Banking data protection: Mozambique’s central bank calls for compliance with the law – Notícias

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Banking data protection: Mozambique’s central bank calls for compliance with the law – Notícias

1:40 CAT | 18 Oct 2024

FILE - For illustration purposes only. [File photo: Lusa]

Mozambique does not have specific legislation to regulate the use of cloud information storage services by national financial system institutions.

This observation was made by the central bank itself, in its response to a request for clarification from the Confederation of Economic Associations (CTA) on data sovereignty and the use of this new form of storage.

The financial system regulator meanwhile clarifies that credit institutions and financial companies must continue to adhere to the rules set out in the Law on Credit Institutions and Financial Companies (LICSF), as well as the Law on Electronic Transactions, in order to protect the data under their responsibility.

It also points to the Regulation on Data Processing Centres for Credit Institutions and Financial Companies, which establishes that Credit Institutions and Financial Companies (ICSF) must have their data processing centres based in national territory.

“Article 5, paragraph 1 of the same notice states that the [Credit Institutions and Financial Companies) ICSF’s replication centres must be equipped with similar means to those of the primary data processing centres, and that they may be installed either in national territory or abroad, provided that there are no legal conflicts and that the difference in time zones does not jeopardise the functioning of the ICSF,” the Bank of Mozambique highlights.

It further asserts that it is paying close attention to the digitalisation of the financial sector, in order to guarantee reliability, while also taking into account the limitations arising from insufficient infrastructure and the costs that compliance may entail.

“In this regard, and as regulator and supervisor of the financial system, the Bank of Mozambique has taken steps to monitor the digital transformation seen in the sector, albeit with due caution, in order to ensure the confidentiality, integrity, availability and accessibility of the financial data and services transacted,” the central bank note reads.

Source: Notícias