Mobile Money: Methodology for Assessing Money Laundering and Terrorist Financing Risks

Categories : AML-CFT, Regulation of Digital Financial Services


Author: GSMA

Mobile money services are currently being deployed in many markets across the world. There is strong evidence that these services can improve access to formal financial services in developing countries. However, their rise has prompted concerns that mobile money services will be used for money laundering and terrorist financing (ML/TF). Whilst to date there has been no evidence of ML/TF, mobile money systems could be used for these purposes in the future (as other formal financial services are targeted today).

The aim of this discussion paper from the GSMA is to propose a risk assessment methodology based on the principles of the existing framework of the Financial Action Task Force (FATF) recommendations. It is intended to provide regulators and industry alike with a flexible and consistent means of assessing and mitigating the risk of ML/TF for mobile money services.