Who Regulates the Mobile Money Operations by Telco ’s? The Need for an Effective and Robust Legislative and Regulatory Framework in Ghana

Abstract

Ghana has evolved with the rest of the world in technological advancement. Mobile phones have so many peripheral merits besides phone calls and text messaging. Mobile Network Operators (MNO) has ventured into rendering financial services other than the usual mandate of providing telecommunication services. Mobile Money Operations (MMO) by the Telco’s in Ghana has become a tool to mobilize and encourage savings for the mostly unbanked populace of Ghana, and again as vehicle towards the ultimate aim of moving the economy into a cashless economy. However, there are unseemly implications if these activities of the Telco’s are not strongly regulated by the appropriate regulatory bodies. Telecommunication activities in Ghana are normally regulated by the National Communications Authority (NCA), apparently the financial services activities of Telco’s are beyond the purview of NCA and naturally falls within the mandate of the Bank of Ghana (BoG). This article seeks to implore the BOG to come out with a much stronger and robust legislative framework than what is currently available. The article compares and analyses some legislative frameworks of countries such as Nigeria, Kenya and Tanzania. Finally, the paper gives recommendations on regulating the MMO of Telco’s.