Commodities

Laws underway to regulate internet banking

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By EPHRAIM KASOZI & BEATRICE NAKIBUUKA

Posted  Friday, February 21  2014 at  02:00

In Summary

Legislation to replace self-regulatory frameworks.

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Kampala

Measures to enact a law to regulate mobile money and Internet banking in the country have been finalised. The move will require new technology developments adopted in the e-commerce, e-banking and payment systems.

The Uganda Law Reform Commission (ULRC) last week said a process has started to enable effective management and regulation of mobile money and Internet banking practice in the country.

ULRC Secretary Lucas Omara Abong said they have commenced the process to gather views, comments and recommendations from stakeholders to build a law that would take care of the transactions.

“We are asking stakeholders to examine Mobile Money and Internet Banking transactions in Uganda and particularly, issues that require regulation, security and legal and ethical standards requirements for these payment transactions to protect the different institutions and their customers,” Mr Abong told journalists in Kampala.

The regulations will explore solutions and proposals aimed at addressing consumer protection, curbing fraud, system risks, privacy and allocation of liability.
According to Mr Abong, the process would help in identifying gaps in regulatory and supervisory framework for the regulators, international best practices on operational and internal controls on security standards.

He said the process seeks to harmonise the existing legislation which are relevant to mobile and internet banking transactions through a study to enable a deeper understanding of issues affecting electronic money transactions and the need for legislation.
However, the law in offing comes to replace self-regulatory frameworks which were put in place in absence of a specific law.

editorial@ug.nationmedia.com