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

• Main Authors: Chatain, Pierre-Laurent, Hernandez-Cross, Raul, Borowik, Kamil, Zerzan, Andrew
• Format: eBook Book
• Language: English
• Published: Herndon World Bank Publications 2008; The World Bank; Washington, DC : World Bank
• Edition: 1
• Series: World Bank Working Papers
• Subjects: ACCESS TO CREDIT; ACCESS TO PRODUCTS; ACCOUNT HOLDER; ACCOUNT HOLDERS; ATM; ATMS; AUTHENTICATION; BANK ACCOUNT; BANK ACCOUNTS; BANK BRANCH; BANK BRANCHES; BANK NEGARA MALAYSIA; BANK OF KOREA; BANKERS ASSOCIATION; Banking; BANKING RELATIONSHIP; BANKING SERVICES; BASIC BANKING; BEST PRACTICES; BUSINESS ENVIRONMENT; BUSINESS HOURS; BUSINESS MODEL; BUSINESS MODELS; BUSINESS OPPORTUNITIES; BUSINESS RELATIONSHIPS; BUSINESS TO BUSINESS; BUSINESSES; CALCULATIONS; CALL CENTER; CAPABILITIES; CAPITAL MARKETS; CELL PHONE; Cell phone systems; CELL PHONES; CERTIFICATE; CHECKS; COMMERCIAL BANKS; Commercial crimes; COMMUNICATIONS PLATFORMS; COMMUNICATIONS TECHNOLOGY; COMPETITIVE ADVANTAGES; CONSULTING FIRM; CONSUMER; CONSUMER PROTECTION; CONSUMERS; COPYRIGHT; CREDIT CARD; CREDIT CARD BALANCES; CREDIT CARD COMPANIES; CREDIT CARD COMPANY; CREDIT CARD TRANSACTIONS; CREDIT LIMIT; CREDIT LINES; CREDITS; CRIMINAL PURPOSES; CUSTOM; CUSTOMER DEMAND; CUSTOMER DEMANDS; CUSTOMER PROFILE; CUSTOMER PROFILING; CUSTOMER RELATIONSHIPS; DATA INTEGRITY; DEPOSIT; DEPOSITS; DEVELOPMENT BANK; E-SIGNATURE; ECONOMIC DEVELOPMENT; ELECTRONIC BANKING; Electronic commerce; ELECTRONIC CURRENCIES; ELECTRONIC CURRENCY; ELECTRONIC FINANCE; ELECTRONIC FUNDS; ELECTRONIC FUNDS TRANSFER; ELECTRONIC FUNDS TRANSFERS; ELECTRONIC SIGNATURE; ENABLING ENVIRONMENT; ENABLING ENVIRONMENTS; EXCHANGE RATES; FINANCIAL ABUSE; FINANCIAL ACTION; FINANCIAL INFORMATION; FINANCIAL INSTITUTION; FINANCIAL INSTITUTIONS; FINANCIAL MARKET; FINANCIAL PRODUCT; FINANCIAL PRODUCTS; FINANCIAL REGULATORS; FINANCIAL SECTOR; FINANCIAL SERVICE; FINANCIAL SERVICE PROVIDERS; FINANCIAL SERVICES; FINANCIAL SYSTEM; FINANCIAL SYSTEMS; FINANCIAL TRANSACTION; FINANCIAL TRANSACTIONS; FOREIGN CURRENCY; FOREIGN EXCHANGE; FRAUD; FUNCTIONALITY; GROWTH POTENTIAL; HOME BANKING; HOME BANKING SERVICES; IDS; ILLITERACY; INCOME LEVEL; Information and communication technologies; INFORMATION SERVICES; INFORMATION TECHNOLOGY; INFRASTRUCTURE DEVELOPMENT; INNOVATION; INSTITUTIONAL CAPACITY; INSURANCE; INSURANCE COMPANIES; INTERNATIONAL LAW; INTERNATIONAL STANDARDS; Internet; JOINT VENTURE; LACK OF INFORMATION; LAW ENFORCEMENT; LAWS; LICENSE; LICENSES; LIMITED ACCESS; LOAN; LOAN DISBURSEMENT; LOW COST; LOW COSTS; LOW INCOME; LOW-INCOME PEOPLE; MARKET ACCESS; MATERIAL; MOBILE COMMERCE; MOBILE COMMUNICATIONS; MOBILE DEVICE; MOBILE PHONE; MOBILE PHONES; MOBILE SERVICE; MOBILE SERVICES; MOBILE TELEPHONE; MOBILE TRANSACTION; MOBILE TRANSACTIONS; MOBILE USERS; MONETARY AUTHORITY; MULTIMEDIA; NATIONAL BANK; NETWORKS; NEW MARKETS; NEW TECHNOLOGIES; ONLINE BANKING; ONLINE SERVICES; ONLINE TRANSACTIONS; PAYMENT METHODS; PAYMENT SERVICE; PAYMENT SERVICES; PAYMENT SYSTEM; PAYMENT SYSTEMS; PERSONAL INFORMATION; PHYSICAL PRESENCE; POINT OF SALE; Prevention; PRIVATE SECTOR; PRIVATE SECTOR DEVELOPMENT; PRIVATE SECTORS; PROBABILITY; PRODUCTIVITY; PROTOCOLS; QUERIES; RAPID DEVELOPMENT; REAL ESTATE; REGISTRY; REGULATORY FRAMEWORK; REGULATORY FRAMEWORKS; REPAYMENTS; RESERVE BANK; RESPONSIBILITIES; RESULT; RESULTS; RETAIL OUTLETS; RETAIL STORES; RISK ASSESSMENTS; RISK FACTOR; RISK FACTORS; RISK MANAGEMENT; SAVINGS; SECURITIES; SECURITY CODE; SECURITY FEATURES; Security measures; SERVICE PROVIDER; SERVICE PROVIDERS; SOCIAL INSURANCE; SOCIAL SECURITY; STAKEHOLDER; STAKEHOLDERS; STOCK EXCHANGE; STOCKS; SUBSIDIARY; SUM OF MONEY; SUPERVISION; SUPPORT STAFF; TECHNICAL ASSISTANCE; TELECOM; TELECOMMUNICATION; TELECOMMUNICATIONS; TELECOMMUNICATIONS AUTHORITY; TELECOMMUNICATIONS COMPANY; TELEPHONE; TELEPHONE BANKING; TELEPHONE SYSTEMS; TERRORISM; TRACEABILITY; TRADITIONAL BANKING; TRADITIONAL FINANCIAL INSTITUTION; TRADITIONAL FINANCIAL INSTITUTIONS; TRANSACTION; TRANSACTION SERVICES; TRANSACTION SPEED; UNAUTHORIZED ACCESS; UNAUTHORIZED USERS; UNIQUE ID; USER; USERS; USES; VERIFICATION; WIRE TRANSFER; WIRELESS ACCESS; WIRELESS APPLICATION PROTOCOL; WIRELESS SERVICE; WITHDRAWAL; ELECTRONIC FUNDS; MOBILE PHONE; RESULTS; QUERIES; IMAGE; DATA INTEGRITY; LICENSES; COPYRIGHT; FINANCIAL SERVICES; MATERIAL
• ISBN: 0821375563; 9780821375563
• DOI: 10.1596/978-0-8213-7556-3

Governments are challenged to make an innovation-friendly climate while simultaneously ensuring that business development remain sustainable. Criminal use of the technology—terrorist financing and money laundering—challenges long-run business viability via risk of massive investment flight and public distrust of new players entering the market. Sustainable business models are those that base regulation on a careful risk-based analysis. This study identifies the perceived risks and compares them with the actual level of risk for each category of mobile phone financial services. The comparison reveals that the perceptions do not weigh up to the reality. Based on fieldwork in seven locations where the technology has taken off, this paper finds that providers apply measures that are consistent with international standards to combat money laundering and terrorist financing. It identifies the sometimes non-traditional means the industry uses that both mitigate the risks and are in line with good business practices. Acknowledging that mobile phone financial services are no riskier than other channels, governments are called to treat them as an opportunity to expand access to finance.