Chatain, Pierre-LaurentHernández-Coss, RaúlBorowik, KamilZerzan, Andrew2012-05-292012-05-292008978-0-8213-7556-3https://hdl.handle.net/10986/6530This working paper explores strategies to identify and manage potential money laundering (ML) and terrorist financing (TF) risks in mobile financial services (m-FS). Using fieldwork in seven economies as a basis, the paper provides guidance on the best means of assessing perceived versus actual ML and TF risks, and then identifies specific measures to mitigate the actual risks. The paper concludes with recommendations that aim to promote a regulatory balance to foster an enabling environment for business while minimizing ML and TF risks that hinder its sustainability. The paper identifies four risk factors in m-FS and appropriate mitigation responses. The risk factors are anonymity, elusiveness, rapidity, and poor oversight. Anonymity is the risk of not knowing a customer's actual identity, and it can be diminished through enhanced know-your-customer procedures and identification tools. Elusiveness is the ability to disguise mobile transaction totals, origins, and destinations. It can be diminished through transaction limits and enhanced customer profiling, monitoring, and reporting. Rapidity is the speed with which illicit transactions can occur. Its risk is checked by flagging certain types of transactions and managing risks of third-party providers. The fourth type of risk is poor oversight, which can be mitigated by transparent guidelines on mobile services, clearer licensing, regulation of providers, and effective risk supervision within bank and non-bank m-FS providers.en-USCC BY 3.0 IGOACCESS TO CREDITACCESS TO PRODUCTSACCOUNT HOLDERACCOUNT HOLDERSATMATMSAUTHENTICATIONBANK ACCOUNTBANK ACCOUNTSBANK BRANCHBANK BRANCHESBANK NEGARA MALAYSIABANK OF KOREABANKERS ASSOCIATIONBANKING RELATIONSHIPBANKING SERVICESBASIC BANKINGBEST PRACTICESBUSINESS ENVIRONMENTBUSINESS HOURSBUSINESS MODELBUSINESS MODELSBUSINESS OPPORTUNITIESBUSINESS RELATIONSHIPSBUSINESS TO BUSINESSBUSINESSESCALCULATIONSCALL CENTERCAPABILITIESCAPITAL MARKETSCELL PHONECELL PHONESCERTIFICATECHECKSCOMMERCIAL BANKSCOMMUNICATIONS PLATFORMSCOMMUNICATIONS TECHNOLOGYCOMPETITIVE ADVANTAGESCONSULTING FIRMCONSUMERCONSUMER PROTECTIONCONSUMERSCOPYRIGHTCREDIT CARDCREDIT CARD BALANCESCREDIT CARD COMPANIESCREDIT CARD COMPANYCREDIT CARD TRANSACTIONSCREDIT LIMITCREDIT LINESCREDITSCRIMINAL PURPOSESCUSTOMCUSTOMER DEMANDCUSTOMER DEMANDSCUSTOMER PROFILECUSTOMER PROFILINGCUSTOMER RELATIONSHIPSDATA INTEGRITYDEPOSITDEPOSITSDEVELOPMENT BANKE-SIGNATUREECONOMIC DEVELOPMENTELECTRONIC BANKINGELECTRONIC CURRENCIESELECTRONIC CURRENCYELECTRONIC FINANCEELECTRONIC FUNDSELECTRONIC FUNDS TRANSFERELECTRONIC FUNDS TRANSFERSELECTRONIC SIGNATUREENABLING ENVIRONMENTENABLING ENVIRONMENTSEXCHANGE RATESFINANCIAL ABUSEFINANCIAL ACTIONFINANCIAL INFORMATIONFINANCIAL INSTITUTIONFINANCIAL INSTITUTIONSFINANCIAL MARKETFINANCIAL PRODUCTFINANCIAL PRODUCTSFINANCIAL REGULATORSFINANCIAL SECTORFINANCIAL SERVICEFINANCIAL SERVICE PROVIDERSFINANCIAL SERVICESFINANCIAL SYSTEMFINANCIAL SYSTEMSFINANCIAL TRANSACTIONFINANCIAL TRANSACTIONSFOREIGN CURRENCYFOREIGN EXCHANGEFRAUDFUNCTIONALITYGROWTH POTENTIALHOME BANKINGHOME BANKING SERVICESIDIDSILLITERACYIMAGEINCOME LEVELINFORMATION SERVICESINFORMATION TECHNOLOGYINFRASTRUCTURE DEVELOPMENTINNOVATIONINSTITUTIONAL CAPACITYINSURANCEINSURANCE COMPANIESINTERNATIONAL LAWINTERNATIONAL STANDARDSJOINT VENTURELACK OF INFORMATIONLAW ENFORCEMENTLAWSLICENSELICENSESLIMITED ACCESSLOANLOAN DISBURSEMENTLOW COSTLOW COSTSLOW INCOMELOW-INCOMELOW-INCOME PEOPLEMARKET ACCESSMATERIALMOBILE COMMERCEMOBILE COMMUNICATIONSMOBILE DEVICEMOBILE PHONEMOBILE PHONESMOBILE SERVICEMOBILE SERVICESMOBILE TELEPHONEMOBILE TRANSACTIONMOBILE TRANSACTIONSMOBILE USERSMONETARY AUTHORITYMULTIMEDIANATIONAL BANKNETWORKSNEW MARKETSNEW TECHNOLOGIESONLINE BANKINGONLINE SERVICESONLINE TRANSACTIONSPAYMENT METHODSPAYMENT SERVICEPAYMENT SERVICESPAYMENT SYSTEMPAYMENT SYSTEMSPERSONAL INFORMATIONPHYSICAL PRESENCEPOINT OF SALEPRIVATE SECTORPRIVATE SECTOR DEVELOPMENTPRIVATE SECTORSPROBABILITYPRODUCTIVITYPROTOCOLSQUERIESRAPID DEVELOPMENTREAL ESTATEREGISTRYREGULATORY FRAMEWORKREGULATORY FRAMEWORKSREPAYMENTSRESERVE BANKRESPONSIBILITIESRESULTRESULTSRETAIL OUTLETSRETAIL STORESRISK ASSESSMENTSRISK FACTORRISK FACTORSRISK MANAGEMENTSAVINGSSECURITIESSECURITY CODESECURITY FEATURESSERVICE PROVIDERSERVICE PROVIDERSSOCIAL INSURANCESOCIAL SECURITYSTAKEHOLDERSTAKEHOLDERSSTOCK EXCHANGESTOCKSSUBSIDIARYSUM OF MONEYSUPERVISIONSUPPORT STAFFTECHNICAL ASSISTANCETELECOMTELECOMMUNICATIONTELECOMMUNICATIONSTELECOMMUNICATIONS AUTHORITYTELECOMMUNICATIONS COMPANYTELEPHONETELEPHONE BANKINGTELEPHONE SYSTEMSTERRORISMTRACEABILITYTRADITIONAL BANKINGTRADITIONAL FINANCIAL INSTITUTIONTRADITIONAL FINANCIAL INSTITUTIONSTRANSACTIONTRANSACTION SERVICESTRANSACTION SPEEDUNAUTHORIZED ACCESSUNAUTHORIZED USERSUNIQUE IDUSERUSERSUSESVERIFICATIONWIRE TRANSFERWIRELESS ACCESSWIRELESS APPLICATION PROTOCOLWIRELESS SERVICEWITHDRAWALWorld Bank10.1596/978-0-8213-7556-3