Protecting Mobile Money against Financial Crimes

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Protecting Mobile Money against Financial Crimes

Figure 1.4 in Zambia

Example of a Customer Crediting Account through a Retail Outlet

account provision

transaction processing

customer

customer interface

1. Customer gets access to a mobile phone.

2. Customer receives confirmation of deposit.

retail outlet

mobile service

1. Retailer gets access to a mobile phone.

2. Retailer enters 3. Processor transfer verifies that commands retail outlet’s through interface. account balance is sufficient and directs debit.

3. Processor sends confirmation message to customer.

settlement

4. Customer account is updated with credit. 4. Retail outlet’s account is updated with debit.

5. For the retail outlet to put the cash back into its MTZL account, it must use its bank account to send deposit to the MTZL pooled account (see figure 1.5).

Source: Authors.

Figure 1.5

mobile service

1. Retail outlet gets access to a mobile phone.

Example of a Retail Outlet Crediting Its Own Account in Zambia

customer interface

transaction processing

2. Retail outlet 3. Processor receives sends notificaconfirmation of tion to retail credit to account outlet. from the system.

account provision

4. Retail outlet’s account is updated with credit.

settlement

5. Retail outlet transfers money from its bank account to the MTZL pooled account. System then credits outlet’s MTZL account.

Source: Authors.

It is not necessary, however, for the retail outlet to recredit its account because it already has the cash in hand. Alternatively, there are systems in which all retail outlets and customers have formal bank accounts. Such systems are open m-money systems. M-money is simply an extension of this account and can be used in the same way a debit card is used. For instance, the Kenyan MNO and


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