Legal & Risk: What Businesses Need to Watch

2026-06-10

This week’s developments highlight two critical legal and compliance challenges: the risks of cross-border data transfers in fintech partnerships and the potential regulatory shifts in South African banking. These stories, though originating in different contexts, offer actionable insights for businesses navigating evolving legal landscapes.

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1. Cross-Border Data Transfers in MTN’s Alipay Partnership

As BusinessTech reports in "MTN partners with Alipay to transform MoMo into a super app", South African telecom giant MTN is collaborating with Ant Group (owner of Alipay) to enhance its digital wallet, MoMo. While the partnership promises innovation, businesses often overlook the data privacy risks associated with sharing consumer data across jurisdictions.

Under South Africa’s Protection of Personal Information Act (POPIA), transferring personal data to a country without adequate data protection safeguards (like China) could violate POPIA’s principle of international data transfers (Section 10). If MoMo processes biometric or financial data, failing to ensure "adequate protection" could expose MTN to litigation, fines, or reputational harm. Additionally, compliance with competition law is critical: the partnership could be scrutinized under the Competition Act if it reduces competition in the fintech sector. Businesses should also assess whether Alipay’s involvement aligns with the Financial Sector Conduct Act (FSCA), ensuring the super-app meets local financial service standards.

Compliance actions:

Conduct a data transfer impact assessment under POPIA before sharing data with foreign entities.
Engage legal counsel to review competition law implications of strategic partnerships.
Ensure compliance with FSCA requirements for digital financial services.

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2. Regulatory Shifts in South African Banking

TechCentral’s article "World’s largest chipmaker does not rule out price rises as costs increase" may seem unrelated, but the broader context of South African banking’s structural advantage raises questions about regulatory compliance as the sector evolves. As traditional banks leverage tech to dominate digital services, data privacy and anti-money laundering (AML) obligations under POPIA and FSCA become more stringent.

A less obvious risk is non-compliance with evolving AML regulations: if banks fail to update their systems to detect illicit financial activity