A country in southwest Asia wanted to improve access to financial services for both citizens and for a significant refugee population. Concerns about inclusion and efficiency, along with the important role of cross-border remittances, indicated that digital financial services would offer the best solution. To enable the roll-out of DFS, the country’s central bank—backed financially and technically by two international development institutions—required the creation of an appropriate regulatory framework.
An expert advisory team created a comprehensive framework that drew on a range of analyses. These included a comprehensive baseline study of digital person-to-person remittances, a legal and regulatory diagnostic assessment of telecommunications, payment providers and switches, consumer protection and AML regulations and interoperability risk framework, and a Gap Analysis against international best practices. The resulting recommendations were validated through workshops, focused discussions, and one-on-one meetings with key bank and non-bank financial players. Following this, the team sought and received approval for both a Digital Financial Services risk framework and draft anti-money laundering legislation.