The Regulation of Mobile Money in Emerging Markets

Discussing suitable regulatory frameworks for mobile money
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This paper examines the development of mobile money in emerging markets. It notes that the regulation of mobile money is currently the focus of considerable discussion and debate among development partners, policy think-tanks, industry researchers, and academics. The paper suggests areas where further action from financial regulators is required in order to develop the sector and facilitate financial inclusion. It encourages the use of simplified Know Your Customer (KYC) procedures for implementing Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) measures for payment methods. It also highlights the need to understand and build consumer demand for mobile money so as to encourage development of sustainable mobile money ecosystems, thereby improving financial inclusion. It covers the following sections in detail:

  • Background of KYC and AML/CFT norms;
  • AML/CFT measures and the remittance of from Australia to the Pacific;
  • Regulators to promote safe and affordable remittance channels;
  • Importance of consumer demand for mobile money;
  • Changing nature of financial regulators in response to financial inclusion focus;
  • Understanding consumer demand;
  • Regulator’s role in building consumer demand;
  • Importance of partnerships for building consumer demand;
  • Risks arising from partnerships in mobile money and regulatory responses.