Two banking laws to be changed

By: STAFF REPORTER

GOVERNMENT is set to tighten loose ends in the financial sector by strengthening the oversight function of the Bank of Namibia and clamping down on pyramid schemes and credit card fraud.

Cabinet gave its principle approval for amendments to the Banking Institutions Act and the Payment System Management Act, which are to be tabled in Parliament soon.
“Changes to the Payment System Management Act (of 2003) seek to empower the Bank of Namibia to assess and – where necessary – regulate payments system fees and charges throughout the national payments system,” a press release on Friday from the Ministry of Information stated. “This will allow the BoN to evaluate the costing and pricing practices of banking institutions in order to determine and initiate more cost-effective pricing structures.”
Another amendment to the same bill will make the possession of illegal card skimming devices a criminal offence. “Credit card fraud through the use of such devices could undermine the integrity of the national payment system,” the Information Ministry said.
Envisaged amendments to the existing Banking Institutions Act will empower the BoN to assess and mitigate potential risks that banks could be exposed to “as a consequence of other entities with the same groups of companies.”
Other amendments will criminalise and prohibit pyramid and similar schemes in Namibia and will strengthen the oversight function of the BoN.
Another law Cabinet approved for amendment is the 1977 Criminal Procedure Act that protects witnesses and informers. Government already has in place the Anti-Corruption Act of 2003, the prevention of Organised Crime Act of 2004 and the Financial Intelligence Act of 2007, which provide for the protection of informers and information. These laws also compel persons to disclose information.
However, the current laws “do not provide adequate protection for witnesses, hence running the risk of interference and compromising the fate of witnesses and informants in Namibia.” The envisaged amendment approved by Cabinet recently will increase the admission of guilt fines (to N$6 000) to allow the finalisation of more cases. Higher fines will also be imposed on a guilty plea in respect of minor cases without a full questioning of an accused.