Mobile Money Providers Are Now Regarded As Financial Institutions Subject To Apex Bank Oversight – Mthuli Ncube

The Finance Minister Mthuli Ncube has set new regulations for mobile money providers which include not being allowed to review transaction charges without the approval of the government among other regulations, The Chronicle reports.

Announcing the new regulations, Professor Ncube said:

Money transmission providers and mobile banking providers wishing to provide the service of money transmission services and mobile banking must where they are mobile network operators be licensed in terms of the Postal and Telecommunication Act [Chapter 12:05]; obtain recognition of their payment system in terms of section 3(1) of the National Payment Systems Act [Chapter 24:23] together with the application and annual fees specified in the First Schedule, and must comply with the conditions attached to that recognition and with these regulations.

On the date of commencement of these regulations, money transmission providers and mobile banking providers recognised in terms of the National Payment Systems Act [Chapter 24:23] are deemed to be licensed under these regulations

Every money transmission provider and mobile banking provider shall open and maintain a bank account that is designated exclusively for mobile banking services. Every money transmission provider and mobile banking provider shall ensure that no money is transmitted or is retained on the payment system without a corresponding correct bank balance

The periodic returns shall be kept for a period of seven years from the day of generation of such returns. Every money transmission provider and mobile banking provider must provide an audit report on the product after six months of operation and annually thereafter. Every money transmission provider and mobile banking provider should allow the Reserve Bank read-only real time access to its payment system.

Every money transmission provider and mobile money banking providers must not accept a transaction request from a customer if the customer has not yet registered (where registration is required) or has not been authorised or cleared to use the service or where authorisation has been withdrawn or suspended, the transaction amount requested by the customer is outside the minimum and maximum amounts for transaction, which shall be specified from time to time by both parties

These new regulations come when the RBZ froze and closed EcoCash and OneMoney lines they said were fueling the black market exchange change volatility.

More: The Herald 

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