While FATF’s revised AML/CFT Guidance makes strides toward promoting financial inclusion, it still lacks clarity on key issues. The public consultation is an opportunity for stakeholders to provide feedback and shape a more balanced final version.
The consultation window is now open for the FATF’s revisions to its Guidance on AML/CFT and Financial Inclusion. The Guidance has a real impact on the financial inclusion of millions worldwide, but what is it that stakeholders can do?
CGAP’s WAEMU Lab has been working to improve consumer protection for DFS users in Côte d’Ivoire, Senegal, and Burkina Faso. A 2022 survey in Côte d’Ivoire revealed significant risks, but a 2024 follow-up showed progress, with 3 key lessons emerging.
For consumers to harness the benefits of open finance, adopting a comprehensive consumer and data protection regulatory and supervisory framework, putting consumers first, and ensuring collaboration among key actors in the ecosystem is imperative.
The FATF's proposed revisions to its AML/CFT/CPF standards refine how the risk-based approach is implemented. While a step forward, the FI community should consider how much these changes can be leveraged to ensure greater financial inclusion.
The FATF is updating its AML/CFT standards, with a public consultation open until December 6. The changes could boost access to financial services, and CGAP calls on the financial inclusion community to review and share feedback.
DFS users in Burkina Faso face significant risks. A national survey revealed key challenges: poor network quality, fraud, and user difficulties. The most vulnerable—women and rural populations—struggle the most.
Borrowers in Cote D’Ivoire had higher rates of loan non-repayment than those in Kenya and Tanzania, and CGAP wanted to know why. Qualitative research results shed more light on the users’ experience and the possible causes of the late repayments.
For the first time, there is comprehensive data on digital financial services users in the WAEMU region, and it highlights the need for more responsible digital finance ecosystems. Strengthening consumer protection is crucial.
Climate-driven financial policies could inadvertently end up undermining financial inclusion efforts. Authorities and funders must understand the pathways through which risks could occur and the opportunities for supporting green finance effectively.
Gender-disaggregated data is the cornerstone for designing strategies and interventions that not only help increase women’s use of financial services to be more resilient and prosperous but also empower them to be stronger market players.
Consumer and data protection risks have historically been treated as separate concerns. Instead, all authorities involved with consumer data protection should work together to regulate in a way that ensures the responsible use of consumer data.
Mapping the stakeholder landscape can be a useful tool to assist market conduct authorities in designing various aspects of a consumer advisory panel, ensuring they make sound strategic decisions about whom to involve and how best to do so.
As financial authorities across the world develop plans to respond to the changing climate, they have opportunities to create a positive feedback loop of expanded financial inclusion and reduced climate risk.
CGAP undertook qualitative research on how industry associations can promote responsible digital finance. We identified 10 activities that support customer-centricity, capability, and collaboration – the building blocks of responsible digital financial services ecosystems.
Digital credit can provide opportunities for financial inclusion and improved resilience, but new survey data from Côte d'Ivoire shows the need for greater consumer protection.
What was once an edgy new market with promises of high returns is now better known for scandal and volatile losses. Better protections for crypto consumers are urgently needed, especially for those who are low-income and least able to weather losses.
Open finance gives consumers control over their personal financial data, leading to more suitable and better-targeted financial services. But this ability to move entire financial histories both empowers consumers and poses risks.
The growth of India’s fintech industry has historically been driven by digital payments, but now digital credit is poised to take the reins. But what is digital credit, and how can its regulation help narrow the credit gap for India’s MSEs?
Open banking initiatives must be well designed to deliver the benefits they promise consumers and financial service providers - Nigeria’s framework offers a look at both the opportunities and potential pitfalls of implementing such a scheme.
