One of the key outlying points from the numerous fraud schemes operating in the country illegally is how Telecom Mobile Money services have been used to facilitate the scams.
Case in the study is the BLQ betting scam that required users to channel money from their MM wallets to the accounts of these scam operators. The size of the sums of money being transferred in this short period of time should have been enough for these operators to raise suspicion and make agencies like Financial Intelligence Authority know about it.
This would enable the regulator to inquire from the line agency on the validity of the license of the scamming company and raise flags in time to save unsuspecting victims.
BLQ like many of these schemes was operating illegally without a license from the regulator.
What if the money channeled to them was used to fund terrorism? Would telecom companies not be complicit in facilitating the activity?
Its their role to regulate as empowered by the central bank which recently ordered them to separate their financial arms from the telecom operations to enable them to do this kind of work more easily.
However, it would appear that the telecoms put earnings and profit ahead of regulation. And if indeed no regulations exist to compel them to do so, it is time that it is put in place.
For how long do Ugandans have to cry out as though they exist no regulations to protect them as citizens? The fintech space cannot be left to operate as the wild wide west!
