The 2012 Revised FATF Recommendations: Assessing and Mitigating Mobile Money Integrity Risks within the New Standards Framework

32 Pages Posted: 5 Aug 2015

Date Written: October 1, 2013

Abstract

Mobile money holds great financial inclusion promise, but also poses financial integrity challenges. The Financial Action Task Force (FATF) - the intergovernmental global anti-money laundering (AML) and counter-terrorist financing (CTF) standard-setting body - expressed support for financial inclusion and mobile money as a means to decrease the use of non-transparent cash in many developing countries. In February 2012, FATF adopted a new revised set of standards. This Article considers the impact of these new standards on mobile money models in developing countries. It highlights aspects of the new standards that would facilitate innovative mobile money models, but also points to questions and challenges. The new standards are generally more facilitative of new financial services models for the unbanked and underbanked, but a number of key questions and implementation challenges remain. These include mobile money-related privacy and cyber-crime concerns.

Keywords: money laundering; terrorist financing; mobile money; customer due diligence; financial inclusion

JEL Classification: K20

Suggested Citation

de Koker, Louis, The 2012 Revised FATF Recommendations: Assessing and Mitigating Mobile Money Integrity Risks within the New Standards Framework (October 1, 2013). Washington Journal of Law, Technology & Arts, Vol. 8, No. 3, 2013, 165. Available at SSRN: https://ssrn.com/abstract=2639462

Louis De Koker (Contact Author)

La Trobe Law School ( email )

La Trobe University
Bundoora, VIC 3083 3142
Australia

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