The effectiveness of the current regulatory framework in combating money laundering risk on Zimbabwean mobile money operations. · Electronic Theses and Dissertations

Author

Mitchel Mungazi

Title

The effectiveness of the current regulatory framework in combating money laundering risk on Zimbabwean mobile money operations.

Abstract

This research examines the effectiveness of the current regulatory framework in combating money laundering risks associated with mobile money operations in Zimbabwe. The research provides the background where it highlights the rise of mobile money in Africa, risks and stages of money laundering and existing regulatory framework bodies. The main objective of this research is to assess effectiveness of the current regulatory framework in combating money laundering risk on Zimbabwean mobile money operations. The researcher used secondary objectives such detention techniques and AML tools being employed to curb money laundering risk on mobile money operations, the role of mobile money operators in Money Laundering risk and if the country is achieving success in the fight against money laundering. A sample of 30 people was used and majority that is 15 individuals responded representing mobile money agents, 10 individuals’ represented mobile money operators and the remaining 5 from mobile money regulators. SPSS was used to analyze data with the use of four main variables such as Suspicious Transaction Reporting, AML training and awareness, transaction monitoring and KYC procedures. Results show that all four especially Suspicious Transaction Reporting were deemed effective for reducing money laundering cases except for KYC on which the researcher concluded that the registration requirements were lax. A survey also reviewed that 80% of mobile money agents reported encountering cases of money laundering, indicating inadequacy in the current regulatory framework. The researcher recommends that mobile money operators enhance their KYC procedures by requiring more comprehensive customer information, implementing risk-based due diligence measures, and utilizing adverse media screening and data analytics for on-going monitoring. The researcher also suggests that regulators should conduct a thorough review of the current regulatory frameworks governing mobile money operations and enhance their monitoring and enforcement mechanisms to ensure compliance with anti-money laundering tools.

Date

June 2024

Publisher

BUSE

Keywords

Money laundering

Regulatory framework

Combating

Supervisor

N/A