parliament, said the government should ensure that it sets out clear laws and legal structures that affect payments and bind the telecoms to lower service charges in money transfer. She also stated that more than 65% of Tanzanians are doing their transactions through mobile phone services although mobile operators charge more than banks do.

Ms Mkuya, memeber of the parliament, said that laws aimed at mitigating various risks and enhancing the efficiency and effectiveness of payments system and that lack of laws to govern cyber crime and electronic financial transactions makes the system very vulnerable for fraudsters. She said several neigbouring countries have already adopted the law naming them as Kenya, Rwanda, Botswana, Zambia, Zimbabwe, South Africa and Mozambique.

The main objectives of the national Payment System include to minimise payment, clearing and settlement risks as well as to achieve reliable, secure, convenient, cost effective, universal and integrated systems to meet the needs of the economy. It also targets to impose punitive measures for those who will contravene the laws. Ms Mkuya said the Tanzania Inter-bank Settlement System (TISS) which came into use in 2004, facilitates settlement of inter-bank transfers and clearing houses balances.

The system, she said, aims at improving efficiency in payment systems by eliminating settlement lag for high value and time sensitive payments. It also minimises settlement risks. It is also extended to the Tanzania Revenue Authority (TRA) and Zanzibar Revenue Board (ZRB), where funds from specific Tax Payers are remitted and received by TRA and ZRB on Real Time basis.