By Bahle Gama
The Memorandum of Understanding between the Eswatini Communications Commission (ESCCOM) and the Financial Services Regulatory Authority (FSRA) will ensure the regulation of non-bank financial services delivered through electronic communication.
The MoU signed by the entities on Monday morning at the Hilton Garden Inn will also facilitate a more efficient and effective delivery of regulation.
ESCCOM Chief Executive Mvilawemphi Dlamini said the two authorities will foster an open dialogue on operational and technology risk supervision, anti-money laundering, combating the financing of terrorism and proliferation, and cybersecurity.
Further, the agreement between the two authorities establishes a framework for capacity building in areas of common interest.
“As regulators, we must share our experiences and expertise to further advance the development of the economy and safeguard the health of non-bank financial systems,” he said.
The CE stated that the exponential growth of digitalisation and internet connectivity is the backbone of the fourth industrial revolution, which is permeating numerous sectors of the global economy and impacts sectors such as non-banking financial services.
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“The digital economy has enabled new internet-based business models with lower cost of operation that have significantly widened the reach among consumers,” Dlamini said.
According to the CE, a growing number of financial and non-bank financial institutions are becoming aware of the competitiveness of technology-based services.
A reflection of this is the radical emergence of online payment platforms, increased mobile money services usage, and the decline of cash use observed in recent years.
Dlamini said the digital economy is a driving force of economic and financial development, with the main role of supporting SMEs and innovative companies.
Also, as data becomes an even more important source of market power in digital non-bank financial services, a trade-off between efficiency, competition, and privacy, and consumer protection arises.
“It is for this reason that the two authorities have found it prudent to conclude this MOU. I pray and do hope that it will foster a closer bond between ESCCOM and FSRA, as we endeavour on our journey towards the future,” Dlamini said.
FSRA CEO Ncamiso Ntshalintshali reiterated what was said by Dlamini and stated that the MoU represents a pivotal moment in the entity’s efforts to facilitate mutual assistance, information sharing, and enhance cooperation in regulating and supervising financial services through electronic platforms.
Ntshalintshali stated that in an increasingly digital world, where financial services are evolving at a rapid pace, regulatory bodies must adapt and collaborate to ensure effective risk management, equitable affordable access to financial services, and the protection of the interests of stakeholders.
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“By joining forces, we aim to uphold the integrity of our financial markets, safeguard the financial viability of efficient suppliers, and promote the availability of regulated services to all consumers, regardless of their background or circumstances,” Ntshalintshali said.
The CEO elaborated further that the collaboration with ESCCOM will play a crucial role in enhancing public knowledge, awareness, and understanding of regulated sectors, thereby empowering consumers to make informed decisions and contributing to the overall stability of the country’s financial system.
Ntshalintshali also reaffirmed FSRA’s commitment to compliance with legislative and regulatory requirements, “uphold the highest standards of integrity and professionalism as well as work hand-in-hand to build a financial ecosystem that is inclusive, transparent, and sustainable.”
