Four fintech companies have been directed by the Central Bank of Nigeria (CBN) to halt the onboarding of new customers until further notice. Allegations that the impacted fintech companies—OPay, Palmpay, Kuda Bank, and Moniepoint—had their accounts used for unauthorized foreign exchange transactions have drawn attention to the Apex Bank.
Two of the companies’ representatives reportedly admitted that the CBN’s direction is connected with these allegations. They did, however, highlight the fact that most of the affected accounts are held by commercial banks rather than fintech platforms, raising fears that the mandate might be misdirected.
A court order to freeze at least 1,146 bank accounts belonging to individuals and companies accused of engaging in illicit foreign currency transactions was obtained by the Economic and Financial Crimes Commission (EFCC), according to reports.
In a decision on the ex-parte motion made by Ekele Iheanacho, the attorney for the anti-graft agency, Justice Emeka Nwite permitted the commission’s request to conclude its investigation in ninety days. The certified authentic copy of the verdict, which was rendered on April 24, was delivered on Monday. In addition, the EFCC is looking into other offences like financing terrorism and money laundering.
The bulk of the impacted accounts have been identified as deposit money bank accounts, according to a review of the list.
In its request for an account freeze, the EFCC said that preliminary findings from its investigation linked the accounts to people abusing online cryptocurrency exchanges to manipulate the value of the Naira illegally and launder money obtained from illicit operations. It mentioned the need to hold onto the money in the designated accounts until the investigation’s end and any potential prosecution.
The majority of the accounts linked to alleged illegal forex trading are listed as commercial bank accounts in a court order, but the banks have not been told to stop onboarding new customers.
Olagoke Ajibola is a creative writer and content producer with an eye for details and excellence. He has a demonstrated history of telling stories for TV, Film and Online. Aside from being fascinated by the power of imagination, his other interest are travel, sport, reading and meeting people.
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