The arrival of Mobile Money in Ghana was hailed as a game changer that brought banking to the doorsteps of the people and a bridge that closes the gap between the banked and the unbanked.
Today, it has become an essential part of the country’s financial ecosystem, powering everything from daily remittances to large-scale business transactions. It has also lifted millions into financial participation and made Ghana one of Africa’s leaders in digital finance.
But alongside this success story lies a troubling reality. The same platform that has brought convenience to millions has also become fertile ground for fraud, money laundering and cybercrime.
The convenience of mobile money has created a financial space where transactions occur at the speed of light, often with little verification of the person behind them. The integrity of any digital financial platform is determined by the level at which they can identify and verify its users. Anytime that critical feature is ignored, it creates loopholes for leakages that can easily sink the entire platform.
Among the features that made the mobile money accessible and easy to use is user verification. However, this feature is growing to become the Achilles heel if not properly treated would affect users trust in the system.
What would be even more worrying is when regulators appear to be turning a blind eye to lapses that would never be tolerated in traditional banking institutions.
The lack of strict identity verification at agent points during cash withdrawals in our mobile money transaction is an issue stakeholders must pay critical attention to.
In theory, mobile money agents are required to demand valid identification from customers before completing a cash-out. In practice, this rule has become more of a suggestion than an obligation. Walk to any mobile money kiosk, and you will likely find transactions being carried out with no physical ID checks. Just a name, phone number, and sometimes a hastily entered ID number recited from memory can get anyone to receive monies at Agent points.
Recent revelations from the Financial Intelligence Centre (FIC) and independent financial think tanks have painted an alarming picture. They point to mobile money platforms as the preferred channel for illicit transactions in Ghana.
From petty scams to sophisticated money laundering schemes. When fraud is detected, the process of identifying the actual beneficiary becomes complex, time-consuming and, in most cases, inconclusive. Law enforcement agencies often find themselves helpless in tracing stolen funds. The digital trail goes cold once money is cashed out through an agent who never demanded proper identification.
The numbers are staggering, and they point to one undeniable fact that fraudsters have found comfort in the loopholes of a system designed to include everyone but now exploited by those who understand its weaknesses. Some of the Agents become accomplices in this chain of financial crimes. And it becomes scary when our old folks who are not technologically savvy disclose their mobile money account passcodes to some of these compromised agents.
The Bank of Ghana’s own guidelines on Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) require that Electronic Money Issuers verify the identity of customers before transactions are completed. The National Communications Authority (NCA) may only regulate the telecom infrastructure that hosts these financial services.
Yet, somewhere between these two regulators, enforcement of this security feature is been watered down. The result is an ecosystem that is growing very big and fast with safe haven for cybercrime activities.
The Regulators must balance accessibility with accountability. The same rigor applied in traditional banks where no cash leaves the counter without proper verification should be replicated at mobile money agent points. “No ID, No Cash-Out” should not be a slogan but it should be a law.
The technology to achieve this already exists. Agents can easily verify Ghana Card details through electronic validation tools. What is missing is enforcement and consistency. Regulators must demand that operators integrate real-time ID verification into their systems and sanction agents who repeatedly flout the rule.
The National Identification Authority, the Bank of Ghana, the NCA, and the National Information Technology Authority must collaborate more closely to close the data gaps that allow criminals to hide in plain sight.
The time for leniency is over. Ghanaians deserve a mobile money system that is as safe as it is convenient. Financial inclusion should not come at the cost of financial integrity. If the regulators fail to act decisively, the platform that once symbolized empowerment could soon become a digital black hole where money disappears, criminals thrive, and trust in the system fades.
Let us verify every identity, at every point and every time to ensure safety on our mobile money platforms.
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