Financial Crime World

Financial Landscape in the Central African Republic

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Regulatory Requirements for Financial Institutions

The Central African Republic has a unique set of regulatory requirements that govern the financial sector. The country’s financial consumer protection (FCP) legal framework is still in its early stages of development.

Key Statistics and Indicators

  • ATM Availability: Approximately 2 ATMs per 100,000 people, indicating a shortage of banking infrastructure.
  • Mobile Money Agents: Fewer than 5 registered agents per 100,000 people.
  • Adult Population Unbanked (est.): Estimated at around 80% of respondents who do not report having account access.
  • Mobile Subscription Rate: Only about 10 subscriptions per 100 inhabitants.

Infrastructure and Affordability

  • The Mobile Connectivity Index ranks the Central African Republic poorly, indicating significant challenges in terms of infrastructure, affordability, consumer readiness, and content and services.
  • Cost of Data-Only Mobile-Broadband: A minimum plan offering at least 2GB of high-speed data (≥ 256Kbit/s) over a 30-day period costs around $10.

Innovation Capability

  • The country has limited capacity for innovation, collaboration, research, development, and commercialization.
  • The Network Readiness Index also suggests that the country’s technology infrastructure is underdeveloped, which hinders digital payments adoption.

Digital Payments and Financial Inclusion

  • Digital ID or eID: Not available in the Central African Republic.
  • Remote Account Opening (e-KYC): Not allowed.
  • The existence of digital payment systems and mobile money services is relatively rare, with fewer than 10% of respondents reporting using these services.

Financial Consumer Protection

  • The country has a relatively primitive payments infrastructure, with limited options available.
  • Electronic money regulations are not in place.
  • Supervision structure as reported by relevant responding jurisdictions indicates a need for regulatory oversight to ensure compliance with financial consumer protection regulations.

Innovation Facilitators and Account Ownership Rates

  • Innovation Facilitators: Regulator Accelerators, Sandboxes, and Innovation Hubs are non-existent.
  • Account Ownership Rates: Fewer than 20% of respondents report having an account at a bank or another type of financial institution or using mobile money services.

Gaps in Financial Access

  • The gender gap in account access is significant, with male respondents being more likely to have account access than female respondents.
  • Urban/rural gaps in account access and income gaps in account access are also notable, indicating unequal distribution of access to financial services across different regions and population segments.

Digital Payments Adoption and Savings Rates

  • Digital Payments Adoption: Fewer than 10% of respondents report using mobile money or digital payment services.
  • Savings Rates: Fewer than 10% of adults save at a financial institution or through a mobile money account.