Integrity in Mobile Phone Financial Services

This working paper explores strategies \n to identify and manage potential money laundering (ML) and \n terrorist financing (TF) risks in mobile financial services \n (m-FS). Using fieldwork in seven economies as a basis, the \n paper provides guidance on the best means of assessing \n perceived versus actual ML and TF risks, and then identifies \n specific measures to mitigate the actual risks. The paper \n concludes with recommendations that aim to promote a \n regulatory balance to foster an enabling environment for \n business while minimizing ML and TF risks that hinder its \n sustainability. The paper identifies four risk factors in \n m-FS and appropriate mitigation responses. The risk factors \n are anonymity, elusiveness, rapidity, and poor oversight. \n Anonymity is the risk of not knowing a customer's \n actual identity, and it can be diminished through enhanced \n know-your-customer procedures and identification tools. \n Elusiveness is the ability to disguise mobile transaction \n totals, origins, and destinations. It can be diminished \n through transaction limits and enhanced customer profiling, \n monitoring, and reporting. Rapidity is the speed with which \n illicit transactions can occur. Its risk is checked by \n flagging certain types of transactions and managing risks of \n third-party providers. The fourth type of risk is poor \n oversight, which can be mitigated by transparent guidelines \n on mobile services, clearer licensing, regulation of \n providers, and effective risk supervision within bank and \n non-bank m-FS providers

Anonymity · Business · Computer security · Database transaction · Financial services · Money Laundering · Terrorism · Blockchain Technology Applications and Security · Computer Science · Crime, Illicit Activities, and Governance · Cybercrime and Law Enforcement Studies · Cell phone systems · Cellular telephone systems · Commercial crimes · Electronic funds transfers · Home banking services · Prevention · Security measures · Finance

• The U.S.-Mexico Remittance Corridor

  Raúl Hernández-Coss•The U.S.-Mexico remittance corridor•2005

  Add to list