A Financial and Banking expert has debunked assertions that the now popular mobile money system is operating without legal backing.

Nana Otu Acheampong says there are laws, including the Ghana Payment Systems Act and sections of the Bank of Ghana Act which legalizes the operation of the mobile money.

His comments are in reaction to concerns being raised by some Members of Parliament over the security and safeguards within the operations of the mobile money system.

MP for Suhum, Fredrick Opare Ansah in an interview with Joy News' Parliamentary Correspondent Elton John Brobbey said the mobile money operations, as it is, is not backed by law.

"It is a grey area, there is no clear law that is for or against it. It is an available technology on mobile networks and mobile companies are taking advantage," he stated.

He believes the system is open to risk and abuse and wants the Bank of Ghana and the National Telecommunication Authority to step up actions in the sector.

"I go to an outlet and i believe the outlet to be a genuine agency. I give my money to them and they say they have done a service for me. I may not hear the other person at the other end confirming receipt of the money before i leave.

"What if tomorrow morning it turns out some person set up some fake place and took people's deposits in the name of telecom entity," he cited.

"I am not sure what kind of safeguards or securities exist for people who are actually patronising this service," he stated.

He said the telcos cannot be allowed to regulate itself. It is never the best.

But speaking to Joy News Nana Otu Acheampong said there are copious guidelines and regulations which regulate the activities of the mobile money operation.

"We can't be asking for more regulations," he stated.

He cited an instance where one of the telcos was "going offside. Someone decided to give loans," he said but added that telcos was quickly stopped from doing that.

There are concerns the mobile money system will be competing with the banking system but Nana Acheampong says the mobile should not be seen as competing with the banks. "It is rather complimentary," he added.

"The mobile money is God sent for the average Ghanaian. It is giving access to the payment system that otherwise we wouldn't have access to," he insisted.