MTN under fire over mobile money services

2 Jul 2012

MTN Uganda has been taken to court over its mobile money offers, as the service is unregulated, the Daily Monitor reports. A local businesswoman Kimberly Kasana and MP Abdu Katuntu have filed the case, looking for the court to rule that MTN’s mobile money service is a de facto financial institution and order the cellco to refund all money made from related promotions. Katuntu claims that the South African-backed cellco is a non-bank e-money issuer, but is not prudently regulated like other financial institutions: ‘The mobile money service has grown steadily over the years with an e-float of more than UGX1 trillion (USD401.2 million) in the year ending 2011 and yet there are no controls and safeguards to ensure that customers’ funds deposited with the defendant are not endangered or lost.’

Uganda, MTN Uganda