Integrity in Mobile Phone Financial Services: Measures for Mitigating the Risks from Money Laundering and Terrorist Financing

by Chatain, Pierre-laurent; Hernandez-Coss, Raul; Borowik, Kamil; Zerzan, Andrew

• ISBN13: 9780821375563
• ISBN10: 0821375563
• Format: Paperback
• Copyright: 2008-06-20
• Publisher: World Bank

Summary

Integrity in Mobile Phone Financial Services is part of the World Bank Working Paper series. These papers are published to communicate the results of the Bank's ongoing research and to stimulate public discussion.

Table of Contents

Foreword	p. vii
Acknowledgments	p. ix
Abbreviations and Acronyms	p. xi
Executive Summary	p. xiii
Introduction	p. 1
Background	p. 1
Objective	p. 2
Scope and Target Audience	p. 3
Geographical Coverage	p. 3
Outline	p. 6
m-FS Growth Potential and Concerns	p. 7
m-FS Offers Unique Economic Development Potential	p. 7
m-FS Development Demands a Convergence of Stakeholder Incentives	p. 9
Perceived ML and TF Risks and the Case for Regulation	p. 11
Market Access and the Case for Regulatory Balance	p. 14
Analyzing and Responding to ML and TF Risks: Observations of Applied Practices	p. 17
New Challenges to Old Risk Analysis Methods	p. 17
New Framework for Risk Analysis	p. 18
ML and TF Risks Inherent in the Four m-FS Service Categories	p. 20
ML and TF Risks External to m-FS Service Categories	p. 29
Applying FATF Recommendations to m-FS	p. 33
Observed Mitigation Responses and their Consistency with FATF Recommendations	p. 33
Application of AML and CFT Standards to All m-FS Providers	p. 41
Conclusions and Policy Recommendations	p. 47
Conclusions	p. 47
Policy Recommendations and Issues for Consideration	p. 48
m-FS Growth	p. 55
Types of m-FS and m-FS Services Observed in Fieldwork	p. 57
Mitigation Measures for m-BSA	p. 61
Mitigation Measures for m-Money	p. 67
The Financial Action Task Force (FATF)	p. 69
Overview of m-FS Risk Identification and Mitigation	p. 71
Glossary	p. 73
Bibliography	p. 75
Author Biographies	p. 79
List of Tables
The Four Identified Risk Factors	p. 13
Possible ML and TF Risks and Observed Control Measures for m-BSA	p. 25
Concurrent Use of m-FS	p. 30
Observed m-FS Licensing and AML and CFT Compliance Requirements	p. 32
Most Relevant FATF Recommendations for Risk-Based Consideration	p. 41
Factors Contributing to Growth of m-FS	p. 56
m-fINFO in Visited Jurisdictions	p. 57
m-BSA in Visited Jurisdictions	p. 58
m-Payments in Visited Jurisdictions	p. 58
m-Money in Visited Jurisdictions	p. 59
Observed Limits on m-FS Transactions, USD (2007)	p. 64
List of Figures
Convergence of Stakeholders' Incentives Results in m-FS Growth	p. 10
Mobile Financial Information Services (m-fINFO)	p. 20
Mobile Bank and Securities Accounts (m-BSA)	p. 21
Mobile Payment Services (m-Payments)	p. 26
Mobile Money Services (m-Money)	p. 27
Concurrent Use of m-FS	p. 30
Soaring Market for Mobile Connections and SMS	p. 55
List of Boxes
m-FS Increases Access to Financial Services	p. 8
Suspicious Activities Using Mobile Phones: The Case of Korea	p. 14
Framework for Risk Analysis	p. 19
Risk-based Determination of Transaction Limits: The Case of Korea	p. 24
Collaboration through Regulatory Dialogues	p. 31
IT Supervisory Core Group at a Central Bank	p. 32
Guidelines Designed by Financial Institutions	p. 39
Non-face-to-face Risk Mitigation Responses: The Case of South Africa	p. 62
Customer Profiling Systems for AML and CFT	p. 63
Korean Rules for Detecting m-BSA Suspicious Transactions	p. 65
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