Mobile Money Transactions, The Case for Proper Legal Framework in Uganda.

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TABLE OF CONTENT

DECLARATION ..................................................................................................................... ii

APPROVAL BY SUPERVISOR ........................................................................................... iii

DEDICATION ........................................................................................................................ iv

ACKNOWLEDGEMENT ....................................................................................................... v

TABLE OF CONTENT .......................................................................................................... vi

LEGISLATIONS .................................................................................................................... ix

LIST OF ACRONYMS ........................................................................................................... x

CHAl>TER 0 NE .................................................................................................................... 1

GENERAL INTRODUCTION ............................................................................................ 1

1.1. Introduction ...................................................................................................................... 1

1.2 Statement of the problem ................................................................................................... 3

1.3 Objectives of the study ...................................................................................................... 3

1.4 Significance of the study ................................................................................................... 3

1.5 Scope of the study .............................................................................................................. 3

1.6. Hypothesis ........................................................................................................................ 4

1.7. Methodology ..................................................................................................................... 4

1.8 Literature Review .............................................................................................................. 4

l. 9 Chapterization .................................................................................................................... 8

CHAPTER T'VO ................................................................................................................... 9

2.1.0 EMERGING EXPERIENCES OF M-PA YMENTS ................................................. 9

2.1.1 Developed countries ....................................................................................................... 9

2.1 General Enabling Environment ....................................................................................... I 0

2.2 Proposed enabling principles .......................................................................................... II

vi

2.3 Approaches to implementing the principles .................................................................... 12

2.3.1 Principle 1. There should be sufficient legal certainty around the status of electronic

contracting ............................................................................................................................. 12

2.3.2 Principle 2. Customers should be adequately protected against fraud and abuse ........ 13

2.3.3 Principle 3. Regulators should encourage inter-operability, through ensuring (i)

providers have access to payment systems and (ii) consumers are able to switch financial

providers ................................................................................................................................ 14

2.3 .4 Principle 4. Account opening CDD procedures should be risk-based, and not unduly

prejudice account remote account openings by small customers .......................................... 16

2.3.4.1 CDD exemptions for small value accounts ............................................................... 16

2.3.4.2 Guidance for Risk based CDD .................................................................................. 17

2.3 .5 Principle 5: Customers should at least be able to make deposits and withdraw cash

through agents and remote points outside of bank branches ................................................. 17

2.3.6 Principle 6: Adequate provision must be made for the issuance of e-money by

appropriately capitalized and supervised entities which are not necessarily banks .............. 18

2.4.1 Openness and ceiiainty at the early stage ..................................................................... 20

2.4.2 Additive and transformational approaches to banking ................................................. 21

CHAPTER THREE ............................................................................................................. 23

REGULATORY & POLICY ISSUES ............................................................................... 23

3.1 Mobile Money Regulations ............................................................................................. 23

3.2 Review of Bank of Uganda's Guidelines on mobile money ........................................... 23

3.2.1 Are consumers adequately protected? .......................................................................... 23

3.2.2 Regulation 12 provide for Consumer Protection and Recourse .................................. 23

3.3 Mobile Money Agents ..................................................................................................... 28

3.4 Money Laundering Viz Via Mobile Money .................................................................... 31

3.5 Electronic Transcations Act Of2011 Viz Via Mobile Money ........................................ 32

3.6 Conclusion ....................................................................................................................... 33

vii

CHAPTER FOUR ............................................................................................................... 34

4.1 EMERGING EXPERIENCES OF MOBILE MONEY PAYMENTS ..................... 34

4.2 Developed countries ........................................................................................................ 34

4.4.2 Developing countries: Philippines ................................................................................ 35

4.4.3 Developing countries: Africa ........................................................................................ 36

4.4.3. I South Africa .............................................................................................................. 37

4.4.3. Kenya- M-Pesa ........................................................................................................... 38

4.5 Conclusion ....................................................................................................................... 41

CHAPTER FIVE ................................................................................................................... 42

5.1 Introduction ..................................................................................................................... 42

5.2 Recommendations ........................................................................................................... 44

5.2.1 Bank of Uganda to set up a separate body to monitor mobile money .......................... 44

5.2.2 Financial laws should work together with Telecommunication laws ........................... 44

5.2.3 Control of money laundering ........................................................................................ 45

5.2.4 Proper Legislation to regulate mobile money transactions .......................................... 45

5.3 Conclusion ....................................................................................................................... 45

BIBLIOGRAPHY ................................................................................................................. 46

Websites ................................................................................................................................. 46

CHAPTER ONE GENERAL INTRODUCTION 1.1. Introduction Extending the outreach of financial services to the un-banked or lowest socio-economic areas and people belonging mostly to the low income strata of the society- in a cost effective manner is viewed as a big step towards poverty alleviation. Emerging advances in information and communication technologies and their widespread usage offer tremendous oppmiunity to achieve this much desired goal by making available non- traditional ways of providing financial services. However these alternate delivery chmmels should be looked into prudently and adopted only after carefully balancing the risks and rewards. It is at this point that legal regulatory issues of such new technologies m·ise. It should be noted that the regulators role is not to try to eliminate these new channels but to balance them appropriately with the benefits of using these new channels and to create an enabling regulatory environment where new teclmologies are put to use on the efficient frontiers of the risk-return trade off. This Research presents a11 overview of Mobile banking, an analysis of the legal or regulatory framework and issues arising therein followed by the development impact mobile banking has had since its implementation. It mainly focuses on Mobile Money, together with information from several studies conducted on other countries' experiences with mobile banking and websites of existing mobile banking service providers in those countries, banking laws, regulation policies and other laws.

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APA

Frontiers, E. & JANET, K (2022). Mobile Money Transactions, The Case for Proper Legal Framework in Uganda.. Afribary. Retrieved from https://afribary.com/works/mobile-money-transactions-the-case-for-proper-legal-framework-in-uganda

MLA 8th

Frontiers, Edu, and KANY JANET "Mobile Money Transactions, The Case for Proper Legal Framework in Uganda." Afribary. Afribary, 25 Aug. 2022, https://afribary.com/works/mobile-money-transactions-the-case-for-proper-legal-framework-in-uganda. Accessed 29 Sep. 2022.

MLA7

Frontiers, Edu, and KANY JANET . "Mobile Money Transactions, The Case for Proper Legal Framework in Uganda.". Afribary, Afribary, 25 Aug. 2022. Web. 29 Sep. 2022. < https://afribary.com/works/mobile-money-transactions-the-case-for-proper-legal-framework-in-uganda >.

Chicago

Frontiers, Edu and JANET, KANY . "Mobile Money Transactions, The Case for Proper Legal Framework in Uganda." Afribary (2022). Accessed September 29, 2022. https://afribary.com/works/mobile-money-transactions-the-case-for-proper-legal-framework-in-uganda