In a letter addressed to the CEOs of monetary establishments, the Central Financial institution of Kenya (CBK) has mentioned monetary establishments working within the nation should stop and desist from coping with two Nigerian fintechs, Flutterwave and Chipper Money. The letter reiterates the CBK governor Patrick Njoroge and the Asset Restoration Company (ARA)’s assertions that the 2 firms will not be licensed to function in Kenya.
Flutterwave and Chipper’s Conflict With the CBK
The Central Financial institution of Kenya (CBK) has ordered monetary establishments within the nation to stop and desist from coping with two Nigerian fintech startups Flutterwave and Chipper Money. The order got here barely 24 hours after the CBK governor, Patrick Njoroge, had instructed journalists that the 2 entities will not be licensed to function in Kenya.
Earlier than the announcement by the CBK, a Excessive Court docket in Kenya had dominated that Flutterwave’s financial institution accounts be frozen to make means for a probe into the fintech big’s alleged unlawful actions. The courtroom ruling subsequently enabled Kenya’s Asset Restoration Company (ARA) to dam Flutterwave’s entry to greater than 50 financial institution accounts which reportedly maintain almost $60 million.
As beforehand reported by Bitcoin.com Information, the ARA has argued that Flutterwave will not be offering service provider companies as per claims however is as an alternative concerned in cash laundering actions. Nonetheless, Flutterwave dismissed the allegations and claimed to “have the information to confirm this.” The fintech unicorn, which raised $250 million earlier this yr, additionally claimed it “maintains the best regulatory requirements in our operations.”
As well as, the fintech agency’s assertion claimed its “anti-money laundering practices and operations are often audited by one of many Huge 4 corporations.”
CEOs of Monetary Establishments Instructed to Verify Their Compliance
Whereas Flutterwave instructed in its assertion that’s working with the regulators, Njoroge’s remarks and the CBK’s subsequent letter to CEOs of Kenyan monetary establishments dated July 29, reiterate ARA’s allegations that Flutterwave is engaged in “cash remittance and fee companies with out licensing and authorization.”
In the meantime, along with informing the heads of the Kenyan monetary establishments concerning the two fintechs’ working license standing, the letter additionally calls for the CEOs to substantiate their compliance with the order inside seven days.
“You’re due to this fact directed to right away stop and desist from coping with Flutterwave and Chipper. You’re thereafter required, inside seven days of the date of the letter to substantiate to CBK your compliance with the directive,” the CBK’s letter reads.
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