Oversight Issues in Mobile Payments

The IMF has published a Working Paper that 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:

1. a clear legal regime,
2. proportionate AML/CFT measures to prevent financial integrity risks,
3. fund safeguarding measures such as insurance, similar guarantee schemes, or “pass through” deposit insurance,
4. contingency plans for operational disruptions, and
5. risk controls and access criteria in payment systems.

These measures are seen as being particularly important for low-income countries where dissemination is becoming more widespread.

The Working paper describes research in progress by the authors and has been published to elicit comments and to further debate.

You can download the Working paper at: https://www.imf.org/external/pubs/ft/wp/2014/wp14123.pdf