Threat Finance by Keene Shima D

Author:Keene, Shima D.
Language: eng
Format: epub
Publisher: Ashgate Publishing Ltd.
Published: 2012-02-27T16:00:00+00:00

CASE STUDY 3: GLOBE TELECOM – PHILIPPINES

Globe Telecom’s mobile financial transactions system known as G-Cash,92 is the first mobile wallet service enabling cashless and card-less financial micro-transactions which delivers services with partners including banks, utility companies, 16 retailers, governmental bodies and non-profit organisations. Globe also has G-Cash outlets at their retail units. As an indication of its size and reach Globe had 3,500 partners, including 27 international partners in 15 countries in 2006. In addition, customers are able to use Globe’s retail units to deposit and withdraw cash.93

Registration for G-Cash services is a one-off process which involves the exchange of SMS94 messages between Globe Telecom and its subsidiary Touch Mobile subscribers. To register, a subscriber is required to send an SMS to the telephone number 2882, with a self-nominated 4-digit PIN, mother’s maiden name, first and last name, address and telephone number. These details are verified against the customer’s ID when withdrawing cash. All transactions and remittances with G-Cash are SMS text driven. As with the other comparative M-transactions services, G-Cash users are able to load prepaid airtime credits on to their mobile phones and transfer both cash and airtime credits between customers of Globe Telecom and Touch Mobile. In addition, cash-in and cash-out services can be accessed through the partners on provision of a valid ID card and on completion of a form, also in SMS format, to comply with AML requirements.95

There are also set limits for money transfers. Current transaction limits are set at 10,000 Php, which equates to approximately US$200, per transaction. There are also daily limits amounting to 40,000 Php, approximately US$800, and monthly limit of 100,000 Php, which is the equivalent of US$2,000. The service is competitively priced compared to traditional banking systems with cash-in and cash-out transactions below 1,000Php charged at a flat 10.00Php and a one per cent charge for transactions above 1,000Php.96 In order to comply with AML requirements, a number of measures have been put in place including transaction monitoring. Furthermore, SIM cards are checked for multiple registrations to the service by same phone number, the same name or the SIM card. In addition, continuous near-breaches of wallet limits are checked and noted. Although the service is preferable to cash, and G-Cash appears to be the most advanced out of the three M-Transfer systems examined in terms of AML/CFT procedures, numerous concerns remain.

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