Policy & Legal Issues in Mobile Money Transactions
Presentation to Uganda Colloquium of Judges and
Magistrates in 2014-Imperial Royale, Kampala, Uganda
By Ojijo Pascal Al Amin
Lawyer & Guest Lecturer In AICT Law, Law Firm Management, And Financials Services Law; Public Speaker, Consultant,
Entrepreneur. ojijo@[Link]: +256 776/701 1000 59
Same Monkeys, New Forest
Common
Law
Principles
Equity
Maxims
Mobile
Money
Law
Statutory
Rules of
Interpretatio
n
Constitutional
& Public Law
Principles
to smartest way to
learn the law, is to
learn the principles
upon which the law is
founded
Ojijo-Legal Rhetoric:
Principles,
Presumptions, Maxims,
Doctrines, Rules and
Tests of Law. ISBN.
978-9966-123-02-2
ISBN
978-9966-123-00-8
author of 35 books
consulta
nt
PUBLIC SPEAKER
Financial Literacy
Personal Branding
Public Speaking
BUSINESS
STRATEGY
Strategic Planning
Financial Projections
Business Profiles
Saccos /Investment
Clubs
EXPERT LAWYER
ICT Law
My Offices
Mobile Money in African Countries -34/54
Not Covered
37%
Covered
63%
Mobile Money: Facebook Users
3:1
Telcos with Mobile Money
Without Mobile
Money
23%
With Mobile
Money
77%
MM Accounts vis-a-vis Bank
Accounts
4X
more mobile money accounts than bank accounts
(Kenya, Madagascar, Tanzania and Uganda)
>mobile money agent outlets than bank branches in 28
countries
Chart Title
East Africa
World
83%
75%
63%
37%
36%
25%
17%
5%
Top 20 Mobile
Money
Companies
Top Transactions
Adult Users
% of GDP
From 1 provider in 2001, to 219 providers in 2013
Mobile Money-Uganda Statistics
20% of GDP (GSM, 2013)
8.9 million of 15 million mobile subscribers using
MM (UCC, 2013)
Growth Rate of transactions is 211% (Lous
Kasekende-BOU, 2013)
Main transactions (air time purchase, person to
person and person to business, utility bills,
service bills, saving vehicles, bank transactions)
Why?
"Justice for all."
Mobile
Payment (
Commerce &
Government)
Mobile
Money
Mobile Money
Transfer
Mobile
Banking
(Deposits &
Withdrawals)
Jurisdictional
Sovereignty & Limiting
Agreements
Subject Matter/Geography
Criminal vs Civil
Parties
Mandate Wars (Judicial
Review)
Cross Industry Regulators
(UCC, BOU, Competition
Authority, Insurance Regulatory
Deposit Protection
Consumer Protection
Prudential Regulation!
Trust Accounts c.f. Lawyers Trust Accounts
Management
Ascertainability =Insurability!
Interest on Deposit (Assets)
Case Study: Pass Through Deposit Insurance
(US & Kenya)
telcos
banks
mobile money
players
ecosystem
regulato
rs
agents/
mercha
nts
legal ecosystem
BOU Act
UCC Act, 2013
Financial Institutions Act, 2004
Computer Misuse Act (2011)
Electronic Transactions Act, 2011
Electronic Signatures Act, 2011
Attendant Regulations
Money
Laundering
Consumer
Protection
Interopability
Supervision
Bank of
Uganda MM
Regulations
(2013)
Definition of
Terms
Standards
Stakeholders
BOU-UCC
Clarity?
NITA-U?
Legal Entities
SACCOS
?
Competition
Mobile Money Transaction
Agent
Escrow
Bank
Account
User
Agent
EFT Message
Simultaneous
Debit/Credit
Order
Bank of
Uganda
Competition
Authorities/
Courts
Mobile
Money
Transactions
URA
UCC/
NITA-U
Money Laundering Generally
Placement
Layering
Intergration
Splitting
Deposits
(Agents &
Users)
Round-Tripping
Black Salaries
Blending Funds
Mobile Money
LaunderingStrategies
Mobile
Gambling
Currency
Exchanges
Loan
Repayment
(Mobile
Banking)
Mobile Money Laundering-Response
Know Your Customer (KYC) Rules
SIM Registration
Recording Transactions
Intelligent Networks
Spot Supervisions
Mobile Money Frauds
Pin Code Fraud
Network Busy
Telecoms Employees
Fraud Agents
Mobile Money Crimes
Derivative Crimes
Money Laundering
SMS Fraud
Help My Mother Fraud
Deposit Splitting
Ghost Agent Lines
Dispute
Resolution
Personal &
Traffic Data
Price
Information
Complaints
Mechanism
MOBILE
CONSUMER
PROTECTION
Competition
Protection of
Consumer
Assets
Privacy
Cancellation
Right
Net Neutrality!
Access
Neutrality
Balkanization
Mobile Money to Forex Exchange
Do we need new pedigree of forex license?
Money Transmittinglicense
Money Transfer License
Forex License/Money Changing License
How much?
What qualifications?
Additional tax to agents?
Loss of revenue?
Taxation vis--vis Innovation
Double Taxation, Place of Supply Doctrine,
versus Permanent Establishment Doctrine,
Residence, Source Rules & Cross
Ownership of Agencies, Sub Agencies, etc
Capital Gains (Interest on Deposits,
Income Recognition, Advances to Agents)
Commissions (Agents, Shared Resources,
etc)
Assets vis--vis Liabilities (Agents
Financing, Deposits, etc)
Competition
Agency
Doctrine
Freedom
to Contract
Websites + Mobile Phones
Webile
Data Fluidity= Liability Swamp
Civil
Claims
Torts
Breach of
Contract
Crimes
Strict
Liability
Other
Crimes
Regulation?
Public
Choice
Theory/
Utilitarian
Analysis
Transaction/
Functional
vis--vis
Institutional/
Statutory
Cost Benefit
Analysis/
Economic
Analysis of Law
Mobile Money & Internet Banking
Act!
Liability of ISPs, telecos, banks
Definition of emoney, and currencies
Crimes, police powers,
Taxation, regulation, jurisdiction,
interoperability of mandates
Consumer protection (data, security
guidelines, privacy, deposit protection,
dispute resolution mechanisms)
Software
As A
Service
Cloud
Computing
Shared
Resource
Models
Shared
Towers
Shared
Agents
MNOs Becoming Telcos
(Competition)
Equitel
Legality of BOUs Involvement
Financial Consumer Protection
Mobile Money Guidelines
Indirect Supervision (Escrows, Partners)
Setting Limits on Withdrawals, Sent Amounts, etc
Investigation, Compliance and Reporting
Requirements
Deposit Protection Requirement (Financial
Consumer Protection)
Prudential Regulations
Fiscal Policy (Anti Money Laundering)
Monetary Policy (Macro Debt vis--vis Micro Credit)
Regulating Legal Tender vis--vis Alternative
Currencies
Matters Arising
Stored value, escrow
Crypto currencies,
virtual currencies,
alternative currencies
emoney
money
Other Legal Issues
Breach Of Contract Enforcement
Intermediary Liability (Strict, Negligent, etc)
Data Security (Equitel Case)
E-Intellectual Property: , c-Patents, TradeMarks,
Domains
Institutional Reforms
Gaming
Authority/Gaming
Commission
Competition Authority
Mobile Money Working
Group
Aggregators
Thank You!
Webale Nyo!
Ahsateni Sana!
My Mother is Very Proud of You!
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