Intra- and Inter-Agency Coordination

Number of replies: 16

DFS regulation and supervision typically involve multiple teams within a supervisory authority and across agencies. For example, payment systems, banking supervision and financial inclusion teams in a central bank may all oversee DFS providers, alongside a separate market conduct regulator and a competition authority. 

The high confluence of actors with different mandates, objectives, and interests underscores the need for effective coordination mechanisms. 

In this next video, we explore intra- and inter-agency coordination for risk-based supervision. 

 

 

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Click to view the transcript.

As you have seen in this video, DFS supervisors do not operate in a vacuum. Their supervisory activities need to cover complex and shifting landscapes that require collaboration and cooperation with various and sometimes unexpected parties. 

Because technology is moving so quickly and providers continue to innovate, supervisors will continue to need to connect with other authorities to stay ahead of these changes and ensure appropriate supervision of financial activities to protect vulnerable customers and encourage inclusive DFS. 

Additional Reading 

If you would like to learn more about coordination within and across agencies, then please consult the following readings:

In reply to First post

Re: Intra- and Inter-Agency Coordination

by Erah, Dominic Ose Erah - Group 1
Nice lecture on the need for collaboration within and outside agencies responsible for carrying out regulatory functions over financial institutions. In my country (Nigeria) there exit a serious collaboration within the Central Bank (Banking Supervision, Consumer Protection, IT, Payment System, etc ) and other agencies (NDIC, SEC, etc) in the area of supervision of banks
In reply to First post

Re: Intra- and Inter-Agency Coordination

by LEILAH ABDALAH MUBEYA - Group 6
Collaboration plays a crucial role in enhancing effective supervision of Digital Financial Services (DFS). In the context of Tanzania, supervision of DFS involves close collaboration among different departments within the central Bank, which work together on daily supervisory activities, including both onsite and offsite supervision.
In addition, the Bank collaborates with other domestic regulatory authorities such as the telecommunications regulatory authority, the Fair Competition Commission, the Registrar of Companies, the Financial Intelligence Unit, and insurance regulatory authorities etc,. Furthermore, there is collaboration with other central banks and other regional frameworks, as well as with regulatory authorities outside the country, particularly in overseeing cross-border DFS and payment systems.
In reply to LEILAH ABDALAH MUBEYA

Re: Intra- and Inter-Agency Coordination

by Kauthar Conrad -
It's great to hear about the advancements in Tanzania around collaboration. Have a look at the readings, I think you will find them insightful Leilah
In reply to First post

Re: Intra- and Inter-Agency Coordination

by Mariam Nansubuga - Group 4
Interesting! No single authority can supervise DFS comprehensively in isolation, and building structured collaboration channels across departments, regulatory bodies, and international partners is essential to closing oversight gaps, preventing regulatory arbitrage, and maintaining a holistic view of risks in an increasingly borderless digital financial landscape.
In reply to First post

Re: Intra- and Inter-Agency Coordination

by AISHA UMARU HADEJIA - Group 1
Collaboration is essential for the effective supervision of Digital Financial Services (DFS). In Nigeria, this involves strong coordination among various departments within the Central Bank of Nigeria, including the Payment Systems, Consumer Protection and Financial Inclusion, IT, and Financial Policy and Regulation departments. It also requires close cooperation with external agencies such as the Securities and Exchange Commission (SEC), the Nigerian Communications Commission (NCC), and the Nigerian Financial Intelligence Unit (NFIU). Together, these institutions carry out daily supervisory activities both onsite and offsite to ensure the safety, inclusiveness, and resilience of the DFS ecosystem.
In reply to First post

Re: Intra- and Inter-Agency Coordination

by Sheena Rebecca Nantumbwe - Group 4
Indeed, collaboration and coordination on all levels that is internal, institutional and cross border goes a long way in enabling DFS supervisors acquire more insight and regulatory expertise on the ever-evolving financial advancements
In reply to First post

Re: Intra- and Inter-Agency Coordination

by Lucy Kihembo - Group 4
Collaboration and coordination also improve efficiency and learning curve in the DFS dynamic environment. This was a well represented section of the module
In reply to First post

Re: Intra- and Inter-Agency Coordination

by Jemimah Precious Kuteesa - Group 4
Intra and Inter-Agency is definitely crucial in DFS supervision; given the various regulations that most DFS providers are required to comply with, all supervisory bodies must work collaboratively to mitigate risks that may arise out of jurisdictional overlap or mandate redundancy.
In reply to First post

Re: Intra- and Inter-Agency Coordination

by Usman Bayero - Group 1
The lecture underscores that for a complex market like Nigeria, intra agency coordination is vital to prevent "policy silos". Inter agency coordination between regulators in Nigeria is the only effective way to tackle cross-cutting issues like regulations on stablecoin, rides of predatory loan sharks etc. Without this synchronised approach, we risk creating a regulatory vaccum that stifles innovation and leaves consumers vulnerable.
In reply to First post

Re: Intra- and Inter-Agency Coordination

by Zedi Muyingo Muyingo - Group 4
The lecture underscores the relevance of collaboration in conduction supervision of DFS providers. Both home and host regulatirs play key roles in enhancing supervision of these entities.
In reply to First post

Re: Intra- and Inter-Agency Coordination

by Aliyu Mohammed - Group 1
This is very critical. Supervisors must ensure intra and inter-agency collaboration if they must stem regulatory arbitrage.
In reply to First post

Re: Intra- and Inter-Agency Coordination

by KABIRU MUDASHIRU - Group 1
In Nigeria we have the inter agency coordination, one of the very notable one is the FSRCC (Financial Service Regulations Coordinating Committee, which include Security and Exchange Commission (SEC), Central Bank of Nigeria (CBN), Pension Commission (PENCOM), National Insurance Commission (NAICOM), Nigeria Deposit Insurance Commission (NDIC), CAC, FIRS, NSE. they collaborate to prevent regulatory arbitrage, and in some instances carry out consolidated examination of institutions especially those with Holdco structure.
In reply to First post

Re: Intra- and Inter-Agency Coordination

by Muhammad Nabeel Akhtar Akhtar - Group 5
Collaboration on supervisory issues, at both internal and external level is crucial for effective supervision especially for fintechs and new technologies which have different business models. Without collaboration, supervisors risk developing fragmented assessments, missing interconnected risks and responding inconsistently to innovation.
In reply to First post

Re: Intra- and Inter-Agency Coordination

by Humza Nadeem Jami - Group 5
This was particularly insightful as this is a challenge that our jurisdiction is faced with on a regular basis.
In reply to First post

Re: Intra- and Inter-Agency Coordination

by Shabani Shabani - Group 6
Collaboration and coordination is very important in supervision and regulation of DFS. As per Tanzania context, various directorate including Directorate of financial sector supervision, Directorate of financial deepening and inclusion, Directorate of National payment system and Directorate of legal services works well together to ensure effective supervision of DFS.
BOT Externally collaborate with Tanzania Tecelecommunication authority (TCRA), Fair Competition Commission (FCC), Financial Crime Unit (FCU), and Financial Intelligence Unit (FIU) to effectivelly regulate DFS and recently launched self regulatory approach for tier II MSPs that will assist regulation of DFS to Digital Microfinance Service Providers.
Internationally BOT participate in international forum coordinated by AFI, MEFMI, FinConnect and many other associations.
In reply to First post

Re: Intra- and Inter-Agency Coordination

by Agaba Albert Busingye Agaba - Group 4
The supervision of DFS requires collaboration across the financial sector for example, In the Ugandan context, The Financial Intelligence Authority and Bank of Uganda have to collaborate in handling Anti-money laundering cases or situation while mitigating risks. This also includes coordinating internally.