Oversight Issues in Mobile Payments

Author/Editor:

Tanai Khiaonarong

Publication Date:

July 15, 2014

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

This paper examines oversight issues that underlie the potential growth and risks in mobile payments. International experience suggests that financial authorities can develop effective oversight frameworks for new payment methods to safeguard public confidence and financial stability by establishing: (i) a clear legal regime; (ii) proportionate AML/CFT measures to prevent financial integrity risks; (iii) fund safeguarding measures such as insurance, similar guarantee schemes, or “pass through” deposit insurance; (iv) contingency plans for operational disruptions; and (v) risk controls and access criteria in payment systems. Such measures are particularly important for low-income countries where diffusion is becoming more widespread.

Series:

Working Paper No. 2014/123

Subject:

Anti-money laundering and combating the financing of terrorism (AML/CFT) Banking Crime Deposit insurance Digital currencies Financial crises Financial markets Mobile banking Payment systems Technology

English

Publication Date:

July 15, 2014

ISBN/ISSN:

9781498392051/1018-5941

Stock No:

WPIEA2014123

Pages:

35

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