Airtel Mobile Commerce N.V., which operates Airtel Money in Africa, has made a commitment to prevent money laundering and terrorism financing as part of the International Finance Corporation's (IFC) £67.2 million investment. Airtel Money is a digital financial services arm of Airtel Africa, allowing users to send, receive, and manage money from their online wallets in 13 African markets, including Kenya. The IFC's investment adds a new layer of compliance for the telco, which is already subject to international and local money laundering and terror financing checks.
The IFC has required Airtel Money to adhere to various commitments, including environmental standards. The company has entered into a policy agreement with the IFC, which includes covenants and undertakings related to applicable environmental and social laws, restrictions against fraud, corruption, and other sanctionable practices. Airtel Money has also agreed to maintain internal policies, procedures, and controls for anti-money laundering and countering the financing of terrorism.
As part of the agreement, Airtel Money will conduct an independent assessment of its anti-money laundering and countering the financing of terrorism within one year of the IFC investment and at least once every three years thereafter. The company already has measures in place to prevent its network from being used for money laundering and terrorism financing, including verifying customer identification documents, reporting suspicious transactions, and maintaining records of transactions.
Airtel Money agents are required to flag customers who are unwilling to disclose the source of funds, refuse to provide identification, or conduct multiple similar transactions over a short period. The company's agents must also report suspicious transactions and maintain records of transactions. These measures are part of Airtel Money's existing compliance procedures.
Under the IFC investment deal, Airtel Money will also have to make certain sustainability disclosures publicly each year on its website. The company has agreed to provide the IFC and its environmental and social accountability mechanism with access rights to verify compliance with the undertakings and covenants required by the agreement.
The IFC's participation in Airtel Mobile Commerce's initial public offering (IPO) is expected to help attract additional private capital to one of the largest IPOs by an African business on the London Stock Exchange. Airtel Money plans to sell 270 million shares at £1.96 each, raising about £529 million. The transaction values the fintech firm at about £5.3 billion, with trading expected to begin on October 14.
The IFC has previously invested in Airtel Africa, committing $165 million in 2024 to support operations and refinance existing loans across Airtel subsidiaries in Kenya, Rwanda, and the Democratic Republic of Congo. In 2022, the IFC provided a $194 million loan to Airtel Africa to expand mobile internet connectivity across six African countries. Airtel Money operates in 13 African markets, including Kenya, Chad, and Tanzania.
Key points
- The IFC has invested £67.2 million in Airtel Mobile Commerce's planned London Stock Exchange listing.
- Airtel Money has committed to curb money laundering and terrorism financing as part of the IFC's investment.
- The company's IPO is expected to attract additional private capital to the London Stock Exchange.
