The Importance of ISO Certification for AgriBusiness in Kenya
ISO certifications give agribusinesses a well-known framework to tackle these demands, boosting their competitiveness at home and abroad.
Data Protection Laws for Fintech Businesses in Nigeria
Fintech, which stands for financial technology, is really changing the game in the financial services world, including in Nigeria. Nigeria’s fintech industry is one of Africa’s fastest-growing, with innovations in mobile payments like Paga and Opay, digital banking solutions like Kuda and VBank, blockchain technology powering cryptocurrency exchanges like Binance (before regulatory restrictions), and lending platforms like Carbon and FairMoney. However, the fast changes have also brought along some big regulatory challenges. For instance, the rise of digital lending platforms has raised worries about predatory lending practices, whilst the growing popularity of blockchain-based transactions has led to regulatory arguments about cryptocurrency use. As a result, politicians and regulators are always balancing the benefits of innovation against the need for consumer protection, data security, and financial stability. In this article, we’re going to dive into the data protection laws in Nigeria. We’ll take a closer look at the key laws, the regulatory bodies involved, and what fintech companies need to keep in mind when it comes to compliance. Read more about Data security in the banking industry Key Regulatory Framework in Nigerian Fintech Nigeria’s fintech sector is governed by a number of regulatory agencies, each of which focuses on a distinct area of consumer protection, data, and finance law: Key Laws and Regulations: In Nigeria, fintech companies must follow a number of laws and rules, such as the Fintech Law in Nigeria. Compliance Requirements for Fintechs in Nigeria When doing business in Nigeria, fintech companies must abide by the following important compliance requirements: 1. Licensing Requirements The Central Bank of Nigeria (CBN) is the major regulator of financial services, including the fintech sector. You could need to get one of several licenses, such as a Payment Service Bank (PSB) license for basic products or a Payment Service Provider (PSP) license for a wider variety of services, depending on the particulars of your fintech business. You may also need to obtain additional licenses from other regulatory agencies, such the Nigerian Communications Commission (NCC) or the Securities and Exchange Commission (SEC), depending on the size of your business. 2. Anti-Money Laundering (AML) and Know Your Customer (KYC) Compliance Fintech companies play an important role in avoiding money laundering and terrorism financing by adhering to stringent AML and KYC standards. KYC standards require thorough client identification and verification, whereas Client Due Diligence (CDD) entails continuous monitoring of customer actions for any suspect behaviors. Fintech companies are required to notify the Nigerian Financial Intelligence Unit (NFIU) of any suspected illicit behavior. 3. Safeguarding User Privacy: The Nigeria Data Protection Act (NDPA) The NDPA gives individuals more control over their personal data by creating criteria for how fintech businesses gather, retain, and use customer information. Implementing secure data storage procedures, getting explicit and informed user consent, reducing data gathering, and upholding data subjects’ rights are all necessary for NDPA compliance. This complies with data protection laws in Nigeria. Here is an Overview of the Nigeria Data Protection Act. 4. Tax Compliance For fintech businesses operating in Nigeria, registering with the Federal Inland Revenue Service (FIRS) is an essential first step. You can be liable for a number of taxes, including income tax and value-added tax (VAT), depending on your income and business structure. You Can Learn More About How To Get Data Security Certifications That Can Improve Your Career. Core Legal Aspects of Fintech Regulation in Nigeria As Nigeria’s fintech sector continues to expand, regulatory oversight has become essential to ensure stability, security, and consumer trust. Understanding the core legal aspects of fintech regulation is crucial for startups, investors, and stakeholders looking to navigate the complex compliance landscape. 1. Licensing and Compliance In Nigeria, fintech companies that offer financial services need to get the right licenses from the right regulatory bodies. For example, companies that offer payment services need to get a license from the CBN, and those that offer securities-related services need to get a license from the SEC, payment service providers, and mobile money operators. The licensing process has minimum capital requirements, compliance checks, and ongoing adherence to CBN regulations, such as transaction reporting and anti-money laundering (AML) procedures. 2. Digital Lending Regulations Nigeria’s fintech digital lending market is expanding, but it has sparked worries about consumer rights and predatory behavior. In order to address problems like excessive interest rates, a lack of transparency, and unethical debt collecting techniques, the FCCPC recently established laws. Strict rules regarding interest rate caps, fair debt collection, and loan disclosures must now be adhered to by fintech lenders. They must also register with the FCCPC to ensure greater oversight of Fintech laws in Nigeria. 3. Crowdfunding and Investment Regulations Crowdfunding has gained popularity among start-ups and small businesses because it allows them to raise funds directly from the public. Nonetheless, crowdfunding platforms are required by the SEC to register and follow stringent guidelines. The SEC’s framework specifies standards for operators, including transparency, investor protections, fundraising caps, and licensing. In addition to safeguarding investors and eliminating fraud, this will encourage ethical business funding sources. 4. Data Security and Privacy As digital services have grown in popularity, safeguarding financial and personal information has taken precedence. Data Protection Law in Nigeria must be followed by fintech businesses. NITDA’s Data Protection Laws in Nigeria enforce data privacy regulations, requiring fintech companies to safeguard data storage, get user consent, and set up procedures for notifying users of data breaches. Data security is a crucial legal obligation for fintech companies since non-compliance with the NDPR can result in severe penalties. Emerging Trends and Challenges in Fintech Regulation Here are the following trends and challenges in Fintech regulation: 1. Sandbox Regulation and Innovation Hubs The CBN established a regulatory sandbox for fintech firms in an effort to promote responsible innovation. Before a full-scale launch, fintech start-ups can test new products in this controlled environment while being closely monitored by regulators. This methodology facilitates start-ups’ navigation of Nigerian fintech laws while encouraging innovation and maintaining compliance. 2. Evolving Cryptocurrency Regulation Nigeria’s cryptocurrency laws are still being developed. Citing worries about cryptocurrency’s possible use in money laundering and terrorism
How to Ensure Data Protection Compliance in Kenya
Are you confident that your business is fully compliant with Kenya’s data protection regulations? In today’s digital world, protecting personal data isn’t just a legal requirement—it’s a responsibility that builds trust with your clients and stakeholders. With the enforcement of Kenya’s Data Protection Act, businesses must take proactive steps to ensure compliance or risk facing serious consequences. Take the WPP Scangroup, for example. In October 2024, the company was ordered to pay damages for mishandling personal data, proving that the Office of the Data Protection Commissioner (ODPC) is serious about enforcing compliance. If a well-established company can face penalties, no business is immune. So, how can you make sure your organization is on the right side of the law? In this guide, we’ll break down the essential steps to achieving and maintaining Data Protection Compliance in Kenya—helping you safeguard personal information, avoid legal trouble, and earn the trust of those you serve. Understanding Data Protection Regulations in Kenya Kenya’s commitment to protecting personal information is stated in the Data Protection Act of 2019. This Act is in line with Article 31(c) and (d) of the Kenyan Constitution, which ensures the right to privacy—a basic human right. Companies are required to get consent from individuals before they can collect, use, or share their personal data. This legislative law ensures that personal data is processed legally, fairly, and transparently, reflecting global norms such as the General Data Protection Regulation (GDPR). For more information about our comprehensive GDPR compliance services, please do not hesitate to contact us. Role of the Office of the Data Protection Commissioner (ODPC) The first Commissioner under Kenya’s Data Protection Act was appointed in November 2020. Let’s take a quick look at what the Commissioner is all about—their main responsibilities, duties, and powers. Here’s a list of them: Key Principles of Data Protection Compliance in Kenya To achieve Data Protection Compliance in Kenya, organizations should focus on the following principles: To learn more, you can also read about the Data Protection Principle. Step-by-Step Guide to Achieving Data Protection Compliance in Kenya Achieving compliance involves a series of strategic actions, here are the following steps to take: 1. Governance, Risk, and Compliance (GRC) Framework Building a strong GRC system that works with the data protection laws that are already in place in different countries. You should also check that company policies and practices comply with both international standards and local regulatory obligations. 2. Data Inventory and Mapping Make a detailed inventory of all the personal information your company gathers and handles, following any applicable data localization guidelines. 3. Legal Basis and Consent Management Identify the legal justification for processing personal data in accordance with Kenya’s data protection laws. Develop strong consent management procedures to guarantee compliance with legal processing and consent withdrawal standards. 4. Data Security and Breach Management Implement suitable technical and organizational safeguards to keep personal information safe from unauthorized access, alteration, disclosure, or destruction. As required by local legislation and GDPR standards, develop procedures for notifying and responding to data breaches. 5. Data Subject Rights and Privacy Policies People are aware of their rights under Kenyan legislation regarding their personal data, including the ability to access, correct, and erase it. Develop clear and transparent privacy rules that outline data processing operations and data subjects’ rights. 6. Awareness and Training Employees should get training on corporate policies, local legal needs, and data protection principles. Create a culture of data privacy awareness to reduce risks and assure continuing compliance. Consequences of Non-Compliance Non-compliance with the Data Protection Act can lead to severe penalties, including fines of up to KShs. 5,000,000 or, in the case of an undertaking, up to 1% of its annual turnover of the preceding financial year, whichever is lower. Additionally, individuals may face fines not exceeding KShs. 3,000,000 or imprisonment for up to ten years, or both. Conclusion Ensuring Data Protection Compliance in Kenya is a comprehensive process that requires a thorough understanding of legal requirements and the implementation of effective data management practices. By adhering to the principles outlined in the Data Protection Act and proactively addressing potential risks, organizations can protect personal data effectively, avoid legal repercussions, and build trust with their stakeholders. If you’re facing challenges with data protection compliance, reach out to us at Johan Consults. We’re here to guide you through the necessary procedures. Frequently Asked Questions on Data Protection Compliance in Kenya 1. Who needs to comply with the Data Protection Act in Kenya? Any individual or organization, regardless of location, that processes the personal data of persons residing in Kenya must comply with the Act. 2. What are the key obligations of data controllers and processors? The key obligations are to ensure data is processed lawfully, and collected for the right purposes. 3. Is registration with the Office of the Data Protection Commissioner (ODPC) mandatory? Yes, data controllers and processors are mandatory to register with the ODPC.
GDPR Consent Statement: What It Is and How to Write One
Consent is an important part of human society, particularly the modern one. Whether it’s using a friend’s property or establishing an amorous relationship, “yes” matters a lot. Let’s link this back to data protection. Since it’s implementation, the GDPR places value on consent. This blog post gives answers about consent under the GDPR, what a GDPR consent statement is, and how to write one. What is a GDPR consent statement? In cases where organisations need to obtain consent, it’s vital that the clients or persons are informed. To do that, a GDPR consent statement becomes necessary. A GDPR consent statement is a clear declaration by organisations to get consent from individuals before collecting, processing, and storing their data. This is in accordance with the General Data Processing Regulation (GDPR). What is the GDPR? On may 25, 2018, the European Union decided it was time to toughen up data protection. And so the GDPR came to be. The General Data Protection Regulation (GDPR) is the most comprehensive law for data protection in the world, with many adaptations of it. For example, the NDPA (Nigerian Data Protection Act) The goal of the law is to grant data subjects (owners of data) more control over their data and it’s processing. majorly, the GDPR focusses on personal data and sensitive data. Under the EU regulation, personal data refers to information that identifies an individual,e.g, name, age, job, etc. while sensitive data under the GDPR include vulnerable data such as bank details, National Identification Number, health status, etc. The Basic Principles of the GDPR : Who does the GDPR apply to? The GDPR applies to any organizations that When it comes to punishing the non-compliant, the General Data Protection Regulation earned it’s reputation as the strictest data protection law. For example, the Italian data protection authority, the Garante, issued its largest GDPR fine of over €79 million against ENEL Energia for telemarketing misconduct. So, you don’t want to get on the wrong side of the law. Need help with GDPR compliance? Book a free consultation with our experts at Johan Consults. Consent and the GDPR The GDPR places a lot of importance on data subject consent to data processing. Although consent is one of the lawful basis for processing data, it’s not compulsory. What does that mean? A common myth of the GDPR is that you always need consent to process data. That’s not true. In fact, you can find other reasons if consent proves hard to get. Consent is only appropriate when you are sure you can stop processing when the subject opts out. Because it would be terrible if you went ahead to process data even when the individual said now. Also, consent as a precondition of a service may not be lawful So, if you can process data legally without consent, go ahead. Otherwise, you might face harsh penalties for wrong consent practices. What is valid consent? The GDPR places utmost priority on consent and how it’s gotten. Here’s what the GDPR considers valid consent. Consent given freely; this is very important. With no form of coercion or similar acts. The individual must have genuine choice and control over their data—no hanky-panky. The consent includes the data controller’s identity, processing purpose, and the procedure for processing. Valid explicit consent must be communicated in words, and consent requests must be clear and unbundled from other information. That way, it’s easily identified. So, what’s the importance of a GDPR consent statement? The following are reasons to use a GDPR consent statement Example of a GDPR Consent Statement The example below serves as a perfect depiction of a GDPR-compliant consent statement. Let’s measure it against the key features of a consent form. “By checking this box, I consent to Techdella collecting and processing my personal data for the purpose of receiving newsletters, marketing materials, and service updates. I understand that my data may be shared with third-party partners for analytics and marketing purposes. I also acknowledge that I have the right to withdraw my consent at any time by contacting support@techdella.com, and I can request access to, modify, or delete my data. For more details, see our Privacy Policy.” The key elements of a GDPR consent statement Purpose: A clear explanation of why data is collected and how it’ll be used—’for the purpose of receiving newsletters, marketing materials, and service updates.’ Data sharing: whether data will be shared with third- parties and “may be shared with third-party partners for analytics and marketing purposes.”. User rights: The consent statement must inform individuals about their rights, such as access, rectification, and consent withdrawal. – “The right to withdraw my consent at any time by contacting support@techdella.com, and I can request access to, modify, or delete my data.” Clear action: it must have an an opt-in mechanism like a checkbox for explicit consent. – “By checking this box, I consent.” Contact details: Lastly, a valid consent statement must provide contact details for data protection. – “support@techdella.com” How To Write a GDPR Consent Statement Since you know what a consent statement should contain for valid consent, here’s a step-by-step guide to writing a compliant GDPR consent statement. State clearly the purpose for which you’re collecting data. Be very specific; is it for marketing, analytics, or whatever? Also, if there are more reasons than one, make sure to state them separately. This ensures enough clarity. Ensure users take explicit actions to give their consent. Examples: clicking a button, checking a box. Note: pre-checked boxes aren’t acceptable. Importantly, avoid implied consent, like continuing to use a website as a form of acceptance. If you’ll share the data with a third party for any reason, include who they are and what they do, together with the reason why. Additionally, if data transfers will happen, let them know where to and how the data will be protected. Your consent statement must include how long you will store data and what will be done once it’s not needed anymore. Include the following rights of individuals in it: Make sure to provide instructions on how users
The Importance of Data Security in 2024
Introduction An organization comprises several sectors or departments. And the synchronization of all their activities makes the organization functional. How does the importance of data security come into play?. Data is an important part of every business and organization. It‘s use is versatile and broad. Organizations make use of data to know the pain points of their target audience, scope out the competition and do marketing. This article reveals the basics of data security and highlights its importance. Read on. What is Data Security? Data security is the process an organization takes to keep data safe from compromise, cyber attacks, mishandling, and other woes. All businesses, whether large, medium, or small, are at constant risk of data breaches—emphasis on ‘constant’. While SMEs think they aren’t on the target list, that couldn’t be more false. Small and medium businesses have proven to be easier targets of cyberattacks because they don’t have a comprehensive data security system. As a matter of fact, statistics show that SMEs will make up a large percentage of the total victims of attacks in 2024. Large corporations are not left out either, but they usually have better ways of securing data. Regardless, the financial implications of a successful data breach frustrate the big guns. The importance of data security goes beyond the one stated above. It is a legal requirement under several data protection laws, like the GDPR, NDPR, and the Data Protection Act of 2023. These laws mandate organizations to secure the personal data of employees and clients against unauthorized access, loss, and compromise. Failure to comply with the data security requirements of these laws incurs severe penalties. Differences Between Data Security and Cyber Security While the application of these terms overlaps, they cannot always mean the same thing. Data security is simply concerned with safeguarding data; on the other hand, cyber security protects the entire digital assets and computer system of an organization. For better comprehension, cybersecurity is the fence protecting the building (digital assets and computer systems) and data security is the door protecting a room (databases) in the building. Types of Data Security There are several ways you can safeguard data as an organization. You can use any combination of these methods you find suitable for your business. Below are some of the most common types of data security. Data encryption Data encryption is the logical scrambling of a dataset to prevent unauthorized parties from understanding it. This is perfect because hackers and other vile people cannot read it without a decryption key. Data erasure Data erasure is exactly as the name implies. After processing data for the intended use(s), you’ll need to get rid of them in accordance with the GDPR and NDPA. This method gets the job done without leaving a trace. Data backup Data backup involves storing another copy of the information on a secure external database. Do not mix it up with data storage. When you lose the original copy, you can easily retrieve the secondary copy as a replacement. This ensures data resiliency (continuity of data after loss or compromise). Data masking Although similar to data encryption, this method is a bit different. Rather than scrambling the data, some characters in the data are replaced with entirely different characters. This makes the information unreadable without the password. Authentication This is probably the most important type of data security. Here’s how it works. To access a particular data or database, authorized users must prove that their identity is accurate. This can be done with a login and password system. Biometrics like fingerprints and rectinal scans are further steps to authentication—two-factor authentication. Firewalls A firewall secures data by blocking access from certain IP addresses. importance of Data Security The importance of data security cannot be overemphasized. These are some reasons why you should take data security seriously in your organization. Unnecessary expenditure Businesses are always on the receiving ends of data insecurity. The reason why is that corporations have to spend significant amounts of money to reverse the damages inflicted during data loss, compromise, and theft. Aside from that, the owners of compromised data can seek to file lawsuits against the institution careless enough to lose data. Such actions take a toll on the company’s pocket. Automated attacks The importance of data security shows itself here. Hackers found an easier way to attack in the form of BOT attacks. It’s an automated system with which they can consistently raid your database without breaking a sweat. To combat this, all businesses need to update their data security systems. Reputational damage Absolutely no one would trust a brand known to always lose their data. Most data held by organizations is very personal and sensitive. Examples are names, bank details, health status, social media passwords, etc. The illegal release of such data is dangerous to its owners, as impersonations, targeted attacks, and online scams will be issued against them. Therefore, organizations need to secure data to protect brand image. Data integrity The integrity of data relies on its reliability and accuracy. This means that for data to maintain its integrity, it must be void of compromises or variations as much as possible. You can maintain data integrity through the centralization of data storage and putting it on various servers. This ensures that uncompromised data is available at all times. GDPR Compliance The General Data Protection Regulation is the law that guides organizations towards data protection in the EU. Although an EU law, the GDPR is regarded as the most comprehensive data protection regulation in the world. organizations In compliance with the GDPR, businesses and organizations have to implement foolproof data security systems. Why? The law penalizes defaulting entities with fines, sanctions, and even outright bans. Conclusion In 2024, data security will be a must for all organizations—small, medium, and large. With it, you can prevent financial loss and reputational damage in addition to complying with legal regulations like GDPR. endeavor to mount more data security methods in your organization; you’ll be better for it. Want more info on
The GDPR Compliance Requirements Checklist.
GDPR compliance is not a foreign concept. But, many organizations do not know what GDPR is, nor do they know how to comply. Compliance with the GDPR should not be regarded as just a legal obligation. Considering that 47% of users have changed providers due to data privacy concerns, it’s also a perfect growth strategy for all businesses. This article contains an overview of the GDPR and a 9-step GDPR compliance checklist. GDPR Overview As the digital era approaches its peak, the value of data has become immeasurable. Businesses of all scales and types now depend heavily on the use of data. From marketing and research intents to sizing up the competition, data has deeply ingrained itself into the global setting. As a result, data protection—from accidental loss or compromise and cyberattacks—became paramount. What Is The GDPR? The GDPR stands for General Data Protection Regulation. It’s the European Union’s effort towards personal data protection of its citizens. Enacted in 2018, it grants individuals (data subjects) control over their personal data and holds organizations accountable for data protection. GDPR compliance benefits are numerous. First, you avoid the hefty penalties imposed. Yes, there are penalties for non-compliance with the GDPR. In fact, as of 1 March 2024, a total of 2,086 fines (+510 in comparison to the GDPR Enforcement Tracker Report 2023) have been recorded. Next, it fosters brand trust and attracts more clients from the EU, which is impressive. Basic Requirements of the GDPR The GDPR requires certain actions from organisations or data handlers towards data protection. These requirements are referred to as the principles of the GDPR. alternatively called the principles of data protection, it is necessary to know these principles to achieve maximum GDPR compliance. Companies processing personal data: Must be transparent about the whole process. Must do so for legitimate and clear reasons We must not collect more data than is necessary. Relative to the purpose of data processing Must make sure collected data is accurate and correct all inaccuracies immediately. Must keep data for as long as necessary. Must protect data from unlawful access and processing. Must be able to show their compliance with the GDPR. Aside these basic principles, some other GDPR requirements exist, such as; Data subject rights, risk assessments for data protection, and consent. The GDPR principles are a large part of the GDPR compliance checklist. Who Does the GDPR Apply To? The GDPR applies to every organization that processes personal data belonging to EU citizens and residents. The organization doesn’t have to be in the EU; it can be anywhere in the world. For example, a healthcare centre in Africa is subject to the GDPR when it treats an EU citizen. The same goes for online businesses, as they can’t know for sure the location of their clients. Who Is Responsible for GDPR Compliance? For GDPR compliance, there a “data controller vs. processor” tug of war going on. While both data controllers and processors have obligations to data protection, the controller is held responsible for GDPR compliance. Comprehensive GDPR Compliance Checklist According to Cybersecurity Ventures, the global annual cost of cybercrime is predicted to reach $9.5 trillion in 2024 and $10.5 trillion by 2025. This is enough motivation for you to tighten data protection in your organization. While you might feel invisible as an SME, you aren’t off the radar. In Nigeria, for example, SMEs were majorly hit by cyberattacks in 2022. To reduce the chances of your organisation falling victim, you should consider GDPR compliance. How? Here’s a comprehensive GDPR compliance checklist to help you get started. Step 1: Know Your Data. You can’t fight what you don’t know, can you? Of course not. Likewise, data protection. As an organisation, take a step back and understand what you aim to protect. With this, you can find the best protection measures. What data are you collecting? What category does it fall under? How sensitive is it? Step 2: Practice safe data collection procedures. When it comes to GDPR compliance, the best foundation is built on data collection best practices. Per the GDPR principles, ensure you communicate the precise purpose of the data processing. Consent is another box to tick. Although you have communicated the purpose with the data subjects, sometimes data processing can only happen with their full consent. So, explain how the data will be used and stored. Obtain explicit consent (make use of forms and checkboxes, not pre-ticked) when necessary. Keep records of the consent. It’ll serve as evidence of compliance. Better still, implement a capable privacy consent management system in place. You need to know that the GDPR has its own standard for valid consent. So learn how to write a GDPR consent statement. Step 3: Facilitate data subject rights. The GDPR gives data subjects certain rights, which are: Right to be informed: this is in line with step 2 above. Ensure you communicate the data processing procedure. Right of access: be ready; at any time, data subjects can request a copy of their personal data. Also ask for information to help understand what you’re doing with their data. Right to erasure: data subjects can request that their personal data be erased. Terms and conditions apply here, though. Rectification rights: individuals have a right to have inaccurate data corrected. Right to restrict processing: under the GDPR, individuals can limit how an organization uses their data. Objection to processing: data subjects have the right, under the GDPR, to stop controllers from processing their data. Data portability: Individuals have the right to obtain the personal data they have supplied to a controller in a structured, widely used, and machine-readable format. Also, they can ask the controller to transfer this data directly to another controller. Automated decision-making rights: Individuals have the right not to be subjected to decisions that rely entirely on automated processing (including profiling) and that have legal consequences for them. This part is very important to tick “done” on the GDPR compliance checklist. Step 4: Appoint a DPO Article 37 of the General Data Protection Regulation (GDPR) mandates the appointment
