Benin Annual Monitor 2015

With only three e-money providers, including two that received their licence in late 2013, digital financial services (DFS) in Benin are limited both in terms of providers (ASMAB, Moov, MTN) and products (cash-in/cash-out, airtime top-ups, person-to-person transfers). Agent networks are largely proprietary and there is no interoperability. Banque Centrale des Etats de l’Afrique de l’Ouest (BCEAO) issued new and better regulatory instructions for e-money issuers in May 2015 that address some of the gaps in the 2006 instructions. However, there are still opportunities for improvement, particularly with regards to know-your-customer (KYC), interoperability, agent banking, customer protection, market conduct and supervision. There is genuine misunderstanding in Benin of the e-money regulatory framework, especially by microfinance institutions (MFIs). Neither Moov nor MTN has applied for an e-money licence, though ASMAB has obtained one and is the first MFI to do so in the West African Economic and Monetary Union (WAEMU).