Financial Crime World

Financial Inclusion Report Highlights Successes in Timor-Leste as Country Grapples with Financial Crime Concerns

A recent report by Banco Central de Timor-Leste (BCTL) has shed light on the country’s progress towards financial inclusion, while also highlighting concerns about financial crime. The report, released earlier this month, highlights a significant increase in bank account ownership and access to financial services among Timorese adults.

Progress Towards Financial Inclusion

The report shows that 61% of Timorese adults now have a bank account, up from 57% in 2018. Women account for 65% of this total, compared to 57% men. The use of digital financial services has also increased, with e-wallets now accounting for 13% of the market.

Factors Contributing to Progress

BCTL Governor Abraão de Vasconcelos credited the modernization of the national payment system for these gains, which has allowed customers to make digital transactions between service providers and facilitated transfers between bank accounts and e-wallet accounts. The governor also expects that all Timorese will soon be able to use their debit cards in other countries in the region.

Concerns about Financial Crime

However, despite these successes, concerns about financial crime are growing. “As financial inclusion increases, so does the risk of financial crime,” said AFI Executive Director Dr. Alfred Hannig. “It is essential that BCTL and other authorities prioritize consumer protection and the integrity of financial services.”

Need for Greater Protection

The report highlights the need for greater levels of protection for consumers and the integrity of financial services as digital financial services continue to advance financial inclusion in Timor-Leste.

BCTL’s Commitment to Financial Inclusion

BCTL has been a leading advocate for inclusive finance in Timor-Leste, and its commitment to championing financial inclusion has led to significant progress. The central bank has also been an active member of AFI since 2010 and has completed nine of its 12 Maya Declaration targets.

Key Achievements

The report is the third developed by BCTL to accelerate financial inclusion in Timor-Leste and outlines key achievements, including:

  • A 200% increase in access points
  • Greater uptake among financial services
  • Financial literacy activities

Global Recognition

The central bank’s efforts have been recognized globally, with Timor-Leste’s approach to women’s financial inclusion being particularly striking.

Conclusion

The report is an “essential read” for local authorities and other network members, said Dr. Hannig, as it will help inform their own financial inclusion policies and strategies.