Guide / Toolkit

IFAD Remittance Innovation Toolkit

There is currently limited to no guidance available to remittance service providers (RSPs) on how to assess a regulatory regime to identify opportunities for innovation in KYC (know your customer) and CDD (customer due diligence) processes to enhance remittance access. This toolkit builds on the experience of IFAD under the Remittance Access Innovation (RAI) program rolled out in seven African countries. 

The toolkit provides practical guidance for regulators and RSPs on how to: 

  1. Assess national regulatory environments.
  2. Analyze contextual realities, highlighting key risks and opportunities for innovation.
  3. Plan, implement and measure innovative interventions to address KYC and CDD barriers to remittances.

Financial sector regulators and RSPs are the primary audience of this toolkit, each standing to benefit from it: 

  • Financial sector regulators and supervisors can enhance their country’s AML/CFT regimes, mitigate the de-risking of customers and institutions, align more effectively with FATF and other international best practices, drive down remittance costs and strategically leverage remittances to actively contribute to national objectives such as fostering economic growth, building financial inclusion and supporting livelihoods, thereby contributing to the SDGs. 
  • Remittance service providers are equipped to retain their existing customer base, capitalize on unexplored target markets, broaden their revenue streams, reduce time and cost spent on compliance arising from onerous KYC and CDD processes, and harness data to craft novel products and services.

About this Publication

By Liebe Burger, Lezanne Anderson, Christine Hougaard, Masiiwa Rusare & Barry Cooper