Developing countries are severely constraint by the physical infrastructure of the financial institutions which means that a large part of its population is excluded from the formal banking system such as Kenya and many other African countries. Thus with the aid of mobile money the populations of these developing countries are benefited. Some benefits of mobile money are that financial inclusion has a multiplier impact on the lives of people drawn into the formal financial system which leads to social inclusion. Thus when the poor class get access to financial services, their cash flow management gets better, their financial planning is enhanced and their savings are increased with increased options for providing for themselves for their old age at this time. (Agrawal, 2010) Mobile money is called as intangible cash in the economy, in the absence of formal banking system; most of the transactions are cash based giving no audit trail to the regulators. M-PESA (mobile money) brought in the transparency in the money transactions by reducing the availability of cash and digitizing the transactions. M-PESA is equivalent to smart cards …show more content…
The cost of money remittance is very high in most of the parts of the world ranging from 3 % to as high as 10%. This is why more people depend on informal channels (through friends and family) to remit money or physically deliver the money. Traditionally, this has meant high fees, risky unregulated services, or long expensive trips carrying cash in an unsafe and unpredictable environment. It has been observed that M-PESA users needed to make fewer trips back home to deliver money and the transaction size also came down with frequent transfers. Unlike bank, the M-PESA service is accessible 24X7 and money can be sent anytime, anywhere. (Agrawal,
Terrorist and criminal organization have internal problems that can be exploited by law enforcement and policy makers. Form author Nikos Passas we understand that terrorist organization have a lot of different methods of funding, including crime and charities. According to Passas the best way to combat this is to increase transparency and traceability in economic transactions, which was also concluded by author Jonas R. Want in his article discussing the regulation of Hawala. By doing this globally we can combat the financing of terrorist and criminal groups by having better knowledge of the movement of their money. According to author William Phil’s two thousand and seven peace, following the money is the most powerful tool in combating illegal financial transactions. The argument is supported by an Bichler, Bushes, and Malm’s article that states that understanding the market system in which criminal organizations operate is necessary when identifying the key players and mechanisms used. Overall, strengthening financial transaction transparency will help law enforcement combat both terrorist and criminal organization which will have great affects on both organizations
Binhammer, H. H. & Peter S. Sephton. Money, Banking and the Financial System. Nelson, 2001.
users to send money, using computers. The same can be done by means of mobile phones that are support Web.
In this report I will go on to discuss the topic of money laundering in the following order; firstly, I will begin by explaining what is money laundering?, why it is done?, and how it is done? I will then go on to explain the effects of money laundering and the institutions/organisations that are at risk from these activities. I will also be discussing the current situation in the UK regarding money laundering and whether anything can be done to prevent or restrict laundering activities, and will then go on to conclude my findings.
secure element installed on every new iPhone is what makes the product great. McDonalds have
Money has evolved with the times and is a reflection of the progress of man. Early money was a physical commodity, grain, gold or silver. During the vital stage, more symbolic forms of money such as certificates of deposit, bank notes, checks, letters of credit, bonds and other forms of negotiable securities came into prominence. Social development transformed money into a trust, “In God We Trust' it says on the back of the ten-dollar bill.” (The Ascent of Money, 27)
Seibel, Hans Dieter and Fabrizio Felloni. 2005. “Mainstreaming Banking with the Poor in the Philippines.” Internationales Asienform 36(3/4): 361-375.
Over the last ten years people in the United State and around the world have heavily relied more on their debit or credit cards to process transactions of their purchases. In the old days it used to be when you would get your paycheck on Friday and rush to the bank during your break or lunch in order to cash withdraw your funds or deposit them into your account. It used to be where you carry cash to buy groceries, pay bills, and go shopping. Now some people don’t even set foot inside their bank branch because they are paid using direct deposit or the funds are loaded into a debit card provided by their employer. Many employers from around the globe don’t even issue paper check anymore.
The use of credit and debit cards today are taking a tour in the sense that electronic cash is becoming more admissible as the world makes a switch towar...
M-commerce (mobile commerce) is the buying and selling or transaction of goods and services through wireless devices such as cellular phones and personal digital assistants (PDAs).
Money can often be duly considered as one of the prime reasons for which most of the criminal activities happen in this world. In this regard, one of the commonly identified crimes associated with money is the aspect of money laundering. Money-laundering is regarded as the process through which criminals of all sorts cover the origin of their wealth in order to avoid suspicions from various law-enforcement agencies. This is also performed by the people with the intention of hiding evidences that could lead to their trail in front of the law. Money laundering can be executed through several ways that include structuring and round tripping among the primary ones. In the method of structuring, money is broken into several small deposits that reduce the chances of any suspicion from various law enforcement agencies. In relation to the method of round tripping, money distorts the market, further lessening the chances for law enforcers to detect the money (UNODC, 2013; [1] Legal Information Institute, n.d.).
Electronic money (e-money/e-cash)- This is customary money converted into an electronic format to pay for online purchases.
The invention of money was a major improvement in peoples’ lives. In the past, people usually had to travel all day to find the person who is willing to exchange their goods. In addition, the goods people want to exchange did not have the standard value of measurement. This led to unequal exchanges. Furthermore, it is not convenient to carry heavy goods from one place to another for an exchange. To solve these issues, money will be the only solution. Later, people tend to develop money from cowry shells to credit cards for the convenience and to improve their society.
A cashless society will further improve the globalisation that characterise our present time. The computerised systems can be used to decrease the quantity of paper trail therefore substituting paper cash with cashless credits or electronic money transfers. However, in a cashless economy, this will change with certain crimes almost eradicated. It will also be faster to generate electronic payments than cash as Near Field Communications (NFC) chips make their way into more payments cards and mobile handsets as well providing protection not applicable to purchases made using cash. This technology is simple with low power wireless link evolved from radio-frequency identification (RFID) tech that can transfer small amounts of data between two devices identifying us and our bank account to a computer. Another benefit of drawing nearer to a cashless society is that other companies are providing pioneering cash-free solutions to the payment related problems we come across. For example, WisePay, a provider of e-payments services, is deploying technologies that ensure parents no longer have to worry about sending their children to school with cash to pay for meals, excursions and other fees that will eliminate the likelihood of being caught short for cash or children misplacing money. The Government also has valuable explanations why they may deem to turn away from cash. Due the main factor of printing and distributing cash, not to mention ensuring the economy is free from forgeries which are all costly endeavours estimating that the cost to society of using cash is between 0.5 and 1.5% of GDP annually. In addition, there are many technological innovations that propose there is a real enthusiasm for an alternative to cash with the upsurge...
Remittance has now become a commonly used term, however rarely defined; its concept has been linked with the concept of migration. When we see the definition it’s linked to its motives, effects, uses, kind of transfer and the channel of funds transfer. According to Ratha (2003) remittance are defined as migrants’ capital transfers, which are assets that a migrant brings into or takes out of the country. Remittances are also stated as a