The impact of RICA on financial inclusion (2010)

FinMark Trust commissioned this brief, exploratory note to consider the impact of the Regulation of Interception of Communications Act (RICA) on mobile financial services and financial inclusion. In 2009, the South African government amended RICA by introducing identification and verification measures for mobile phone users. South Africa’s experience of introducing similar requirements under the Financial Intelligence Centre Act (FICA) showed that identity verification could be a problematic requirement for the poor and may unintentionally exclude many people from this service and thereby also from the financial services delivered through mobile phones. As a consequence, exemptions were granted from the FICA requirement for accounts under a certain limit and the South African Reserve Bank introduced a non face-to-face mobile bank account origination regime to facilitate the delivery of low value mobile financial services. What will be the interplay between this and RICA? Will RICA’s customer identification data meet anti-money laundering requirements and facilitate the development of transformational mobile banking in South Africa?

 

Click here (PDF: 671 KB) to download the report, authored by Louis de Koker

 

 

Additional Info

  • Country: South Africa
  • Institution: Cenfri, FinMark Trust
  • Date Published: 2010
  • Document Type: Briefing Notes

Search news, publications and events

 

The impact of RICA on financial inclusion (2010)

FinMark Trust commissioned this brief, exploratory note to consider the impact of the Regulation of Interception of Communications Act (RICA) on mobile financial services and financial inclusion. In 2009, the South African government amended RICA by introducing identification and verification measures for mobile phone users. South Africa’s experience of introducing similar requirements under the Financial Intelligence Centre Act (FICA) showed that identity verification could be a problematic requirement for the poor and may unintentionally exclude many people from this service and thereby also from the financial services delivered through mobile phones. As a consequence, exemptions were granted from the FICA requirement for accounts under a certain limit and the South African Reserve Bank introduced a non face-to-face mobile bank account origination regime to facilitate the delivery of low value mobile financial services. What will be the interplay between this and RICA? Will RICA’s customer identification data meet anti-money laundering requirements and facilitate the development of transformational mobile banking in South Africa?

 

Click here (PDF: 671 KB) to download the report, authored by Louis de Koker

 

 

Additional Info

  • Country: South Africa
  • Institution: Cenfri, FinMark Trust
  • Date Published: 2010
  • Document Type: Briefing Notes

Search news, publications and events