5 Key Points to Note About the CBN Mobile Money Operators (MMOs) Regulation
The CBN, which is the chief regulator of financial services in Nigeria, recently issued a Regulatory Framework for Mobile Money Operations in Nigeria. Mobile money is a technology that allows people to receive, store, and spend money using a mobile phone. It is a recognized means of banking the unbanked and ensuring financial inclusion. The regulatory framework addresses business rules governing the operation of mobile money services and specifies basic functionalities expected of any mobile money service and solution in Nigeria. The below are 5 key points to note about this new regulation:
- The MMO Regulation divides MMOs in Nigeria into two categories:
- The bank-led model which allows the banks to partner with other approved organizations to deliver banking services
- the non-bank-led model which allows licensed corporate organizations to provide mobile money operations
- Both MMO models have to obtain a license from the CBN as well as unique short codes.
- The MMO Regulation provides that MMOs should provide a detailed payments management process that covers the entire solution delivery, consumer protection/dispute resolution procedures and risk management process to transaction settlement.
- MMOs are also required to comply with existing Know your Customer (KYC), Anti-money Laundering (AML) and Customer Due Diligence laws and regulations.
- The MMO Regulation also prohibits MMOs from granting loans, advances and/or guarantees. They are also prohibited from accepting foreign currency deposits or dealing in the foreign exchange market.
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