flutterwave
Oneal Bhambani, newly appointed CFO for Flutterwave.

Nigerian fintech, Flutterwave Payment Technology Limited, has denied claims that it was involved in a $59 million money-laundering scheme in Kenya which led to the closure of bank accounts operated by the company.

Yesterday, a Kenyan court ordered the closure of 56 bank accounts operated by seven companies after the country’s Asset Recovery Agency (ARA) told the court that the accounts were used as conduits for money laundering disguised as providing merchant services.

“Investigations established that the bank accounts operations had suspicious activities where funds could be received from specific foreign entities which raised suspicion. The funds were then transferred to related accounts as opposed to settlement to merchants.” The ARA states

Flutterwave held 29 bank accounts with Guaranty Trust Bank, 17 with Equity Bank, and six with Ecobank.

Investigators concluded that some of the funds in these accounts were transferred into fixed deposit accounts adding that Flutterwave concealed the nature of its business by allegedly providing a payment service platform without authorization from the Central Bank of Kenya as required by section 12 of Kenya’s National Payment System Act.

However, in a statement seen by Techspace Africa, Flutterwave denied these claims and stated that the company was a target of false media reports and misrepresentations.

The Fintech also briefly outlined its payment system and how it earned its fees across the continent.

“Claims of financial improprieties involving the company in Kenya are entirely false and are being circulated as part of a disinformation campaign. Flutterwave has been a target of deliberate false media reports and misrepresentations.”

“Through our financial institution partners, we collect and pay on behalf of merchants and corporate entities. In the process, we earn our fees through a transaction charge, records of which are available and can be verified. As a business, we hold corporate funds to support our operations and provide services to all our customers.

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“By facilitating payments for the biggest organizations in the world and everyday businesses, we process significantly large volumes of money and contribute to growing the economy in Kenya, and the rest of Africa.”

Flutterwave says that its Anti-Money Laundering practices were always audited by an unnamed reputable firm and it complied with regulatory bodies.

“We are a financial technology company that maintains the highest regulatory standards in our operations. Our Anti-money laundering practices and operations are regularly audited by one of the big four firms. We remain proactive in our engagements with regulatory bodies to continue to stay compliant.

“Flutterwave has a responsibility to ensure the integrity of the ecosystem, and we pledge our commitment to continue to work with all stakeholders to uphold this. We are working to figure out the motive behind the publication, and have the records straightened,” the statement concluded.

Flutterwave is the highest valued African start-up, recently announcing that it had raised USD $250 million in Series D funding, valuing the company at over $3 billion as the brand continues to transform the way Africans transact on the continent and worldwide

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Nigel Jr.
As a tech enthusiast and expert, Nigel Jr. is dedicated to providing in-depth and insightful content on all things technology. With a background in online journalism, product reviewing, and tech creation, Nigel has become a trusted source for all things tech.

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