NAIROBI — In recent years, the humanitarian and development sectors have started to lean more heavily on mobile- and tech-based financial services to increase access to remote populations, make aid more efficient, and heighten financial inclusion.
But telecommunication and financial service providers are often prevented from opening accounts — such as for mobile money wallets — for people who can’t prove their identity. That could apply to an estimated 1 billion people globally who do not have government-issued identification.
The restrictions are part of global efforts to reduce money laundering and block terrorist financing through “know your customer and customer due diligence requirements” — also known as KYC and CDD requirements — as well as those in place to secure SIM card registration.