Tanzania: New law to improve online banking safety
The Tanzanian government has announced it will soon be implementing a Cyber Crime Act designed to help curb theft through banking institutions.The Tanzanian government has announced it will soon be implementing a Cyber Crime Act designed to help curb theft through banking institutions.
New guidelines have been issued to show financial institutions how to start payment systems online and how to improve the technology, Deputy Finance Minister Saada Mkuya told Parliament on Tuesday (May 7th).
She explained that the objective is to reduce and perhaps eliminate challenges that come with online banking, adding that the Bank of Tanzania has asked banks to use new technology Uero Master Card Visa, which uses a chip-based system.
"The government wants banks to stop using the old system of using magnetic stripes which are outdated and can easily be manipulated to steal money from banks," she added, quoted by Tanzania Daily News.
E-banking in Tanzania
considerably in the past few years, although the majority of transactions are still cash-based. Citibank, Bank M and Standard Chartered are among the pioneers of e-banking, and almost all leading commercial banks in the country now have internet banking services.
But some efforts are still needed to improve access to e-banking - according to World Bank programme InfoDev - as challenges remain in terms of technology, pricing, financial literacy, functionality, partnerships, delivery channels, POS distribution and regulation.