Stablecoin remittance

Overview

This guide outlines fraud prevention strategies for stablecoin systems integrating with African mobile money services like M-PESA, MTN Mobile Money, and Orange Money. It is designed for remittance service providers integrating with African mobile money systems. It focuses on preventing fraud in cross-border money transfers by leveraging custom remittance fields, corridor-specific risk factors, and machine learning-based scoring systems. It focuses on securing the bridge between traditional mobile money and stablecoin transactions.

Common Fraud Patterns in African Mobile Money Markets

SIM Swap Detection

Pattern: Unauthorized SIM card replacement to intercept verification SMS
Risk: Account takeover through mobile number compromise
Detection: Monitor SIM change patterns and implement additional verification layers
Regional consideration: High prevalence in Kenya, Nigeria, and South Africa

Mobile Money Agent Fraud

Pattern: Unauthorized agent transactions or agent collusion
Risk: Money laundering through split deposits
Detection: Track agent location patterns and transaction velocities
Special focus: M-PESA agent network monitoring

Cross-Border Transaction Monitoring

Pattern: Structured transactions across multiple mobile money providers
Risk: Regulatory arbitrage across African markets
Detection: Cross-provider transaction pattern analysis

Regional Compliance Requirements

Kenya

Central Bank of Kenya (CBK) reporting requirements
M-PESA transaction limits compliance
AML/CFT requirements for mobile money

Nigeria

Nigerian Financial Intelligence Unit (NFIU) requirements
BVN integration requirements
Mobile money operator compliance

South Africa

SARB mobile money guidelines
FICA compliance requirements
Cross-border reporting requirements

Integration Guide

Create a user as outlined in User
Send through wallet and crypto transactions as outlined in Transaction
Take action based on suggested response. Implement blocking mechanism and risk review processes
Enable additional data points such as crypto wallet address expsoure and device fingerprinting

Mermaid