Financial Crime World

COMOROS: Regulatory Requirements for Financial Institutions Tighten

The government of Comoros has introduced stricter regulatory requirements for financial institutions operating in the country to enhance financial stability and consumer protection.

Financial Inclusion Challenges

  • There are approximately 20 registered agents per 100,000 people in Comoros.
  • The adult population unbanked is estimated at around 40%.
  • Only about 30% of individuals use the internet regularly.
  • Mobile subscription rate is high, but data-only mobile-broadband remains a significant barrier.

Enabling Environment for Financial Innovation

  • Comoros has established a mobile connectivity index score of 65 out of 100, indicating a moderate level of preparedness for mobile internet adoption.
  • The government has implemented digital ID and remote account opening (e-KYC) allowing methods.
  • An innovation hub and sandbox have been set up to provide a structured framework for fintech companies to test and develop new products and services.

Financial Consumer Protection

  • Comoros has a financial consumer protection legal framework in place.
  • Electronic money regulations govern financial institutions’ ability to issue electronic money.
  • The country’s payments infrastructure includes electronic money regulations.

Innovation Facilitators

  • An innovation hub and sandbox have been set up to provide a structured framework for fintech companies to test and develop new products and services.

Account Ownership Rates

  • Around 20% of respondents reported having an account at a bank or financial institution.
  • There is a significant gender gap in account access, with men being more likely than women to have an account.
  • Urban- rural gap in account access is notable, with urban residents being more likely to have an account.

Digital Payments Landscape

  • Only around 10% of respondents reported using mobile money or other digital payment methods.
  • The government has made efforts to increase financial inclusion through initiatives such as electronic wage payments and utility bill payments.

In conclusion, while Comoros faces significant challenges in terms of financial inclusion and regulatory requirements, the country is working towards creating an enabling environment for fintech innovation and financial consumer protection.