Emerging Themes in Asian Prepaid Regulation


Published on

Presentation at Prepaid Summit Asia 2011, Mumbai India, focuses on financial regulatory issues for prepaid payment instruments with examples from Asia, Asia Pacific and Australia

Published in: Economy & Finance, Business
  • Be the first to comment

  • Be the first to like this

Emerging Themes in Asian Prepaid Regulation

  1. 1. EmergingThemes in AsianPrepaidRegulationPrepaid Summit Asia 2011Mumbai, Dec 2011Louise Malady
  2. 2. Overview Prepaid regulatory issues in Asia Examples of different approaches to regulation (regulator and industry) Emerging themes
  3. 3. Asia – Regulatory FocusFrontier/ Emerging Developing Developed Personal  Channelling  Innovation Safety remittance  Competition Financial flows Inclusion –  Legitimate, saf Savings e and cost effective PNG Philippines Australia, Singapore
  4. 4. Common Concern Whatto do when non-banks are proposing to be the issuers of the prepaid value? Regulatory response will depend on local context
  5. 5. Regulations Influence… How business models are structured How agents are used in your model How customers are able to register for accounts How customers can do cash-in and cash- out transactions
  6. 6. Regulatory Focus Safety Efficiency Issuance and  Interoperability Management of the Float  Competition Operational/Security Risks AML/CFT and KYC Agents Consumer Protection
  7. 7. Balance Investment in security by issuers Mitigation of risk - money laundering, terrorist financing and fraud
  8. 8. AML/CFT and KYC Financial Action Task Force (FATF) Tiered KYC (Philippines, Singapore) Financial and Telco Regulators - is there communication between the two regulators? (Fiji)
  9. 9. Agency Arrangements What can non-banks do? Cash-in and cash-out?(Cambodia / Malaysia) Liability of banks and non-banks – is it the same? (Philippines / Kenya) Liquidity and credit risk – mitigate through improved clearing and settlement arrangements (Philippines) Consumer protection and role of agents (Philippines)
  10. 10. Consumer Protection Disclosurerequirements Redress mechanisms Clear identification of users for KYC Consumer education(examples – Philippines and Australia)
  11. 11. Regulatory Focus - Efficiency Interoperability Competition Examples – Australia, Singapore, PNG
  12. 12. Industry Approaches Involve financial regulator early (Philippines, Indonesia) Encourage cooperation with regulator (Cambodia) Encourage cooperation among industry players in working with regulator (Philippines) Seek beneficial partnership solutions(China)
  13. 13. Emerging Themes Prepaid used as savings mechanism Interoperability Regulatory proportionality
  14. 14. Thank Youlouise.malady@yahoo.com