Page 16 - Tanzania-Enabling-Mobile-Money-Policies
P. 16
enaBLinG moBiLe moneY PoLiCieS in tanZania
Bot reserves to itself the authority to approve to approve new services, a prerogative that will be critical to keep abreast with market innovations.
three customer “tiers” will be introduced for Cdd, with “least” requirements for individual, “partial” for small and medium enterprises
(Smes), and full requirements for corporate accounts. For each “tier” the regulations set maximum transactional limits while additional
limits must be agreed between the provider and the Bot. the regulations call for “relevant and reasonable” KYC requirements at each
of the three levels. to comply with verification requirements for the entry level account, individuals can provide their registered phone
number, voter’s registration card, or a letter from a ward executive. these simplified Cdd requirements may boost account registrations
since they are aligned with the Cdd conducted at the time of Sim registration/purchase. mobile money service providers must report any
suspected or confirmed cases of fraud to the central bank.
two features of the regulations may require significant changes for the existing deployments:
• interest accrued in the trust account can be used “for the benefit of the mobile payment services customers as determined by the
Bot.” however, it has not yet agreed that interest can be earned on the mobile wallet.
• System interoperability is a stated requirement within the regulations: “ a mobile payment service provider shall implement a mobile
payment service that is able to provide interoperable services with other mobile payment service providers at various level of interoper -
ability suitable to the market demands. t he level of interoperability may be at agent, customer or platform level.” t he words “able to
provide” imply compliance to international standards that allow interoperability. t he section does not mandate it but offers a framework
for interoperability driven by market value propositions. a gent exclusivity is not permitted, in line with the current market reality.
Providers and stakeholders have had the opportunity to comment on the second draft of the regulations, and the final draft has been
submitted to the ministry of Finance. however, it will only be adopted once the national Payment Systems act has passed, which is ex-
pected in early 2014. this legal certainty will bring more transparency in the licensing process and ensure that new entrants and current
service providers are operating on a level playing field.
Figure 3
The Tanzanian Mobile Money business Model designed
in drafT Mobile payMenT s regulaTions
cuSTody oF cuSTomer FuNdS pooled TruST AccouNT
regulATory eNgAgemeNT
lIceNSe AcquISITIoN ANd geNerAl complIANce
producT ANd buSINeSS developmeNT
mArkeTINg AgeNT NeTwork TechNology cuSTomer
mANAgemeNT cAre
brANdINg TrANSAcTIoNAl plATForm
lIquIdITy mANAgemeNT
commuNIcATIoNS (SuperAgeNcy) AcceSS To The hANdSeT
agenTs bANk
ACTIVITIEs
MObILE PAYMENT sERVICE
cusToMer PROVIdER (MNO sUbsIdIARY)
10
Bot reserves to itself the authority to approve to approve new services, a prerogative that will be critical to keep abreast with market innovations.
three customer “tiers” will be introduced for Cdd, with “least” requirements for individual, “partial” for small and medium enterprises
(Smes), and full requirements for corporate accounts. For each “tier” the regulations set maximum transactional limits while additional
limits must be agreed between the provider and the Bot. the regulations call for “relevant and reasonable” KYC requirements at each
of the three levels. to comply with verification requirements for the entry level account, individuals can provide their registered phone
number, voter’s registration card, or a letter from a ward executive. these simplified Cdd requirements may boost account registrations
since they are aligned with the Cdd conducted at the time of Sim registration/purchase. mobile money service providers must report any
suspected or confirmed cases of fraud to the central bank.
two features of the regulations may require significant changes for the existing deployments:
• interest accrued in the trust account can be used “for the benefit of the mobile payment services customers as determined by the
Bot.” however, it has not yet agreed that interest can be earned on the mobile wallet.
• System interoperability is a stated requirement within the regulations: “ a mobile payment service provider shall implement a mobile
payment service that is able to provide interoperable services with other mobile payment service providers at various level of interoper -
ability suitable to the market demands. t he level of interoperability may be at agent, customer or platform level.” t he words “able to
provide” imply compliance to international standards that allow interoperability. t he section does not mandate it but offers a framework
for interoperability driven by market value propositions. a gent exclusivity is not permitted, in line with the current market reality.
Providers and stakeholders have had the opportunity to comment on the second draft of the regulations, and the final draft has been
submitted to the ministry of Finance. however, it will only be adopted once the national Payment Systems act has passed, which is ex-
pected in early 2014. this legal certainty will bring more transparency in the licensing process and ensure that new entrants and current
service providers are operating on a level playing field.
Figure 3
The Tanzanian Mobile Money business Model designed
in drafT Mobile payMenT s regulaTions
cuSTody oF cuSTomer FuNdS pooled TruST AccouNT
regulATory eNgAgemeNT
lIceNSe AcquISITIoN ANd geNerAl complIANce
producT ANd buSINeSS developmeNT
mArkeTINg AgeNT NeTwork TechNology cuSTomer
mANAgemeNT cAre
brANdINg TrANSAcTIoNAl plATForm
lIquIdITy mANAgemeNT
commuNIcATIoNS (SuperAgeNcy) AcceSS To The hANdSeT
agenTs bANk
ACTIVITIEs
MObILE PAYMENT sERVICE
cusToMer PROVIdER (MNO sUbsIdIARY)
10
