Description
Online banking (or Internet banking or E-banking) allows customers of a financial institution to conduct financial transactions on a secure website operated by the institution, which can be a retail or virtual bank, credit union or building society.
Report of the EACO E-Banking Taskforce
Members Ntahondi Jean Christian (BI), Banchale Gufu (KE), Rugondihene Justin (RW), Clemence Kichao (TZ), Christine Mugimba (UG), Vincent Ngundi – Chair (KE)
Tuesday, 29th May 2012
Introduction
• E-banking and E-Transactions taskforce was formed following a recommendation of the 17th EACO Congress held in Kampala, Uganda • Nairobi meeting was the first meeting of the taskforce • Held from 28-29 March 2012 in Nairobi, Kenya • Objective was to address the recommendations of the 17th EACO Congress on E-banking and prepare for the 19th EACO congress
Agenda
• • • • • • • • • • • • Registration of Delegates Welcome and Opening Remarks Introduction of Delegates Adoption of the Agenda Election of the Bureau Review of mandate of the taskforce Develop Terms of Reference for the taskforce Situational Analysis of EAC E-Banking Ecosystem Develop paper seeking technical assistance A.O.B. Review and adoption of the taskforce report by plenary Closing remarks
List of Delegates/Bureau
Name Vincent Ngundi Ntahondi Jean Christian Christine Mugimba Rugondihene Justin Clemence Kichao Banchale Gufu Country Kenya Burundi Uganda Rwanda Tanzania Kenya Chairman 1st Rapporteur 2nd Rappoteur Member Member Member
Taskforce Workplan
ACTIVITY Review Recommendations of 17th EACO Congress, , on Electronic Banking Conduct Situational Analysis of current EAC E-Banking ecosystem Development of a proposal for the development of a harmonized model EAC ebanking framework Prepare Report on progress of the taskforce Review taskforce progress report Present Taskforce Report to the 19th EACO Congress in TIMELINE 28th March 2012 OUTPUTS Terms of Reference for Task force
28th March 2012
28-29th March 2012
29th March 2012 27th May 2012 May/June 2012
Recommendations to the EACO Congress on e-banking services Proposal seeking support in the development of a harmonized model EAC e-banking framework Taskforce Progress Report Final taskforce progress report Recommendations of the 19th EACO Congress
Review of TF Mandate
In line with the 17th EACO Congress Recommendations: • EACO members to speed up the process of developing a legal and regulatory framework for e-banking; Regulatory Authorities to facilitate the integration of the various ebanking services across platforms and across the region; Regulatory authorities to liaise with relevant stakeholders including the respective Central Banks with the view to putting in place regulatory framework for e-banking; and To form a Taskforce led by Kenya that will draw Terms of Reference and prepare a paper seeking funding from EAC, EU, ITU or any other organization that is ready to fund.
•
•
•
ToR and Outcome
Conduct a situational analysis of the current EAC member state ebanking ecosystem in the following areas (Annex 3 in report):
i. National Policy:
i. All countries have an ICT policy and financial sector policy. However some countries do not have specific provisions for E-transaction or E-banking. All countries have both ICT laws and financial services law except Burundi which has a financial sector law only. However some countries do not have specific provisions for Etransaction or E-banking. All countries have regulations for both the ICT and financial services sector except Burundi. However some countries do not have specific provisions for E-transaction or Ebanking. Further all countries have adopted technology neutral licensing framework. All the countries are in the process of putting in place a national policy, legal and regulatory framework for cyber security. All countries have e-banking services including mobile banking, mobile money transfer, credit card payment systems and some form of online banking. In some countries the services are operator independent. It was noted that cross border mobile banking and mobile money transfer services within the EAC region were still at the infancy stage.
ii. Legal Framework:
–
iii. Regulatory Framework:
–
– –
iv. E-banking Services:
– – –
ToR and Outcome
Develop a Paper seeking funding and support for the development of a harmonized model EAC e-banking framework (Annex 4 in report):
– The taskforce developed a proposal for seeking support for the development of a harmonized model EAC E- banking framework. – The harmonized model EAC E-banking framework should address key facets of the advancement of e-banking services within the EAC region. The proposal covers the following in terms of structure; executive summary, acronyms and definition of terms, background, scope and objectives, expected outcomes, project management and project support.
A.O.B. & TF Report
Any Other Business (A.O.B.)
– Members noted that the name of the taskforce referenced both ebanking and e-transactions. – After deliberations, members observed that e-transactions encompassed aspects of both e-banking and cybersecurity. Therefore, given that EACO has a taskforce handling cybersecurity issues, members agreed that there was need for close collaboration between the two taskforces on cross cutting issues.
Prepare taskforce progress report
– The draft report was compiled and adopted accordingly at the end of the meeting on 29th March 2012. – The taskforce progress report was further reviewed and revised accordingly in Bujumbura immediately prior to the 19th EACO Congress.
Observations by the Taskforce
The taskforce made the following observations: • The key role of ICTs in enabling financial inclusion including the use of mobile-banking (m-banking) • The need to review the impact of taxation of electronic services in light of the key roles of ICT in meeting socioeconomic needs of EAC citizens The need to address risks emanating up from the provision of e-banking services including financial (e.g. money laundering), operational, solvency, money laundering, fraud and security, among others
•
Recommendations by the Taskforce..
The taskforce made the following recommendations consideration by the 19th EACO Congress: • Cross border and Cross platform e-banking integration,
The EACO should participate in initiatives and studies related to e-banking such as the EAC/World Bank regional study on cross-border mobile banking.
for
•
Liaison with Key stakeholders: Member states should put in place:i. ii. A Joint e-banking oversight committee comprising of the financial and ICT regulators and any other stakeholder as deemed necessary; Frameworks guiding the regulatory partnership between financial and ICT regulators and covering the different stakeholders in the e-banking ecosystem.
Recommendations by the Taskforce
• Mitigating risks related to e-banking
– The need to address risks emanating from the provision of e-banking services including financial (e.g. money laundering), operational, solvency, fraud and security, among others – That there is need for the e-banking taskforce to liaise with the Cybersecurity taskforce on cross cutting issues
•
Taxation of Electronic Services
The need to review the impact of taxation of electronic services in light of the key roles of ICT in meeting socio-economic needs and financial inclusion of EAC citizens
•
Developing a harmonized model EAC E-Banking framework
The 19th EACO Congress to consider and adopt the proposal on Development of a Harmonized Model EAC E-Banking Framework.
•
Follow up meeting of the taskforce before the 20th EACO
Given that e-banking is an area that is dynamic and evolving, we recommend a meeting of the taskforce before the 20th EACO to conduct a follow up situational analysis and give resultant recommendations to the EACO Congress.
Summary of Proposal for the Development of a Harmonized Model E-Banking Framework for the EAC Member States
Objective
• To develop a harmonized model e-banking framework for the EAC Member States that addresses key facets of the advancement of e-banking services within the EAC region The model should be able to accommodate the dynamic nature of the ICTs in terms of user needs and accessibility as well as socio- economic and cultural aspects
•
Scope
• The proposal should address the following:
Policy, legal, regulatory and licensing framework; Standards including interoperability to facilitate cross border integration Financial inclusion Taxation Tariff Structures Data protection and privacy Know Your Customer (KYC) processes Quality of Service Consumer protection including customer redress systems, complaint resolution – Risk assessment and management– financial, technological, operational etc – Compliance and enforcement of standards – Electronic Security – – – – – – – – –
Project Outcomes, Management & Support
• Expected Outcomes: The expected outcomes of the project are as follows:
– – – – A harmonized model e-banking framework for the EAC Member States; An Implementation road map for the harmonized model e-banking framework; A Monitoring and Evaluation (M&E) framework; Recommendations on other areas related to e-banking.
•
Project Management
– – Recommendation is for the project to be coordinated by the Chair of the EACO or the EACO Secretariat who will supervise and oversee project implementation. This will entail the management of the project resources including financial, human resource and equipment, among others.
•
Project Support
The EACO will be requesting for assistance in the development of a harmonized ebanking model framework for EAC Member States. The request for assistance includes the following: – Technical support for the project; – Financial support for the project; – Support in the implementation of the resultant framework and recommendations.
Asante!
doc_458157563.pdf
Online banking (or Internet banking or E-banking) allows customers of a financial institution to conduct financial transactions on a secure website operated by the institution, which can be a retail or virtual bank, credit union or building society.
Report of the EACO E-Banking Taskforce
Members Ntahondi Jean Christian (BI), Banchale Gufu (KE), Rugondihene Justin (RW), Clemence Kichao (TZ), Christine Mugimba (UG), Vincent Ngundi – Chair (KE)
Tuesday, 29th May 2012
Introduction
• E-banking and E-Transactions taskforce was formed following a recommendation of the 17th EACO Congress held in Kampala, Uganda • Nairobi meeting was the first meeting of the taskforce • Held from 28-29 March 2012 in Nairobi, Kenya • Objective was to address the recommendations of the 17th EACO Congress on E-banking and prepare for the 19th EACO congress
Agenda
• • • • • • • • • • • • Registration of Delegates Welcome and Opening Remarks Introduction of Delegates Adoption of the Agenda Election of the Bureau Review of mandate of the taskforce Develop Terms of Reference for the taskforce Situational Analysis of EAC E-Banking Ecosystem Develop paper seeking technical assistance A.O.B. Review and adoption of the taskforce report by plenary Closing remarks
List of Delegates/Bureau
Name Vincent Ngundi Ntahondi Jean Christian Christine Mugimba Rugondihene Justin Clemence Kichao Banchale Gufu Country Kenya Burundi Uganda Rwanda Tanzania Kenya Chairman 1st Rapporteur 2nd Rappoteur Member Member Member
Taskforce Workplan
ACTIVITY Review Recommendations of 17th EACO Congress, , on Electronic Banking Conduct Situational Analysis of current EAC E-Banking ecosystem Development of a proposal for the development of a harmonized model EAC ebanking framework Prepare Report on progress of the taskforce Review taskforce progress report Present Taskforce Report to the 19th EACO Congress in TIMELINE 28th March 2012 OUTPUTS Terms of Reference for Task force
28th March 2012
28-29th March 2012
29th March 2012 27th May 2012 May/June 2012
Recommendations to the EACO Congress on e-banking services Proposal seeking support in the development of a harmonized model EAC e-banking framework Taskforce Progress Report Final taskforce progress report Recommendations of the 19th EACO Congress
Review of TF Mandate
In line with the 17th EACO Congress Recommendations: • EACO members to speed up the process of developing a legal and regulatory framework for e-banking; Regulatory Authorities to facilitate the integration of the various ebanking services across platforms and across the region; Regulatory authorities to liaise with relevant stakeholders including the respective Central Banks with the view to putting in place regulatory framework for e-banking; and To form a Taskforce led by Kenya that will draw Terms of Reference and prepare a paper seeking funding from EAC, EU, ITU or any other organization that is ready to fund.
•
•
•
ToR and Outcome
Conduct a situational analysis of the current EAC member state ebanking ecosystem in the following areas (Annex 3 in report):
i. National Policy:
i. All countries have an ICT policy and financial sector policy. However some countries do not have specific provisions for E-transaction or E-banking. All countries have both ICT laws and financial services law except Burundi which has a financial sector law only. However some countries do not have specific provisions for Etransaction or E-banking. All countries have regulations for both the ICT and financial services sector except Burundi. However some countries do not have specific provisions for E-transaction or Ebanking. Further all countries have adopted technology neutral licensing framework. All the countries are in the process of putting in place a national policy, legal and regulatory framework for cyber security. All countries have e-banking services including mobile banking, mobile money transfer, credit card payment systems and some form of online banking. In some countries the services are operator independent. It was noted that cross border mobile banking and mobile money transfer services within the EAC region were still at the infancy stage.
ii. Legal Framework:
–
iii. Regulatory Framework:
–
– –
iv. E-banking Services:
– – –
ToR and Outcome
Develop a Paper seeking funding and support for the development of a harmonized model EAC e-banking framework (Annex 4 in report):
– The taskforce developed a proposal for seeking support for the development of a harmonized model EAC E- banking framework. – The harmonized model EAC E-banking framework should address key facets of the advancement of e-banking services within the EAC region. The proposal covers the following in terms of structure; executive summary, acronyms and definition of terms, background, scope and objectives, expected outcomes, project management and project support.
A.O.B. & TF Report
Any Other Business (A.O.B.)
– Members noted that the name of the taskforce referenced both ebanking and e-transactions. – After deliberations, members observed that e-transactions encompassed aspects of both e-banking and cybersecurity. Therefore, given that EACO has a taskforce handling cybersecurity issues, members agreed that there was need for close collaboration between the two taskforces on cross cutting issues.
Prepare taskforce progress report
– The draft report was compiled and adopted accordingly at the end of the meeting on 29th March 2012. – The taskforce progress report was further reviewed and revised accordingly in Bujumbura immediately prior to the 19th EACO Congress.
Observations by the Taskforce
The taskforce made the following observations: • The key role of ICTs in enabling financial inclusion including the use of mobile-banking (m-banking) • The need to review the impact of taxation of electronic services in light of the key roles of ICT in meeting socioeconomic needs of EAC citizens The need to address risks emanating up from the provision of e-banking services including financial (e.g. money laundering), operational, solvency, money laundering, fraud and security, among others
•
Recommendations by the Taskforce..
The taskforce made the following recommendations consideration by the 19th EACO Congress: • Cross border and Cross platform e-banking integration,
The EACO should participate in initiatives and studies related to e-banking such as the EAC/World Bank regional study on cross-border mobile banking.
for
•
Liaison with Key stakeholders: Member states should put in place:i. ii. A Joint e-banking oversight committee comprising of the financial and ICT regulators and any other stakeholder as deemed necessary; Frameworks guiding the regulatory partnership between financial and ICT regulators and covering the different stakeholders in the e-banking ecosystem.
Recommendations by the Taskforce
• Mitigating risks related to e-banking
– The need to address risks emanating from the provision of e-banking services including financial (e.g. money laundering), operational, solvency, fraud and security, among others – That there is need for the e-banking taskforce to liaise with the Cybersecurity taskforce on cross cutting issues
•
Taxation of Electronic Services
The need to review the impact of taxation of electronic services in light of the key roles of ICT in meeting socio-economic needs and financial inclusion of EAC citizens
•
Developing a harmonized model EAC E-Banking framework
The 19th EACO Congress to consider and adopt the proposal on Development of a Harmonized Model EAC E-Banking Framework.
•
Follow up meeting of the taskforce before the 20th EACO
Given that e-banking is an area that is dynamic and evolving, we recommend a meeting of the taskforce before the 20th EACO to conduct a follow up situational analysis and give resultant recommendations to the EACO Congress.
Summary of Proposal for the Development of a Harmonized Model E-Banking Framework for the EAC Member States
Objective
• To develop a harmonized model e-banking framework for the EAC Member States that addresses key facets of the advancement of e-banking services within the EAC region The model should be able to accommodate the dynamic nature of the ICTs in terms of user needs and accessibility as well as socio- economic and cultural aspects
•
Scope
• The proposal should address the following:
Policy, legal, regulatory and licensing framework; Standards including interoperability to facilitate cross border integration Financial inclusion Taxation Tariff Structures Data protection and privacy Know Your Customer (KYC) processes Quality of Service Consumer protection including customer redress systems, complaint resolution – Risk assessment and management– financial, technological, operational etc – Compliance and enforcement of standards – Electronic Security – – – – – – – – –
Project Outcomes, Management & Support
• Expected Outcomes: The expected outcomes of the project are as follows:
– – – – A harmonized model e-banking framework for the EAC Member States; An Implementation road map for the harmonized model e-banking framework; A Monitoring and Evaluation (M&E) framework; Recommendations on other areas related to e-banking.
•
Project Management
– – Recommendation is for the project to be coordinated by the Chair of the EACO or the EACO Secretariat who will supervise and oversee project implementation. This will entail the management of the project resources including financial, human resource and equipment, among others.
•
Project Support
The EACO will be requesting for assistance in the development of a harmonized ebanking model framework for EAC Member States. The request for assistance includes the following: – Technical support for the project; – Financial support for the project; – Support in the implementation of the resultant framework and recommendations.
Asante!
doc_458157563.pdf